NPOs Wishing To Be Listed Must Have Spent At Least Rs 50,000 In The Previous
September 21, 2022: NPOs wishing to be listed must have spent at least Rs 50,000 in the previous
financial year and at least Rs 10,000 in the previous financial year.
On September 19, the Securities and Exchange Board of India (SEBI), the market regulator, approved a framework for the Social Stock Exchange (SSE) to allow listing of non-profit organizations (NPOs).
His NPOs wishing to list must be registered as non-profit organizations and the registration certificate must be valid for the next 12 months, SEBI explained in the circular.
A company may be incorporated as a “charity trust registered under the charitable trust laws of the relevant state” or under the Social Registration Act 1860 or the Indian Trusts Act 1882 or as a corporation under section 8 of the Companies Act 2013 must be registered and Beware of circulation.
NPOs must also be declared government-owned or privately owned, and the organization must be “at least three years old,” she added.
A valid 80G registration under the Income Tax Act is required as per the circular. The minimum disbursement for NPOs last year was Rs 50,000, and the minimum fund for the previous year was Rs 10,000, she added.
“SSE will prescribe the structure of the draft/final funding document under the direction of the SSE Board of Directors (SGC). SSE will host such requests on her website.” she continued SEBI.
The information SSE is tasked with collecting includes the vision of the NPO. Strategy, information about key management, financial statements for the past three years, and the risks the NPO sees in its activities.
Sebi asked for public comment on his proposed SSE in July 2020. A few days later, a panel she appointed recommended the direct listing of her NPO through bond issuance and various funding mechanisms. Developed countries such as the UK, Canada and Brazil has her SSEs.
With over 31,000 of her NPOs in India, the market size is considered large. This is his one her NPO for about 400 Indians.
A draft of the 2020 Sebi report found that SSE can help rebuild the lives of those affected by pandemics like COVID-19.
“SSE aims to unlock a large pool of social capital and encourage hybrid financial structures so that traditional capital can work with social capital to meet the immediate challenges of COVID-19″ it said.
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