SEBI, vide its Circular dated 19th September 2025 (SEBI/HO/CFD/CFD-PoD-1/P/CIR/2025/129), has introduced modifications to the framework on Social Stock Exchange (SSE) pursuant to recent amendments in the ICDR Regulations and LODR Regulations notified in September, 2025. The changes refine eligibility requirements for Not-for-Profit Organizations (NPOs) registering with SSE, expand the disclosure obligations, and update reporting timelines. NPOs must now be registered in India under specified legal forms (trusts, societies, or Section 8 companies) with a valid registration certificate of at least 12 months at the time of applying to SSE.
Further, NPOs and Social Enterprises are required to make detailed annual disclosures on general, governance, and financial aspects within prescribed timelines, aligned with either October 31 or the due date of income tax return filing, whichever is later. The Annual Impact Report (AIR), covering at least 67% of program expenditure, must be submitted by all social enterprises raising funds via SSE and will be assessed by Social Impact Assessors. SSEs are empowered to specify additional parameters for disclosure. The framework aims to strengthen governance, transparency, and accountability of NPOs and Social Enterprises while enhancing investor confidence in the social sector.
