SEBI Mandates Social Enterprises on SSE to Submit Annual Impact Report for FY24

Current Context: The Securities and Exchange Board of India (SEBI) has indeed mandated social enterprises that have registered or raised funds through the Social Stock Exchange (SSE) to submit an ‘annual impact report’ for the financial year 2023-24.

• Here are the key points:
• The annual impact report must be submitted to the SSE by October 31, 2024.
• This report should capture both qualitative and quantitative aspects of the social impact generated by the social enterprise.
• Not-for-profit organizations (NPOs) registered on the SSE, including those with listed securities, must also disclose their annual activities on the exchange for FY24.
• This is an extension from the current requirement for social enterprises to disclose the annual impact report within 90 days from the end of the financial year.
• This move aims to assess the impact created by the social activities of these enterprises.
• It’s a significant step towards ensuring transparency and accountability in the functioning of social enterprises.

Question:

1. Which organizations are required to disclose their annual activities on the Social Stock Exchange (SSE) for FY24?

• A) Only for-profit social enterprises
• B) Only government organizations
• C) Not-for-profit organizations (NPOs) registered on the Social Stock Exchange (SSE)
• D) All publicly listed companies

Answer: C) Not-for-profit organizations (NPOs) registered on the SSE, including those with listed securities, must also disclose their annual activities on the exchange for FY24.