Non-Profit Organisations Would Be Allowed To Be Listed Under SEBI's New Framework

Any Non-Profit Organization (NPO) that wishes to be listed must be registered as a non-profit entity, according to market regulator SEBI, and the registration certificate must be valid for a full year. The Income Tax Department shouldn't be conducting any continuing inspections or issuing any notices.

A new structure for the Social Stock Exchange (SSE) was put forth by the SEBI on Monday. With this new framework, non-profit organizations (NPO) could be listed.

The company must be registered as a "charitable trust registered under the public trust statute of the appropriate state" in India, as well as under the Societies Registration Act of 1860, the Indian Trusts Act of 1882, or under Section 8 of the Companies Act of 2013. According to a note from Angel One, the NPO's minimum age should be three years.

The NPO needs to specify whether it is privately or publicly owned. Any NPO entity that wants to be listed must be registered under section 80G of the Income Tax Act. Each entity must have had a minimum investment of Rs. 10 lakh and a minimum spending of Rs. 50 lakh in the last fiscal year.

The social impact and objective of NPOs should be their top priority when applying to be included. The numerous social goals for underserved and unattended populations or regions should be the main emphasis of these intentions.

The board has listed 16 general social activities that the NPO should be involved in. Reducing hunger, poverty, malnutrition, and inequality; advancing healthcare; assisting with education, employability, and livelihoods; advancing gender equality for women and LGBTQIA communities; and assisting social entrepreneurship incubators are all qualifying initiatives.

In India, there is a large NGO sector. There are more than 31 lakh NPOs, or one NPO for every 400 Indians. According to Angel One, this new framework proposed by SEBI will unquestionably assist these NPOs in following a cutting-edge path for the benefit of the populace.