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Jun 02, 2024
SEBI adds two more agencies who can recognise assessors for Social Stock Exchange
The market regulator, Securities and Exchange Board of India (SEBI), has added two more agencies with which social-impact assessors can be registered in the context of Social Stock Exchange (SSE):
1. ICMAI Social Auditors Organisation (ICMAI SAO), under the Institute of Cost Accountants of India
2. ICSI Institute of Social Auditors (ICSI ISA), under the Institute of Company Secretaries of India
Under the earlier norms, only Institute of Chartered Accountants of India (ICAI) had been recognised as the agency with which such assessors had to be registered. Under the norms, the regulator could specify any other agency at any point in time. The social-impact assessor also needs to clear a certification programme conducted by the National Institute of Securities Market (NiSM).
SEBI mandates social enterprises to submit impact report for FY24 by October 2024
SEBI has mandated social enterprises, which have registered or raised funds through the Social Stock Exchange (SSE), to submit an 'Annual Impact Report' (AIR) for the financial year 2023-24 to such bourse by October 31, 2024.
A social impact report includes qualitative and quantitative details of past social impacts by the enterprise, covering aspects such as strategic intent, planning, approach, and an impact scorecard. Notfor- profit organisations (NPOs) registered on the SSE, including those with listed securities, must also disclose their annual activities on the exchange for FY24.
SEBI mandates 10-minute video disclosure for companies launching IPOs
In a step towards investor awareness, SEBI has directed companies planning to launch an Initial Public Offer (IPO) to release a 10-minute video containing key information related to the issue. The initiative is to make it easier for investors to understand the features of the public issue and the company. As per the guidelines, the AV will have to cover details on the business of the company, promoter, management, financial information, pending legal matters, risks, and other details which usually the draft red herring prospectus (DRHP) contains. The content of the AV must be factual, nonrepetitive, non-promotional and shall not be misleading in any manner. The video will be made available on the issuer's website, social media, on the website of the Association of Investment Bankers of India (AIBI), and in the offer documents through a QR code. Further, investors have been advised not to rely on any other information related to the issue provided on social media platforms and fin-fluencers.
Initially, these videos will be made available in English and Hindi. The guideline is voluntary for companies filing Draft Red Herring Prospectus (DRHP) from July 1 but is mandated for draft documents filed after October 1.
DID YOU KNOW?
The Social Stock Exchange (SSE) is a novel concept in India, providing a separate segment within the existing stock exchange to help social enterprises raise funds from the public through the stock exchange mechanism, while making a positive impact on society!
Bringing a Silent Revolution through the Boardroom
Institute of Directors (IOD) is an apex national association of Corporate Directors under the India's 'Societies Registration Act XXI of 1860'. Currently it is associated with over 30,000 senior executives from Govt, PSU and Private organizations of India and abroad.
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Bringing a Silent Revolution through the Boardroom
Institute of Directors (IOD) is an apex national association of Corporate Directors under the India's 'Societies Registration Act XXI of 1860'. Currently it is associated with over 30,000 senior executives from Govt, PSU and Private organizations of India and abroad.
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