MUMBAI: The country’s oldest stock exchange BSE has got in-principle approval to start a social stock exchange. The regulator of the stock market, SEBI has allowed BSE to start a separate social stock exchange.
BSE has informed in a regulatory filing on the National Stock Exchange that SEBI has given in-principle approval to BSE to start a separate social stock exchange. In July this year, SEBI had notified the rules for starting a social stock exchange.
Last month, Sebi came out with a detailed framework for social stock exchange, specifying minimum requirements for a Not-for-Profit Organisation (NPO) for registering with the bourse and disclosure requirements.
In its circular, the regulator specified minimum requirements to be met by a NPO for registration with SSE, disclosure requirement for NPOs raising funds through the issuance of zero-coupon zero principal instruments and put in place annual disclosure requirements that needs to be made by NPOs on such exchanges.
With regard to minimum requirements to be met by a NPO, Sebi said that NPO needs to be registered as a charitable trust and should be registered for at least three years, must have spent at least ₹50 lakh annually in the past financial year and should have received a funding of at least ₹10 lakh in the past financial year.