CSR and Social Governance · Social Stock Exchange

Eligible Social Enterprises and Activities under SEBI SSE

Updated 11 October 2026 · Fact-checked

Under SEBI's Social Stock Exchange framework, a social enterprise is a non-profit organisation or a for-profit social enterprise whose primary goal is social impact through eligible activities. Corporate foundations, political or religious organisations or activities, professional or trade associations, infrastructure companies and housing companies (except affordable housing) are excluded. Test the entity type, the activity, then the exclusions.

Understand Eligible Social Enterprises and Activities

A Social Stock Exchange (SSE) is a separate segment of a recognised stock exchange. It lets social enterprises raise money and report their social impact in a regulated way. Before an entity can use it, it must first be an eligible social enterprise.

SEBI's ICDR Regulations, 2018 recognise two kinds of social enterprise. A non-profit organisation (NPO) is a charitable trust registered under the applicable law, a society, or a company registered under Section 8 of the Companies Act, 2013, that does not distribute surplus to owners. An NPO must also register with, or be identified by, the SSE before it can use it. A for-profit social enterprise (FPE) is a company or similar entity that can earn and distribute profit, but must show that social impact is its primary goal.

The key difference is how eligibility is proved. An NPO is tested mainly on its legal form and on engaging in eligible activities. An FPE must also prove social intent. It must show that it serves underserved or less privileged groups or less developed regions, and that a prescribed majority threshold of its business, measured by revenue, expenditure or customer base, relates to eligible activities and these target groups. The exact threshold and the way it is applied are set out in the SEBI ICDR Regulations. Check the current regulation text for them and quote them in your answer.

The eligible activities are a list of social objectives in the ICDR Regulations. The list is commonly cited as having 16 activities, but confirm the count and the exact wording against the current regulation text. The themes below are paraphrased. They include hunger, poverty and inequality; health care, sanitation and drinking water; education, employability and livelihood; gender equality and empowerment; environmental sustainability and climate action; protection of heritage, art and culture; training in rural and recognised sports; support for incubators and other social enterprises; disaster management; financial inclusion; access to land and property for disadvantaged communities; bridging the digital divide; and welfare of migrants and displaced persons. In an answer, name the theme and link it to the entity's work. Do not try to recite the list word for word unless the question asks for it.

Some entities are ineligible even if they do good work. These are corporate foundations, political or religious organisations or activities, professional or trade associations, infrastructure companies, and housing companies (except affordable housing). Check this list after you have confirmed the entity type and the activity.

Key rules to remember

Eligibility test: Eligible social enterprise = (NPO or FPE) + primary focus on eligible activities + not in the ineligible list; Apply the three parts in this order and state a conclusion on each.
Two types of social enterprise: Social enterprise = NPO (registered charitable trust / society / Section 8 company, registered with or identified by the SSE) OR for-profit social enterprise (FPE); The NPO does not distribute surplus. The FPE may, but must prove social intent.
FPE social-intent test: FPE: primary goal is social impact + serves underserved groups or regions + the prescribed threshold of revenue, expenditure or customer base is linked to eligible activities and target groups; Quote the exact threshold from the SEBI ICDR Regulations as currently in force. The test is about the pattern of the business, not a one-off project.
Ineligible entities: Corporate foundations; political or religious organisations or activities; professional or trade associations; infrastructure companies; housing companies (except affordable housing); Check this list before you conclude that an entity qualifies.

How to solve Eligible Social Enterprises and Activities questions

Use this method for any case question on whether an entity or activity qualifies under SEBI's SSE framework.

1Identify the legal form of the entity: trust, society, Section 8 company, or a for-profit company.
2Classify it as an NPO or an FPE. Note that the FPE has to prove social intent and the NPO does not distribute surplus.
3Identify the main activity from the facts and match it to a theme in the list of eligible activities in the regulations.
4For an FPE, test whether the business is mainly directed at underserved groups or regions, using revenue, expenditure or customer base and the threshold in the regulations.
5Check the exclusions: corporate foundation, political or religious organisation or activity, trade or professional association, infrastructure company, or housing company (except affordable housing).
6Write the conclusion in one sentence: eligible as NPO, eligible as FPE, or ineligible, with the reason.
7If the question asks for next steps, add that the entity must register or be identified on the SSE and meet disclosure and impact reporting requirements.

Quickest way: Three-gate check

When to use it: When you have a short case and about five minutes for the answer.

Gate 1, type: NPO or FPE? Name it.
Gate 2, activity: which of the eligible themes does it serve? For an FPE, is it mainly serving underserved groups?
Gate 3, exclusion: is it a corporate foundation, political or religious body, trade or professional association, or infrastructure or housing company?
Pass all three gates and you conclude it is eligible. Fail any one and you conclude it is not, and say which gate it failed.

Common mistakes in Eligible Social Enterprises and Activities

Treating any charity as eligible.
Students assume that a good cause is enough.
Fix: Eligibility needs the right entity type and a listed eligible activity, and the entity must not be in the excluded list.
Saying a for-profit company can never join the SSE.
Students link the word social with non-profit only.
Fix: SEBI allows FPEs that prove primary social intent and focus on eligible activities and target groups.
Treating a corporate foundation as an NPO that qualifies.
Foundations look like non-profits, and they do CSR work.
Fix: Corporate foundations are specifically excluded. Name them as ineligible.
Ignoring the exclusion for religious or political activities.
Students read only the activity and skip the exclusions.
Fix: Always check the ineligible list. An entity doing education work through a religious organisation is still excluded if it falls in the excluded category.
Confusing Schedule VII CSR activities with the SSE eligible activities.
Both lists deal with social causes and overlap in many themes.
Fix: Keep them separate. Schedule VII is for CSR spending under the Companies Act, 2013. The SSE list is under SEBI's ICDR Regulations.
Ignoring affordable housing as an exception.
Students memorise housing and infrastructure companies as excluded and stop.
Fix: Write that affordable housing is the exception.

Worked examples

Example 1

Jan Vikas Trust is a registered public charitable trust. It runs free learning centres and skill training for school dropouts in rural Bihar. It does not distribute any surplus. Is it an eligible social enterprise under SEBI's SSE framework?

Show the solution

Entity type: a registered trust that distributes no surplus, so it is an NPO.
Activity: free learning and skills training for dropouts fits the theme of promoting education, employability and livelihood.
Exclusions: it is not a corporate foundation, a political or religious body, a trade association or an infrastructure company.
All three tests are met.

Answer: Jan Vikas Trust is an eligible social enterprise as an NPO, because it is a trust engaged in an eligible education and employability activity and does not fall in any excluded category.

Example 2

Shree Ganesh Mandir Samiti, a society, runs a temple and conducts religious festivals. Separately, Alpha Industries Community Foundation, a corporate foundation, funds village health camps. Are they eligible social enterprises?

Show the solution

Samiti, Gate 1 (type): it is a society, so the form is acceptable for an NPO.
Samiti, Gate 2 (activity): running a temple and conducting religious festivals is not an eligible activity under the SSE list, so it fails the activity test.
Samiti, Gate 3 (exclusion): religious organisations and activities are excluded, so it also fails the exclusion check.
Foundation, Gate 2 (activity): its activity of health camps fits the health care theme, so it passes the activity test.
Foundation, Gate 3 (exclusion): it is a corporate foundation, and corporate foundations are specifically excluded, so it fails the exclusion check.
So the Samiti fails Gate 2 and Gate 3, while the corporate foundation fails only Gate 3.

Answer: Neither is eligible. The Samiti fails the activity test and is also excluded as a religious organisation. Alpha Industries Community Foundation passes the activity test with its health work but fails the exclusion gate as a corporate foundation.

Exam tips

Write the entity type, the activity and the exclusion check as three separate points. It makes the structure easy to mark.
Always explain the NPO and FPE difference in one line. Examiners often ask for it directly.
If asked to list eligible activities, give the themes you are sure of with a short example each, rather than guessing at exact wording.
Do not mix up the SSE eligible activities with Schedule VII CSR activities.
Always finish with a clear conclusion that names the reason for eligibility or ineligibility.

Practice questions from Social Stock Exchange

Eligible Social Enterprises and Activities: frequently asked questions

What is the difference between an NPO and a for-profit social enterprise on the SSE?

An NPO is a charitable trust registered under the applicable law, a society, or a Section 8 company that does not distribute surplus to owners. It must also register with, or be identified by, the SSE. A for-profit social enterprise can earn and distribute profit, but must prove that its primary goal is social impact and that its business mainly serves eligible activities and target groups.

How many eligible social activities does SEBI list for the SSE?

The SEBI ICDR Regulations set out a list of eligible activities, commonly cited as 16. Confirm the count and the exact wording against the current regulation text. The themes include poverty, health, education, gender equality, environment, heritage, sports, disaster management and financial inclusion.

Which entities are ineligible for the Social Stock Exchange?

Corporate foundations, political or religious organisations or activities, professional or trade associations, infrastructure companies and housing companies are ineligible. Affordable housing is the exception to the housing exclusion.

Can a Section 8 company be a social enterprise on the SSE?

Yes. A Section 8 company is a non-profit form and can qualify as an NPO if it engages in eligible activities, is not in the excluded category, and registers with or is identified by the SSE.