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CS Professional · CSR and Social Governance · Social Stock Exchange

Asha Seva Trust, a registered non-profit organisation, has had its eligibility accepted for the Social Stock Exchange and wants to raise funds through a Zero Coupon Zero Principal instrument. Under the SEBI framework, which statement about its annual reporting duty as a social enterprise is correct?

A non-profit organisation registered or listed on the Social Stock Exchange must file an annual impact report with the exchange. The duty arises from its social enterprise status and fund-raising, not from being a company or from any fixed amount raised.

  1. AIt must file an annual impact report with the stock exchange, covering the social impact createdCorrect
  2. BIt need only file the report if it raised more than Rs 50 crore
  3. CIt is exempt from reporting since it is not a company
  4. DIt must file the report only when asked by a donor

Explanation

A non-profit organisation registered on the Social Stock Exchange must make an annual impact report disclosure, showing the social impact achieved against its stated targets. The duty does not depend on legal form or on a fund-raising amount threshold, so the other options misstate the rule.

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