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CS Professional · CSR and Social Governance · Social Stock Exchange

Dhanam Society, an NPO listed on the Social Stock Exchange, files its annual impact report late and with figures that the stock exchange considers unsupported by the social auditor's assessment. Which body has regulatory oversight to take action on this disclosure lapse for the Social Stock Exchange segment?

SEBI is the regulator, and the stock exchange running the Social Stock Exchange segment enforces the disclosure norms on listed NPOs. The Registrar of Companies, RBI and tax tribunal do not supervise annual impact reporting on this segment.

  1. AThe Ministry of Corporate Affairs alone, through the Registrar of Companies
  2. BSEBI, with the stock exchange operating the Social Stock Exchange enforcing the disclosure requirementsCorrect
  3. CThe Reserve Bank of India through its banking supervision department
  4. DThe Income-tax Appellate Tribunal

Explanation

The Social Stock Exchange operates as a separate segment of a recognised stock exchange under SEBI regulation, so SEBI frames the disclosure norms and the exchange enforces them against listed NPOs. The MCA/ROC option is wrong because it does not regulate this segment, even though Section 8 companies may be registered with it.

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