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CS Professional · CSR and Social Governance · Social Stock Exchange

Greenleaf Foundation, a registered charitable trust in Pune, runs a programme providing free coaching to children from low-income families and wants to raise funds through the Social Stock Exchange. Which of the following best describes its position on eligibility?

A registered charitable trust working in education for poor children can be identified as a social enterprise, because non-profit organisations with a primary social-impact objective in an eligible activity area qualify. Conversion into a company or prior main-board listing is not required.

  1. AIt can be identified as a social enterprise because it is a non-profit organisation whose primary objective is social impact in an eligible activity areaCorrect
  2. BIt cannot be identified because only companies registered under the Companies Act can participate
  3. CIt can be identified only if it first converts into a for-profit company
  4. DIt can be identified only if it has already listed its securities on a main-board exchange

Explanation

Under the SEBI framework, non-profit organisations such as registered charitable trusts and Section 8 companies can be identified as social enterprises if their primary goal is social impact and they work in an eligible activity, such as eradicating hunger, education or poverty. Conversion to a for-profit entity or prior main-board listing is not required.

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