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CS Professional · CSR and Social Governance · Social Stock Exchange

Hariyali Foundation, a registered NPO, plans a public issue of ZCZP instruments on the Social Stock Exchange. Before it can raise funds this way, what must it first do?

The NPO must first register with, or be identified on, the Social Stock Exchange segment of a recognised stock exchange. Only after this registration can it raise funds through instruments such as ZCZP or mutual fund units, not through ratings or ROC approval.

  1. AObtain a credit rating of at least AA from a rating agency
  2. BGet listed on the main board of the stock exchange as a company
  3. CRegister or be registered as an NPO on the Social Stock Exchange segment of a stock exchangeCorrect
  4. DObtain prior approval of the Registrar of Companies

Explanation

An NPO must first be registered or listed in the social stock exchange segment of a recognised stock exchange before it can raise funds there. A rating or main board listing is not the entry condition, and ROC approval is irrelevant for a trust.

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