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Lakshmi Seva Trust, a registered non-profit organisation, applies to be registered on the Social Stock Exchange. Its main activity is eradicating hunger and poverty among slum families. Which of the following best applies to its eligibility under the SEBI framework?

Lakshmi Seva Trust can qualify as a social enterprise because a non-profit organisation whose primary goal is an eligible social objective, such as eradicating hunger and poverty, is within the SSE framework, subject to the other conditions. It need not become a listed company or conduct an IPO.

  1. AIt can be treated as eligible only if it first converts into a listed company
  2. BIt is ineligible because the SSE is open only to for-profit social enterprises
  3. CIt may be identified as a social enterprise because it is a non-profit organisation whose primary goal is a social objective such as eradicating hunger and poverty, subject to the framework's other conditionsCorrect
  4. DIt is eligible only if it has already raised money through an IPO of equity shares

Explanation

Under the SEBI framework, non-profit organisations and for-profit social enterprises engaged in eligible social activities (including eradicating hunger, poverty, malnutrition) can be identified as social enterprises, subject to conditions. Conversion into a listed company or a prior IPO is not required. The SSE is not restricted to for-profit entities.

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