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Navjyoti Welfare Society is an NPO that wants to raise funds via a ZCZP issue on the Social Stock Exchange. It has registered with the SSE segment of a stock exchange but has not yet filed any annual impact report. Which obligation does it carry once it raises funds through the SSE?

The society must disclose annual impact reports on the social impact achieved, as prescribed by SEBI. Impact reporting is central to the Social Stock Exchange framework, so NPOs are not exempt and cannot rely on financial statements alone.

  1. ADisclose annual impact reports on the social impact achieved, as prescribed by SEBICorrect
  2. BNo disclosure, as NPOs are exempt from all reporting on the SSE
  3. CPublish only a financial profit and loss statement without any social impact data
  4. DFile reports only if the fund raised exceeds the net worth of the trustees

Explanation

Entities on the SSE must make periodic disclosures including an annual impact report covering social impact achieved, in addition to financial disclosures. Exemption from reporting or financial-only reporting is incorrect because impact reporting is central to the SSE framework.

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