NGOs Listing on SSE: Benefits, Documents Required & Compliances 

The Social Stock Exchange is regulated by SEBI and it is an offering by NSE and BSE, that can help Social Enterprise(s) to raise funds from public through the stock exchange mechanism. This should act as an interface between Social Enterprises and fund providers so that they may help in choosing those entities creating measurable social impact and reporting such impact.  

In 2023 SGBS was the first NGO to get listed on SSE. These listed NGOs can raise capital through various instruments such as Zero-Coupon Zero-Principle Bonds (ZCZP Bonds), Development Impact Bonds (DIBs) and more through the public market. If you want to explore more about SSE (Social Stock Exchange), keep reading this blog, we will also share more essential details related to listing of NGOs on SSE. 

Certain type of Social Enterprises or NPOs that meet the eligibility criteria may be registered on SSE and commit themselves to making continuous disclosures about their social impact. The same NPOs may raise funds from SSE but would continue making disclosures, including social impact to stock exchanges.

Benefits of Registering on the SSE

There are several benefits that an NGO can receive after registering or listing to SSE, we have mentioned below: -

• Increased Funding Opportunities: If any NGO gets itself listed on SSE in that case they can open various opportunity for funding, because SSE has a wide base of investors, that includes individuals and financial institutions.
• Enhanced Credibility: Listing in SSE (Social Stock Exchange) can also lead a certain increase in credibility of social enterprise and NGO. It means more people are likely to trust it, means more investors and more donors.
• Transparency and Accountability: As the listing process for the SSE requires lots of documents and audits, so it ensures that NGO is trustworthy and maintain proper financial records, that leads to transparency.

In order to get listed on the SSE, NGOs are required to register on the platform first. NGOs can opt to get register either on the NSE/SSE or BSE/SSE. Process is almost the same to register or list any of them, but cost may vary.

First you need to check the eligibility criteria, before moving forward, NGO needs to make sure that it meets the guidelines and eligibility criteria. For that you can visit SSE India Eligibility to verify that your organisation meets all the guidelines.  This process may include organisation type, registration status and optional history etc.

Documents Required For NGO/NPO Listing to SSE

Once you have confirmed the eligibility criteria for the SSE, you can move forward to documentation, it is one of the most important part of listing NGO to SSE process, make you have all the required document for the listing NGO in Social Stock Exchange, we have mentioned all the documents below: -

Application Form

First step is to complete the application form as per Annexure-I, Annexures I-IV, and also other documents can be downloaded from NSE website.
Registration Certificate

NGO must be registered under one of the following: -

• Charitable trust registered under the public trust statute of the relevant state. 
• Charitable trust registered under the Societies Registration Act, 1860.
• Charitable trust registered under the Indian Trusts Act, 1882. 
• Company incorporated under Section 8 of the Companies Act, 2013.

NGOs must have registration certificate, that is valid for the next12 months from the date of competing application. Also, NGOs must be registered for the minimum 3 years before the application.

Governing Documents

NGO has to provide governing documents of the organisation, such documents include Memorandum of Association, Articles of Association, Trust Deed, Bylaws or Constitution as per applicability.

Tax Registration Certificate

Submit the registration certificate under Section 12A/12AA/12AB of the Income Tax Act, 1961. This document should be valid for the next 12 months.

80G Registration

You should provide a valid 80G registration under Income Tax Act, 1961.

Financial Statements

NGOs have to provide financial years audited financial statements, also fund flow statement. In the case of section 8 companies, last 3 years reports are also required.

Governing Body Resolution

Resolution has to be provided from the governing body for listing in Social Stock Exchange.

Confirmations

It includes the confirmations from the NGO as per the Annexure-II, and from the social auditor, 

Income Tax Registration

As per the type of NGO, you have to submit the following documents: -

For Section 8 companies: 

• Names and PANs of promoters and promoter groups 
• Names and PANs of directors 
• Names and PANs of companies or social enterprises where promoters or directors are involved 

For Trust and Society:  

• Names and PANs of trustees or governing body members 
• Names and PANs of companies or social enterprises where trustees or governing body members are involved.

Registration Agreement 

At the end NGOs have to compete the registration agreement as per the Annexure-IV.

Annual Disclosure/Compliances

In order to stay compliant, listed NGOs have to provide two type of disclosures and Annual Impact Report (AIR): -
Under Annul Disclosure, other general, governance and financial aspects of the NGOs and it must be submitted within the 60 days from the end of the financial year: -

General Aspects

• Organization Name
• Headquarters & Operations Location
• Vision/Mission/Purpose
• Organizational Goal
• Outreach
• Scale of Operation
• Top Donors and Investors
• Top Programs

Governance Aspects

• Ownership and Legal Form
• Governance Structure
• Governing Body Member
• Key Executives
• Meetings and Attendance
• Risk and Mitigation Plan
• Related Party Transactions
• Ethics and Conflicts of Interest 
• Remuneration Polices
• Stakeholder Grievance Redressal
• Compliance Management
• Registration Documents

Financial Aspects

• Financial Statement
• Auditor’s Report

Annual Impact Report (AIR)

The AIR has motive to report about the qualitative and quantitative aspects of the social impact that is generated by the NGO. This report must be submitted within the 90 days from the end of each financial year.
AIR Requirements

•    Strategic intent and Planning
•    Approach
•    Impact Score Card

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