SEBI Regulations 2022
SEBI Regulations 2022 – Regulations for the third amendment to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2022
A new chapter X-A dealing with social stock exchange has been notified by the Securities and Exchange Board of India’s publication of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Third Amendment) Regulations, 2022 on July 25, 2022.
SEBI Regulations 2022 – Key Ideas
(a) an organization that is not for profit and solely wants to register with a social stock exchange;
(b) an organization that is not for profit seeking to register and raise money via a social stock exchange;
(c) a For-Profit Social Enterprise that is attempting to qualify as a Social Enterprise in accordance with the guidelines set out in this Chapter.
The term “Social Stock Exchange” refers to a section of a reputable stock exchange with national trading terminals that is authorized to register not-for-profit organizations and/or list the securities they issue in accordance with the rules set forth in these laws.
Only institutional and non-institutional investors will have access to a social stock exchange: With the caveat that the Board may approve access for other classes of investors to the Social Stock Exchange as it sees suitable.
A Social Stock Exchange Governing Council must be established by each Social Stock Exchange to oversee operations. The Board will occasionally specify the Governing Council’s composition and scope of authority.
Prior to raising money through a social stock exchange, Not for Profit Organizations are required to register there. However, a Not for Profit Organization may elect to register on a social stock exchange without raising money through it. The Board will occasionally specify the minimal conditions for registration of a Not for Profit Organization on a Social Stock Exchange.