SEBI Stretched Timeline To File Annual Disclosures For Social Enterprises

Markets regulator Sebi has extended the deadline for social enterprises registered with the Social Stock Exchange (SSE) to submit their annual disclosures and ‘annual impact report’ for the financial year 2023-24 to January 2025. 

Previously, these enterprises were required to submit their reports by October 31, 2024. The annual report must include details on governance, financials, and other general information, while the annual impact report should highlight both qualitative and quantitative aspects of the social impact generated.

“The outer timeline for annual disclosures under Regulation 91C(1) and annual impact report under Regulation 91E(1) of LODR (Listing Obligations and Disclosure Requirements) Regulations by Social Enterprises on Social Stock Exchange, for FY 2023-24 has been extended up to January 31, 2025,” Sebi said in a circular.

For Not-for-Profit Organizations (NPOs) that are registered but have not listed any securities, the report must outline significant activities, interventions, and programs.

In September 2023, Sebi mandated that social enterprises raising funds through the SSE must disclose their annual impact reports within 90 days after the fiscal year ends.

The SSE is a unique segment of India’s stock exchange that allows social enterprises to raise funds from the public. Eligible participants include both NPOs and for-profit social enterprises that prioritise social intent and impact, focusing on underserved or marginalised populations.

To qualify, social enterprises must engage in one or more of 16 specified activities, which include eradicating hunger, poverty, and inequality; promoting healthcare and education; enhancing employability and livelihoods; advocating for gender equality and empowering women and LGBTQIA+ communities; and supporting incubators for social enterprises.

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