Sebi Tightens Social Stock Exchange Rules To Raise Governance Standards

The Securities and Exchange Board of India (Sebi) has issued fresh guidelines for the Social Stock Exchange (SSE), sharpening the eligibility norms for not-for-profit organisations (NPOs) and putting in place tougher disclosure and reporting requirements. The changes were notified through a circular dated September 19, 2025.

Clearer Rules For Registration

NPOs that wish to join the SSE will now need to have a valid registration certificate that extends at least 12 months from the date of application. Sebi has also clarified the forms of organisations that qualify: charitable trusts under the Indian Trusts Act, 1882, public trusts registered under state laws, trusts under the Indian Registration Act, 1908, charitable societies, and Section 8 companies formed under the Companies Act, 2013.

The regulator’s move aims to bring greater consistency in the types of entities that can seek registration and ensures that only well-established organisations with a recognised legal base are allowed onto the platform.

Annual Filings And Impact Reports

The new framework significantly expands the disclosure obligations for NPOs and social enterprises. Those registered with or raising money through the SSE must now file detailed information on an annual basis.

Within 60 days of the financial year’s close, NPOs will be required to disclose their vision, mission, scale of operations, governance structure, key risks and mitigation measures, and details of grievance redressal. By October 31—or by the due date for filing income tax returns, whichever is later—they must also provide information on their outreach, top donors, leading programmes, related-party transactions, audited financial statements, and utilisation of funds.

In addition, every social enterprise that raises funds through the SSE must submit an Annual Impact Report (AIR). This report, which will need to be independently assessed by Social Impact Assessors, must highlight the organisation’s significant programmes and show that at least two-thirds of its programme expenditure in the previous year has been covered. NPOs that are registered but have not listed securities may self-report their AIRs, though they are still expected to follow the same standards of clarity and transparency.

A Push For Accountability

By tightening entry requirements and insisting on greater transparency, Sebi is hoping to build confidence among donors and investors and strengthen the credibility of the SSE as a fundraising channel. Stock exchanges and depositories have been directed to make the necessary changes to their systems and bylaws immediately.

The changes reflect the regulator’s wider effort to bring rigour to social finance and ensure that funds mobilised for social causes are properly accounted for and demonstrate measurable impact.