Industry Odisha Bureau, May 30: In a bid to aid the ‘Not for Profit Organisations’ (NPOs) to raise funds for public welfare projects in a transparent and regulated manner, the Government of India (GoI) has reportedly accorded its seal of approval for the companies/corporates to invest up to 10% of their CSR funds through the Social Stock Exchange (SSE).
As per media reports, “The private companies/corporates would now be able to invest up to 10 per cent of their Corporate Social Responsibility (CSR) funds in zero coupon zero principal instruments issued by ‘Not for Profit Organisations’ (NPOs) through Social Stock Exchange (SSE) in accordance with the regulations laid down by the Securities and Exchange Board of India (SEBI).”
Notably, “Subscription to Zero Coupon Zero Principal Instruments on Social Stock Exchange” has reportedly been introduced by the Ministry of Corporate Affairs, while under the Companies Act – 2013, “Profitable companies/corporates are required to spend at least 2% of their three-year average net profit towards CSR activities in a particular fiscal year (FY).”
