Overview of Social Stock Exchange (SSE)

The Social Stock Exchange (SSE) is not a conventional stock market. Instead, it is an information portal under the regulatory oversight of SEBI, designed exclusively for organizations committed to creating measurable social impact. Introduced in 2021 and launched within India’s top stock exchanges such as NSE and BSE, the SSE allows social enterprises to list their activities and raise capital through instruments like Zero Coupon Zero Principal (ZCZP) bonds, donations, and social impact investing.

Key Objectives:

• Facilitate fund-raising for genuine social causes

• Promote transparency and accountability among social enterprises

• Enable long-term sustainability and credibility for NPOs and FPSEs

• Offer tax advantages and compliance credibility to donors

With Taaza Consultancy’s expertise, navigating this new and specialized ecosystem becomes easier, faster, and fully compliant.

Types of Organizations Eligible for SSE Registration

The Social Stock Exchange broadly caters to two categories of social entities:

1. Non-Profit Organizations (NPOs)

These are charitable institutions working towards social betterment without profit motives. They can raise funds through:

• Donations

• Grants

• Issuance of ZCZP Instruments (Zero Coupon Zero Principal Bonds)

2. For-Profit Social Enterprises (FPSEs)

These are businesses with profit motives that incorporate measurable social impact into their operations. They can raise funds through:

• Equity

• Debt

• Impact investments

Both these entity types must meet stringent regulatory and impact assessment criteria for SSE registration. With our tailored consultancy support, Taaza ensures full eligibility alignment.

Eligibility Criteria for SSE Registration

Eligibility for registering on the SSE involves a robust list of requirements to ensure that only credible and impactful organizations are featured. Below is a detailed look at the criteria for Non-Profit Organizations (NPOs):

For NPOs:

• Must be registered as a Trust, Society, or Section 8 Company

• Must have a valid 80G and 12A certificate

• Minimum operational track record of 3 years

• Minimum annual spending of ₹50 lakhs in the last financial year

• Minimum funding received of ₹10 lakhs in the past financial year

• Must undertake activities aligned with at least one of the 17 Sustainable Development Goals (SDGs)

For FPSEs:

• Must be a Company registered under the Companies Act

• Must clearly define and disclose measurable social impact metrics

• Should earmark at least 67% of revenue towards social objectives

Taaza Consultancy conducts a detailed eligibility assessment to ensure smooth registration.

Documents Required for SSE Registration

Proper documentation is the backbone of a successful SSE registration. Here’s a list of critical documents required:

For NPOs:

• Registration certificate (Trust, Society, or Section 8)

• PAN and TAN of the organization

• Audited financials for last 3 years

• 80G and 12A registration copies

• Details of Board of Trustees or Governing Members

• Statement of work aligned with SDGs

• Annual Reports, CSR Reports (if applicable)

• Bank Account Statements

• Details of past and present donors/funding sources

• Impact Assessment Reports

• DARPAN ID (if available)

For FPSEs:

• Certificate of Incorporation

• PAN, TAN, and GST registration

• MOA and AOA

• Audited financials (last 3 years)

• CSR Impact and Revenue Breakdown

• ESG (Environmental, Social, Governance) disclosures

• Details of impact metrics

Taaza Consultancy takes care of verification, compilation, and error-free submission of all necessary documentation.

Step-by-Step Process for Registration on SSE

Taaza Consultancy simplifies the complex SSE registration process through a 7-step structured roadmap:

1. Initial Consultation & Entity Assessment
   We evaluate your organization’s eligibility and determine the most suitable structure for registration.

2. Documentation Collection and Gap Analysis
   Our team compiles all documents, identifies missing data, and advises on corrective measures.

3. Registration on SSE Portal
   We assist in creating a secure profile on the SSE platform (under NSE/BSE).

4. Preparation of Impact Assessment Framework
   We help you align your activities with SEBI’s social impact measurement standards.

5. Filing Application with Exchange
   Application is filed along with all requisite forms and compliance declarations.

6. SEBI Review & Clarifications
   We coordinate responses to any clarifications or queries raised by the exchange or SEBI.

7. Listing Confirmation & Visibility
   Once approved, your enterprise is listed and visible to donors and impact investors.

Fees for Registration on SSE

SSE registration involves both direct and indirect costs. Below is an approximate fee structure:

• Consultancy Fees (Taaza) – ₹25,000 to ₹50,000 (based on complexity)

• Exchange Filing Fees – ₹5,000 to ₹10,000 (varies with exchange)

• Impact Assessment Costs – ₹15,000 to ₹30,000 (third-party evaluators)

• Compliance Setup (Optional) – ₹10,000 onwards

We offer customized packages to meet the specific needs of NGOs, Section 8 companies, and FPSEs.

Benefits of Registering on SSE

1. Access to Credible Funding Sources
   Gain visibility among a community of social investors, donors, and CSR contributors.

2. Enhanced Credibility & Trust
   SEBI-monitored registration increases your social enterprise’s accountability and transparency.

3. Structured Compliance & Impact Measurement
   Improve internal governance with documented social return metrics.

4. Tax Benefits for Donors
   Attract more funding due to the tax-deductible nature of SSE-listed donations.

5. Networking & Partnership Opportunities
   Collaborate with like-minded organizations, corporates, and institutions working in similar domains.

Comparison: SSE vs Traditional Fundraising

SSE Certificate of Registration

Upon successful registration, your entity receives a Certificate of Registration from the Social Stock Exchange. This certificate:

• Legitimizes your listing on the SSE

• Enables fundraising through the SSE platform

• Acts as an official recognition of your social impact journey

• Is shareable with CSR partners, donors, and funding agencies