On July 31, 2024, the National Stock Exchange of India (NSE) issued a circular (Ref No: NSE/CML/2024/22) addressing Social Enterprises listed on the Social Stock Exchange (SSE). This circular outlines new reporting requirements and formats for the Annual Disclosures and Annual Impact Report, reflecting updates approved by the Social Stock Exchange Advisory Committee (SSEAC). These changes are crucial for ensuring transparency and consistency in the reporting of social enterprises, and they align with guidelines set by SEBI’s circular dated May 27, 2024.
The primary focus of the NSE circular is to streamline and standardize the reporting process for Social Enterprises listed on the SSE. The key updates include:
1. Revised Reporting Forms:
- Form 1A: This form covers general and governance disclosures not dependent on statutory financial audits. It aims to capture non-financial aspects of the enterprise’s operations and governance.
- Form 1B: This expanded form includes disclosures related to general, governance, and financial aspects, referencing audited financial statements. It also encompasses the Annual Social Impact Report, detailing significant social projects not funded through SSE listings.
- Form 2.1: Specifically for social projects funded through SSE-listed securities, this form requires an Annual Social Impact Report, focusing on the impact of these projects.
- Guiding Framework on Logic Model: This framework provides a structured approach for integrating the Theory of Change into projects listed on the SSE, enhancing the clarity and effectiveness of social impact reporting.
2. Submission Deadlines: The circular aligns with SEBI’s extended deadline for Annual Disclosures and Annual Impact Reports, now due by October 31, 2024. This extension provides social enterprises additional time to prepare and submit comprehensive reports reflecting the financial year ending March 31, 2024.
3. Implementation and Compliance: Social Enterprises must adhere to the revised formats for disclosures, ensuring accuracy and compliance with the updated requirements. The NSE emphasizes the importance of careful preparation and submission of these documents to maintain transparency and uphold the integrity of the SSE.
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National Stock Exchange of India
Circular Ref No: NSE/CML/2024/22 Date: July 31, 2024
To,
The Social Enterprises- listed and registered on Social Stock Exchange (‘SSE’)
Subject: Reporting Forms for Social Enterprises listed and registered on SSE
SEBI vide its circular no. SEBI/HO/CFD/PoD-1/P/CIR/2024/0059 dated May 27, 2024, titled ‘Timelines for disclosures by Social Enterprises on Social Stock Exchange (“SSE”) for FY 2023-24’, had extended the timeline for the disclosure of the Annual Disclosures and Annual Impact Report by October 31, 2024.
The Social Stock Exchange Advisory Committee (SSEAC) in its meeting had proposed and approved the revisions in the formats for the filing of the Annual Disclosures and Annual Impact Report along with the guiding framework on logic model for integrating theory of change in projects to be listed in Social Stock Exchange, as per below:
a) Form 1A: Annual Self-Disclosure Report (covering general and governance disclosure aspects that are not dependent on statutory financial audit).
b) Form 1B: Annual Self-Disclosure Report (covering disclosures of general, governance and finance aspects that have a reference to audited financial statements) and Annual Social Impact Report by Social Enterprise (Report to be prepared Annually by Social Enterprises for significant Social Projects/programs not funded through Listing on SSE).
c) Form 2.1: Annual Social Impact Report by Social Enterprise (Report to be prepared Annually by Social Enterprises for Social Projects/programs funded by security listed on SSE).
d) Guiding Framework on Logic Model for integrating Theory of Change in projects to be listed in Social Stock Exchange
Enclosed are the formats of the aforesaid forms for the disclosure. The listed and registered Social Enterprises are hereby requested to take note of the revised formats and ensure that the aforesaid disclosures are submitted in the revised formats for the financial year ended March 31, 2024, onwards.
The entities are requested to take note of the aforementioned requirements and exercise abundant precaution while filing the disclosure/announcement on the aforesaid subjects.
Yours faithfully,
For National Stock Exchange of India Limited
Dhaval Shah
Senior Manager
Encl: As Above
Form 1A Annual Self-Disclosures Report
Form 1B.4 : Statement of Compliance
Form 1B.4 Statement of Compliance
Guiding Framework on Logic Model for integrating Theory of Change in projects to be listed in Social Stock Exchange
