Registering‍‍‍ at a Social Stock Exchange (SSE) allows eligible not-for-profit organizations to register a Social Stock Exchange product, and after fulfilling the requirements, to raise social purpose funds through regulated channels. Del NCR based NGOs and their like-charitable trusts, societies, and Section 8 companies go through a review process of the organization’s legal status, charitable activity, Tax registration, financial records, and governance, and social impact related documents.

Looking for a Social Stock Exchange registration consultant in Delhi NCR, India? Professional consultants can assist in identifying eligibility, preparing documentation, registration, and also handling compliance requirements on behalf of your organization

Quick FAQs About Social Stock Exchange Registration

What is a Social Stock Exchange registration?

Through Social Stock Exchange registration, eligible not-for-profit organizations get registered with SSE that is operated by a recognized stock exchange, depending on the SEBI and other exchange requirements they might have.

Social Stock Exchange system aims at linking social enterprises to a source of funding by setting-up regulated mechanisms, and at the same, encouraging transparency and reports of social impact.

Who can register with the Social Stock Exchange?

Eligible not-for-profit organizations include charitable trusts that qualify, societies, and Section 8 companies. They need to meet the necessary requirements.

For instance, to register on NSE, the NPO has to produce its registration certificate and other certified documents.

Is it mandatory to have a valid 80G certificate when filing a registration as SSE?

A valid 80G registration is part of NSE’s current NPO registration checklist. Before carrying any operation, an organization should confirm that its 80G certificate meets the applicable requirements.

Are 12A or 12AB registration documents necessarily requirements for SSE registration?

NSE’s registration list includes an NPO’s registration certificate under Section 12A/12AA/12AB of the Income Tax Act along with the valid requirement.

If I register with SSE does it automatically mean that an NGO would be ‍‍‍listed?

No.

‍‍‍ Registration and fundraising/listing are different stages of the procedure. Before an organization starts the process for raising funds through permitted SSE mechanisms, it must first comply fully with the registration requirements.

Can an NGO in Delhi apply for SSE registration?

A registered NPO in Delhi which is eligible can opt for registration through SSE. An NPO can similarly check their qualifications for registration in cities like Noida, Ghaziabad, Gurugram, Faridabad, and Greater Noida.

What Is the Social Stock Exchange?.

Social Stock Exchange is a regulated mechanism that supports raising of funds for organizations and/or enterprises working on acknowledged social issues.

According to NSE, the SSE will be a place where socially responsible entrepreneurs and philanthropists get together and through it fundraising and company growth will be possible and at the same time social impact reporting standards would be maintained.

If a social organisation NGO qualifies under the conditions then registering with SSE could help to open doors of the institution and impact funding.

Registration, however, should not be confused or understood as a guarantee of either fundraising or donor participation. The organization should still be able to meet, if necessary, the requirements for regulatory, financial, governance, disclosure, reporting of impact, and other requirements.

Eligibility for Social Stock Exchange Registration

NPOs that are interested in SSE registration should carry out an analysis of their eligibility for it before submitting the application.

\par \par \p>In the light of framework provided for the particular sector, the entity may be required to show evidence of its:

\begin{itemize}\item extbf{Registered} legally under a recognized NPO framework.\item The charity’s or the NGO’s purpose must comply with a specific set of goals.\item Registered Charitable Deductions (Section 12A/12AB)\item Charitable Income Deductions (Section 80G)\item Established period of time as per the regulations.\item Certified financial accounts.\item The structure of the organization is such that it has governance.\item Activities of social impact must be in one of the areas that are eligible.\item Necessary declarations and confirmations.\item Full conformity to SSE and SEBI ‍‍‍requirements.\end{itemize}

Documents‍‍‍ Required for Registration at Social Stock Exchange (SSE)

Having the right documentation prepared properly is one of the most important activities.

The National Securities Exchange checklist consists of items like:

• A signed application form.Copy of NPO Registration Certificate.Trust Deed, Memorandum and Articles of Association, By-laws, or the governing document which pertains to the organization.Registration certificate of 12A/12AA/12AB.Active 80G registration.Audited financial statements and fund-flow statement of the previous three financial years.An executive-body/management-body resolution authorizing SSE application.NPO’s signed agreement.Signed auditors/social auditor’s/auditing auditor’s letters.Registration Contract.Further details/documents in case a specific issue arise at the exchange side.

Note that this is based on the most recent publication of the NSE NPO registration checklist, and you should make sure to compare this against the latest applicable provisions before making the filing.

Social Stock Exchange

Registration Process

Step 1: Eligibility Check

Firstly, it is necessary to find out whether the entity meets the various criteria like legal structure, date of incorporation, purpose of establishment, nature of activities, tax registration certificate, financial record, and so on.

Step 2: Compliance Check

As a compliance partner, the consultant can help identify any missing items by checking the following documents: registrations under sections12A/12AB,80G,pans,financial statements, statutory reports,governing documents, and the operation logs of the ‍‍‍entity.

Step‍‍‍ 3: Document Preparation

According to the appropriate SSE checklist, the necessary application forms, declarations, confirmations, resolutions, financial data, and supporting documents are gathered.

Step 4: Application Submission

With all documents and information in order, the application is handed over to the respective Social Stock Exchange.

Step 5: Query and Clarification Handling

During the process, the stock exchange may raise questions or request clarifications. It is upon the organization responsible to furnish the information and documents required for such queries within the timelines ‍‍‍mentioned.

Step‍‍‍ 6: SSE Registration

After the organization satisfies all the requirements, the concerned department will process the SSE registration application. The final result of such registration will depend entirely upon the exchange’s guidelines and their subsequent approval of it.

Step 7: Ongoing Compliance and Renewal

SSE registration is not equivalent to the organization not being in any way released from continuous compliance obligations of the organization. The checklist for SSE registration published by NSE also includesalso includes those matters relevant for a renewal. The checklist says that organizations might have to give the confirmation about compliance and the changes.

Local Example: NGO in Noida Pursuing SSE Registration

A Section 8 company based in Sector 62, Noida, that is doing work with the underprivileged population to raise their employment level through the training programs is a typical example of the case.

• Organizations before applying for SSE registration shall go through various aspects such as:

They may check:

• Certificates & registration of a Section 8 company
• 12AB registration
• Letter of 80G approval
• Annual audit statements (accounts)
• Flow of funds of the company
• Details of Governing Body
• Records related to the activities of social impact of the company
• Legitimacy of Compliance
• Documents to be provided by SSE

In the absence of SSE registration, an NPO may also go on and do their work. However, such an organization has to ensure that all the required compliances related to their operations are made correctly.

Similar reviews can also be initiated for charitable trusts (registered under 12A and 80G) in Delhi and society/associations in Ghaziabad and Section 8 companies located in Faridabad or Gurugram, respectively. Such a thorough assessment can help them identify any areas of non-compliance.

Why Employ a Delhi NCR Social Stock Exchange Registration Consultant?

SSE registration entails gathering legal, taxing, financial, governance, and social-impact aspects and then integrating them all so that the company is ready to submit its information. A consultant has that expertise and the ability not only to understand what’s required but also to put together all the material for it.

The consultant’s role could be summarized as follows:

• Eligibility for SSE
• Review on NPO registration
• 12AB and 80G compliance
• Documentation checklist
• Help prepare the application
• Aiding the preparation of resolutions
• Overseeing the financial documents (statement)
• Social activity records
• Assist the company with exchange queries
• Become a guide for all registration and renewal processes
• Giving guidance about legal compliance

For example, an NGO located in Delhi is likely to benefit the most from getting consultancy help in the matters of getting their documentation done, tax registrations, financial statements, and social-impact reporting together as a complete ‍‍‍package.

SSE‍‍‍ Registration vs. Fundraising

A major takeaway for NGOs is not confounding registration with raising funds.

An NPO could have to go through the relevant SSE registration first. If later on it wants to raise funds through the SSE platform, it might be subject to further requirements, submissions, disclosures, approvals, etc., instruments, and regulations.

Owing to this, organizations must plan for their SSE involvement through several phases:

Eligibility → Registration → Compliance → Fundraising Preparation → Fundraising/Listing Procedure → Ongoing Reporting

In the end, SSE registration is a requirement only, but depending on the fundraising strategy of the organization and its internal structure, there might be a need to also comply with other fundraising-related procedures or standards.

Why Social Stock Exchange Compliance Is Important

Transparency is an essential part of the SSE model. Organizations need to keep their financial accounts up-to-date and publicly available, and to demonstrate clearly how they set social Objectives of the project, activities, and governance, to be the impact of their work.

NSE keeps a list of NPOs that are registered with its Social Stock Exchange, which shows that the SSE registration is an actively applied part of the system and not just a new theoretical model for fundraising.

However, NSE also makes it very clear that being listed on its SSE does not mean that the financial or any other aspect of the business is sound, and that it is the donors’ responsibility to do their own investigation.

Best Social Stock Exchange Registration Consultant in Delhi NCR, India

NGO, charity, trust, and Section 8 company, located in Delhi NCR, considering registering with the Social Stock Exchange, should first carry out an eligibility and documentation review.

Consultants can provide assistance in checking the status, preparing and submitting all the documents required for registration, and in case, there is any follow-up that needs to be done, they can help with it too. They also handle such matters as coordination of submissions for review, clarifying questions raised, and explaining what the compliance requirements are.

Even if your company is situated in Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, or Faridabad, well-planned groundwork can greatly assist in making your company’s SSE registration process more organized and ‍‍‍efficient.

Final‍‍‍ Takeaway

Registration on Social Stock Exchange is a regulatory procedure for non-profit companies that desire membership of an SSE. It involves not only the submission of a basic NGO registration form but also several other documents. Before filing, a nonprofit ought to double-check if it has the required legal certificate, 12A/12AB certificate, 80G permission, last year’s audited accounts, governance manuals, social initiatives, and SSE related ‍‍‍requirements.