Sebi seeks changes to CSR rules to include donations via social stock exchange

The Securities and Exchange Board of India (SEBI) has proposed amending the Companies Act, 2013, to allow companies to fulfill their CSR mandates by donating through Social Stock Exchanges (SSEs). Currently, firms can only donate off-market for CSR activities. \r

The proposed change, requiring an amendment to Schedule VII, would include SSE donations under CSR. SEBI’s Kamlesh Chandra Varshney highlighted this at an NSE seminar. SSEs, introduced in the FY20 budget, enable non-profits to raise funds. Eight non-profits are listed on the NSE SSE. \r

SEBI has also mandated social impact reports for listed entities, to be audited and certified. This move aims to boost philanthropy, though compliance costs and lack of financial returns pose challenges for non-profits and donors.