2 months ago
NPO and SSE ( Social stock exchange) what are NPO( non profit organisations)? these are the organisations that are not driven by profit but by dedication to a given cause . because of this , they receive tax-exempt status from the federal government. Note: NGO and NPO are very often used interchangeably , NGO are seperate from government but require government funding. most NGO are non profit . It includes hospitals, universities, national charities, churches, and foundations.NPO can not be associated with political, corporate groups neither should receive their funding from any of them. //////////////////////////////////////////////////////////////////////////////////////////////// The SSE would function as a separate segment within the existing stock exchange and help social enterprises raise funds from the public through its mechanism. It would serve as a medium for enterprises to seek finance for their social initiatives, acquire visibility and provide increased transparency about fund mobilisation and utilisation. Any non-profit organisation (NPO) or for-profit social enterprise (FPSEs) that establishes the primacy of social intent would be recognised as a SE, which will make it eligible to be registered or listed on the SSE. 17 plausible criteria under SEBI’s ICDR Regulations, 2018 include serving to eradicate hunger, poverty, malnutrition, promoting education, employability, equality, and environmental sustainability among others. //////////////////////////////////////////////////////////////////////////////////////////////////////// how do SSE raise money? NPOs can raise money either through issuance of Zero Coupon Zero Principal (ZCZP) Instruments from private placement or public issue, or donations from mutual funds. ZCZP bonds differ from conventional bonds in the sense that it entails zero coupon and no principal payment at maturity. For ZCZP issuance, the minimum issue size is presently prescribed as Rs 1 crore and minimum application size for subscription at Rs 2 lakhs.
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