Registration of NPO on SSE

 Registration of NPO

Listing/Issuance of ZCZP (Zero Coupon Zero Principle) instruments by NPOs - Social Stock Exchange is a separate segment of recognised stock exchange that enables Social Enterprises which are NPOs to raise funds through the issuance and listing of ZCZP instruments.

• As a first step, NPO has to register itself with the Social Stock Exchange. Only a registered NPO is eligible for listing its Zero Coupon Zero Principle Instruments (ZCZP).
• Registration is valid for a period of one year and renewable after period of One Year. Hence, registered NPO can issue and list ZCZP within the registration validity period. However it should be noted that listing is not mandatory for a registered NPO.

 Benefits of Registration of NPO with Stock exchange.

Registration provides visibility to the Social Entity and a common platform for the investors/donors to meet.

• Registration equips social enterprises with the readiness to raise funds when a donor or investor with a similar mission is found, facilitating seamless connections.
• The SSE charges minimal fees for registration and listing, reducing costs for both social enterprises and making investment feasible to the investors/donors.
• Through registration, social enterprises become more compliant and ensure a strong focus on social impact.

Registration process of NPO

The NPO needs to register themselves on the SME platforms of the stock exchanges, BSE SSE and NSE SSE. NPOs seeking to register must apply separately to each platform, adhering to the specific checklists and guidelines specified by both exchanges. Compliance with these distinct registration procedures is essential to ensure successful registration and listing on both the BSE and NSE. Registration is valid for a period of one year.

 (1) Registration Process of SSE on BSE

NPOs seeking registration on the BSE SSE must submit a formal application on their official letterhead to the BSE SSE. This application shall be accompanied by the required documents listed below.

• Certificate of Constitution of NPO
• MOA, AOA, Trust Deed, Bye laws of or any other Governing document
• Copy of PAN, TAN, GST
• ITR of last 3 years
• Audited Financial Statements including Auditors Report for last 3 Financial Years.
• 80G registration under Income Tax Act
• Registration Certificate under the Income Tax Act, 1961 under section 12AB (along with previous registrations under 12A/12AA, if applicable) and/or 10 (23C).

• Annexure I to be given on the letter head of the entity contains the confirmation by the entity that the entity is formed and registered under Acts such as Indian Trusts Act, 1882, Societies Registration Act etc.
• Annexure II is the certificate of Chartered Accountant stating annual spending, past FY funding, filled Annual Returns within Due Dates, and other information as required of the NPO.
• Annexure III is the Confirmation of eligibility criteria for being identified as Social Enterprise.
• Annexure IV is the document that contains the vision statement, Mission Statement, Address, NGO Darpan Registration* details, its governing Board, Number of Staff, Details of Statutory Auditor, representative letter, Key projects handled, Social Audit Reports/ Impact Assessment Reports for projects (if any)
• Details of Fee
• For the reference of readers link for the Annexure is BSE SSE (bsesocialstockexchange.com).

**The NGO Darpan (NGO-PS) is a portal provided by the NITI Aayog that connects NGOs, voluntary organizations, and key government ministries. It aims to enhance collaboration, efficiency, transparency, and accountability between the government and the voluntary sector. The portal helps NGOs and the government work together more effectively and offers up-to-date information on new and ongoing government projects and programs, fostering better communication and partnership.

 (2) Registration process of SSE on NSE

NPOs seeking registration on NSE SSE must submit a formal application on their official letterhead to the NSE SSE. This application should be accompanied by the required documents listed below.

• Application as per Annexure I contains the information of NPO like Name, Address and other information. (PDF of annexures to be attached with this)
• Certificate of Constitution under the relevant Act such as public trust statue of the relevant state, Societies Registration Act, 1860, Indian Trusts Act, 1882, Companies Act, 2013
• NPO must have been registered at least 3 years prior to the date of application
• MOA, AOA, Trust Deed, Bye laws of or any other Governing document
• Registration Certificate under section 12A/12AA/12AB under Income Tax Act, 1961. Please note that the registration certificate should be valid for at least next 12 months from date of application
• 80G registration under Income Tax Act
• Last three financial years’ Audited financial statements of the NPO along with Fund Flow statement.
• Annual Reports for last 3 financial years as well, in case the Entity is a Section 8 Company.
• Resolution for registration on Social Stock Exchange along with the Annexures given by the NSE for the registration.
• Annexure I is the format of application in which the NPO can apply for its registration along with the fee.
• Annexure II is the undertaking from the NPO on their letterhead Stating about the eligibility of the NPO to be identified as Social Enterprise and information about its Promoters.
• Annexure III is the undertaking from the Social Auditor or Statutory Auditor stating compliances of Regulation 292E of SEBI (ICDR) Regulations, 2018, Information regarding the Annual Spending and about the funding of past FY of the entity.