SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) (LODR) (FIFTH AMENDMENT) REGULATIONS, 2022
F. No. SEBI/LAD-NRO/GN/2022/88.—In exercise of the powers conferred by section 11, subsection (2) of section 11A and section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992) read with section 31 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, namely:-
- These regulations may be called the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Fifth Amendment) Regulations, 2022.
- They shall come into force on the date of their publication in the Official Gazette.
- In the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015—
I. In regulation 2, in sub-regulation (1),
i. in clause (h), after the words and symbol “mutual funds,” and before the words “and any other”, the words “Zero Coupon Zero Principal Instruments” shall be inserted.
ii. after clause (zn), the following clause (zo) shall be inserted namely,”
“(zo) the expressions “For Profit Social Enterprise”, “Not for Profit Organization”, “Social Enterprise”, “Social Stock Exchange”, “draft fund raising document”, “final fund raising document”, “fund raising document”, “Social Auditor” and “Social Audit Firm” shall have the same meaning as assigned to them in the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulation, 2018;”
II. after Chapter IX and before Chapter X, the following Chapter IX-A shall be inserted namely,—
“CHAPTER IX-A
OBLIGATIONS OF SOCIAL ENTERPRISES
Applicability
91A. The provisions of this Chapter shall apply to:
(a) a For Profit Social Enterprise whose designated securities are listed on the applicable segment of the Stock Exchange(s);
(b) a Not for Profit Organization that is registered on the Social Stock Exchange(s);
Disclosures by a For Profit Social Enterprise.
91B. A For Profit Social Enterprise whose designated securities are listed on the Stock Exchange(s) shall comply with the disclosure requirements contained in these regulations with respect to issuers whose specified securities are listed on the Main Board or the SME Exchange or the Innovators Growth Platform, as the case may be.
Disclosures by a Not for Profit Organization.
91C. (1) A Not for Profit Organization registered on the Social Stock Exchange(s), including a Not for Profit Organization whose designated securities are listed on the Social Stock Exchange(s), shall be required to make annual disclosures to the Social Stock Exchange(s) on matters specified by the Board, within 60 days from the end of the financial year or within such period as may be specified by the Board.
(2) In addition to the disclosures referred in sub-regulation (1), the Social Stock Exchange(s) may specify matters that shall be disclosed by the Not for Profit Organization on an annual basis. Intimations and disclosures by Social Enterprise of events or information to Social Stock Exchange(s) or Stock Exchange(s)
91D. (1) A Social Enterprise whose designated securities are listed on the Social Stock Exchange(s) or the Stock Exchange(s), as the case may be, shall frame a policy for determination of materiality, duly approved by its board or management, as the case may be, which shall be disclosed on the Social Stock Exchange(s) or the Stock Exchange(s).
(2) The board and management of the Social Enterprise shall authorize one or more of its Key Managerial Personnel for the purpose of determining materiality of an event or information and for the purpose of making disclosures to the Social Stock Exchange(s) or the Stock Exchange(s), as the case may be, under this regulation and the contact details of such personnel shall also be disclosed to the Social Stock Exchange(s) or the Stock Exchange(s).
(3) A Social Enterprise whose designated securities are listed on the Social Stock Exchange(s) or the
Stock Exchange(s), as the case may be, shall disclose to the Social Stock Exchange(s) or the Stock
Exchange(s) where it is registered or has listed its specified securities, as the case may be, any event
that may have a material impact on the planned achievement of outputs or outcomes.
(4) The disclosure referred in sub-regulation (3) shall be made as soon as reasonably possible but not later than seven days or within such period as may be specified by the Board, from the occurrence of the event and shall comprise details of the event including the potential impact of the event and the steps being taken by the Social Enterprise to address the same.
(5) The Social Enterprise shall provide updates on a regular basis along with relevant explanations in respect of the disclosures required in sub-regulation (3) till the time the concerned event remains material.
(6) The Social Enterprise shall provide specific and adequate reply to all queries raised by the Social Stock Exchange(s) or the Stock Exchange(s), as the case may be, with respect to any events or information:
Provided that the Social Stock Exchange(s) or the Stock Exchange(s), as the case may be, shall disseminate the information and clarification as soon as reasonably practicable.
(7) The Social Enterprise may suo moto confirm or deny any reported event or information to Social Stock Exchange(s) or the Stock Exchange(s), as the case may be.
(8) The Social Enterprise shall disclose on its website all such events or information which have been disclosed to the Social Stock Exchange(s) or the Stock Exchange(s), as the case may be, under this regulation.
Disclosures by a Social Enterprise in respect of social impact
91E. (1) A Social Enterprise, which is either registered with or has raised funds through a Social Stock Exchange or a Stock Exchange, as the case may be, shall be required to submit an annual impact report to the Social Stock Exchange or the Stock Exchange in the format specified by the Board from time to time.
(2) The annual impact report shall be audited by a Social Audit Firm employing Social Auditor.
(3) The Social Stock Exchange(s) may specify parameters, in addition to those specified by the Board, which shall be required to be disclosed by a Social Enterprise on an annual basis.
Statement of utilisation of funds
91F. (1) A listed Not for Profit Organization shall submit to the Social Stock Exchange(s) the
following statement in respect of utilisation of the funds raised, on a quarterly basis:-
(a) category-wise amount of monies raised;
(b) category-wise amount of monies utilised;
(c) balance amount remaining unutilised.
(2) The unutilised amount shall be kept in a separate bank account and shall not be co-mingled with other funds.
(3) The statement required under sub-regulation (1) shall be given till the time the issue proceeds have been fully utilised or the purpose for which they were raised, has been achieved.”
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