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Sebi Social Stock Exchange Rules: Impact Auditors in Focus

26 September 20251 min read
BANKING & FINANCESebi Social StockExchange Rules:Impact Auditors inFocus26 September 2025safalsetu.com

Why in the news

Sebi revised Social Stock Exchange compliance, putting social impact auditors in the spotlight.

Key facts

  • The 19 September 2025 circular requires Annual Impact Report audits only from enterprises that have raised money on the SSE.
  • Breaches can cost ₹1 lakh daily up to ₹1 crore, with delisting and lost tax benefits.
  • Auditors link NGO work to Sebi-defined indicators, using SROI and ESG ratings.
SSE pointDetail
Launched2022
NGO instrumentZero Coupon Zero Principal (ZCZP)
Registered NGOs200+ (May 2025), BSE and NSE

Concerns

  • Limited auditor capacity, standardisation gaps, data and field verification costs, hard for small NGOs.

Exam angle

  • Regulator: Sebi; instrument: ZCZP.

Test yourself

1. Which instrument can NGOs list on the Social Stock Exchange instead of shares?

NGOs can list ZCZP instruments.

2. In which year was the Social Stock Exchange launched according to these notes?

SSE was launched in 2022.

3. Mandatory Annual Impact Report audits now apply only to which entities?

The 19 September 2025 circular restricts AIR audits to fund-raising entities.

This topic is part of Daily Current Affairs 25 & 26 September 2025 (15 topics).

All topics of the dayDay quizSeptember 2025

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