Social Stock Exchange concept developed by SEBI
SEBI recently developed the concept of Social Stock Exchange.
- Social Stock Exchange (SSE) is a separate segment of the existing Stock Exchange, that can help Social Enterprise(s) to introduce funds from general public via stock exchange system. Social Stock Exchange will act as a medium between fund providers & Social Enterprises and that can support them to select such kind of organizations which are making measurable social impact and reporting of such kind of social impact.
- According to Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, “Social Auditor” means an person registered with a self-regulatory organization under the Institute of Chartered Accountants of India or such other agency, as may be prescribed by Securities and Exchange Board of India, who holds a valid Social audit professional Certification offered by National Institute of Securities Market.
Institute of Social Auditors of India is a Self-regulatory organization.
- The Institute of Social Auditors of India has been established with the main goal of establishing itself as a leading institution for the regulation & development of Social Auditors in a independent, transparent & public interest manner.
What is the meaning of Social Audit?
- Concept of Social Audit refers to basic social impact evaluation & assessment of a program/project executed by Social Enterprises via an complete independent examination by Social audit professional who is a certified.
What are the eligibility conditions to take up Social audit professional Certification?
Financial auditors(Like Statutory, internal Auditors or forensic auditors) can full fill the Eligibility conditions for social auditors whom auditors have successfully completed a course at the National Institute of Securities Markets(NISM) & received a certified Social audit professional Certification of completion.
Other person who wishes to be become as social auditors than they required to be have at least one eligibility conditions mentioned here under:
- Successfully Complete the National Institute of Securities Market certificate course or
- Graduates from universities recognized by University Grants Commission with six years minimum of Social experience in the development sector, or
- Post-graduates from universities recognized by the University Grants Commission with three years minimum of experience in the Social development sector, or
- Qualified CMA or any other persons with suitable accreditations with 6 years of minimum experience in the Social development sector. or
ICAI setting up ‘Institute of Social Auditors of India (ISAI)’, known as SRO
- The Institute of Chartered Accountants of India has set up a ‘Self-Regulatory Organization in the named as the ‘Institute of Social Auditors of India ’ for the objective of capacity building of ‘social auditors’ in same line with ‘social stock exchange’ requirements notified by the Securities and Exchange Board of India on 25/07/2022.
- Institute of Social Auditors of India will be a leading institution for the development of an ethical, independent & certified profession of social auditors, catering to the specific requirement & expectations of stakeholders. Institute of Social Auditors of India will regulate & monitor functioning of social auditors under the social stock exchanges system & mechanism notified by Securities and Exchange Board of India.
ICAI is proposed to be set up as a Section 8 Co under the aegis of ICAI.
- Securities and Exchange Board of India announced recently Regulations for capital raising by ‘Social Enterprises’ (both ‘not for profit’ & ‘for profit’) at ‘Social Stock Exchange’ in India.
- Accordingly, Securities and Exchange Board of India has come up with a new class of auditors, i.e. ‘Social Auditor’, for conducting audit of the projects, initiatives, and activities of social businesses or projects/ programs/ activities of social enterprises. As per Securities and Exchange Board of India notification, a ‘social auditor‘ is defined as an ‘individual registered with a self-regulatory organization (SRO) under the Institute of Chartered Accounts of India (ICAI)‘.
- To pursue the role of a social auditor, an individual must complete the certification program to be conducted by the NISM and hold a valid certificate. So a non Qualified chartered accountant person can also become a social auditor by study above certification.
- The study guideline and course curriculum for the certification programme for social auditors are being developed in close collaboration between the Institute of Chartered Accountants of India and the National Institute of Securities Market.
- Formation of a Self-Regulatory Organization (SRO) for the Social Stock Market was announced by the Institute of Chartered Accountants of India on August 29, 2022.