Change in nomenclature from ‘social auditor’ to ‘social impact assessor’ is not just replacement of words but overall change in the way of working of NPO. It’s not just about verifying whether utilisation was done for the purpose but it is more so that whether after the utilisation/after the interference done by not for profit organisations (NPO) what is the impact on the underprivileged or beneficiaries, says Makarand M Joshi, Founder MMJC & Associates.
SEBI board meeting recently approved a proposal to change the nomenclature of ‘social auditor’ to ‘social impact assessor’.
On SEBI board approving reduction in minimum application size and minimum issue size on social stock exchange, Joshi said already close to Rs 25,000-30,000 crores is spent by Indian corporations on CSR. So there is a big market for NPO to raise funds. So there is an opportunity for those who want to do social work and make an impact. There is now no dearth of funds for good work.
The SEBI Board approved measures to provide impetus to fund raising by NPOs on the Social Stock Exchange.
This includes reduction in minimum issue size in case of public issuance of Zero Coupon Zero Principal Instruments (ZCZP) by NPOs on SSE from Rs 1 crore to Rs 50 lakh.
Reduction in minimum application size in case of public issuance of ZCZP by NPOs on SSE from Rs 2 lakh to Rs 10,000, thereby enabling wider participation of subscribers including retail.
It also approved changing the nomenclature of ‘Social Auditor’ with ‘Social Impact Assessor’ to provide comfort to NPOs and convey a positive approach towards the social sector.
Permitting NPO to disclose past social impact report in the fund raising document as per their existing practice subject to disclosure of key parameters such as number of beneficiaries, cost per beneficiary and administrative overhead.