Description

BSE implements SEBI amendments allowing NPOs registered on SSE to remain registered for up to 2 years without raising funds, with automatic lapse if no funds raised within validity period.

Summary

BSE has implemented regulatory changes pursuant to SEBI notifications dated September 8, 2025, which amended LODR 2015 and ICDR 2018 regulations. NPOs registered on BSE’s Social Stock Exchange platform will now have a maximum validity period of 2 years from registration date. If an NPO does not raise funds within this 2-year period, its registration will automatically lapse.

Key Points

  • NPO registrations on BSE SSE platform valid for maximum 2 years from registration date
  • New registrations from September 9, 2025 onwards subject to 2-year validity
  • Existing valid registrations as on September 9, 2025 also limited to 2 years from their respective registration dates
  • Registration automatically lapses if NPO fails to raise funds within 2-year validity period
  • Changes align with SEBI amendments to LODR 2015 and ICDR 2018 regulations

Regulatory Changes

SEBI amended the following regulations on September 8, 2025:

  • SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

Key provision: NPOs registered with SSE permitted to remain registered without raising funds for maximum 2 years from registration date.

Compliance Requirements

For NPOs on BSE SSE Platform:

  • Must raise funds within 2 years of registration to maintain active registration status
  • Failure to raise funds within validity period results in automatic lapse of registration
  • No action required for existing registrations - 2-year validity applies automatically from original registration date

Contact: For queries or clarification, contact sse@bseindia.com

Important Dates

  • September 8, 2025: SEBI notification date for regulatory amendments
  • September 9, 2025: Effective date - new registrations from this date onwards valid for 2 years
  • December 16, 2025: BSE notice date
  • Validity Period: 2 years from respective registration date for all NPOs (new and existing)

Impact Assessment

Impact on NPOs:

  • Creates time-bound pressure to raise funds within 2-year window
  • NPOs must plan fundraising activities within validity period or face automatic delisting
  • Existing NPOs as of September 9, 2025 need to assess time remaining in their 2-year validity

Market Impact:

  • Ensures only active NPOs remain registered on SSE platform
  • May improve quality and credibility of SSE by filtering inactive registrations
  • Low direct market impact as SSE segment focuses on social enterprises and NPOs, not traditional equity securities

Impact Justification

Affects NPOs registered on SSE by implementing mandatory 2-year validity period with automatic lapse provision, requiring timely fundraising to maintain registration