India allows firms to invest 10% of CSR in SSE
Big update: Indian companies can now put up to 10% of their corporate social responsibility (CSR) budgets into special instruments issued by nonprofits on the Social Stock Exchange (SSE).
This move builds on the rule that asks a certain class of profitable companies to spend at least 2% of their three-year average annual net profit on CSR in a particular financial year, but now gives them more options for supporting social impact projects.
SSE investments now qualify as CSR
The Ministry of Corporate Affairs tweaked the Companies Act so these SSE investments officially count as CSR spending.
The idea is to make things simpler for companies and give nonprofits a clear, transparent way to get funding for the public good.
Experts say this should boost trust and open up more funding opportunities for social enterprises under SEBI rules.