CSR Law & Social Transformation In India

* Birendra K Jha
Practitioner "Social Impact Assessment Audit"; "Social Audit"; "CSR Audit";  Qualified Member of the Institute of Social Auditors of India; Director, HR Lab

 

The SEBI Board in its meeting held on September 28, 2021 had given specific note to the Ministry of Corporate Affairs (“MCA”), Ministry of Finance (“MoF”) and Ministry of Home Affairs (“MHA”) to change Company Law 2013 and FERA Provision on the accountability check by the Social Auditor. This has been done to ensure clean route in the social projects and the CSR fund utilization. The SEBI ICDR and SEBI AIF Regulations, have  already been amended. This amendment, with immediate effect has changed the SEBI Listed entities to conduct CSR's Social Impact Assessment Audit, as per the new Law.   Now, only Qualified Social Auditor can conduct the Social Impact Assessment Audit. The Ministry of Corporate Affairs is also changing the provision with regard to the Corporate Social Responsibility  (“CSR”), as per the SEBI Provision, to stop completely Company and the unqualified people to get the job of Social Impact Assessment Audit.    This shall bring uniformity with a given format and guideline circulated by the Institute of Chartered Accountants of India. The Department of Revenue is amending  the tax related recommendations to strengthen the social projects  and the CSR projects on Tax benefits. The Ministry of Home Affairs, which is regulating  the funding matter within  the FCRA Law, vide the  Rule 4 of the Foreign Contribution (Regulation) Rules, 2011 (“FCRR”), on point,  whether foreign entities shall be eligible to invest in entities listed on Social Stock Exchange, is under consideration, to eliminate bad elements and terrorism funding in Indian NGO. The ruling point has been considered that, the foreign donors shall not be allowed to take decisions, or shall  not have any discretion on deployment of their funds to specific NPOs. 

 ( The writer is a Pan India Practitioner on the "Social Impact Assessment Audit"; "Qualified Social Auditor" under SEBI Law & Company Act. He heads "Social Audit Firm" HR Lab as its Director. This firm provides services  on the "Social Impact Assessment Audit" &  "Social Audit". He provides consultation on the CSR Program Need Assessment; CSR Program Measurement; Entry & Registration- Social Stock Exchange & provides Capacity Development Training to industries on the CSR Audit.  He is  based at Delhi-NCR. He overlooked at senior position in the HR - CSR in previous MNC Company in India for more than a decade.  He may be approached at: birendrajha03@yahoo.com ) 


#CSR #SocialImpactAssessment #CSRHead  

 

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