NISM Professor

Information Repository

Also written IR · Information Repository (IR) · Information Repositories

An SSE participant that enumerates, standardises and verifies information on NPOs, keeping a reliable electronic database so donors and investors can compare them; NGO DARPAN is India's public example.

In plain language

For-profit companies have annual reports, stock prices, credit ratings and analysts. NPOs have almost none of that. The workbook puts it bluntly: there is "a dire lack of robust information on NPOs, unlike in the for-profit sector."

An Information Repository (IR) fills that gap. It collects information on NPOs — financials, governance, impact, activities — checks it, and presents it in a searchable, comparable form. A donor choosing between two education NGOs in Odisha can then compare like with like.

In the Social Stock Exchange ecosystem, IRs are listed among the stakeholders. The workbook calls them "a very important category of participants."

How it works

Three functions (Chapter 2, 2.2.4):

FunctionWhat it means
EnumerationListing active NPOs and their activities
StandardisationSetting a standard reporting format for NPOs and helping them report
VerificationDue diligence on what NPOs report

Objective: to create and maintain a database of reliable, accurate and timely information, in electronic form, giving investors transparent and comparable information. IRs typically work as aggregators and provide a searchable database.

India's public repository — NGO DARPAN.

  • An online platform by NITI Aayog, in collaboration with the Ministry of Home Affairs and the Ministry of Electronics and IT
  • Has aggregated self-declared information on over 320,000 NPOs
  • Lets NGOs register for a unique ID, essential for government grants
  • Helps NGOs access government schemes and funding, and lets the public and government bodies verify NGO details for due diligence

India is described as one of the few emerging economies with an information repository from within the social sector.

Private repositories named in the workbook: GuideStar India, GiveIndia, Credibility Alliance, among others.

Two roles in the SSE. IRs build confidence in NPOs by providing credible, standardised information. They also act as a "feeder" to the SSE, helping its players find and fund high-quality NPOs. Separately, Information Repositories are one of the stakeholder groups represented on the Social Stock Exchange Governing Council.

A worked example

Illustrative scenario.

Nirmal Infra Ltd has a CSR budget of ₹3 crore and wants to fund child-nutrition work in Maharashtra. Its CSR head has a shortlist of four NPOs.

  1. Check NGO DARPAN. Two of the four hold a DARPAN unique ID; one does not. Since DARPAN aggregates information on over 320,000 NPOs and its ID is essential for government grants, the missing ID is a flag. The NSE SSE registration form also asks for the NGO Darpan portal ID.
  2. Check a private repository. On a platform such as GuideStar India, the remaining NPOs' three-year financials, board composition and programme data sit in the same format — the standardisation function. One NPO shows administrative overheads at 38% of spending; the other at 14%.
  3. Check whether it is on the SSE. The 14% NPO is registered on NSE SSE, so it also files annual disclosures and a self-certified Annual Impact Report.

Nirmal Infra funds the registered NPO: ₹2.7 crore as a CSR grant and ₹30 lakh through that NPO's ZCZP issue. The ZCZP amount is exactly 10% of the ₹3 crore budget, the workbook's cap.

The repository did not make the decision. It made the decision possible, by turning four unrelated sets of documents into four comparable profiles — the enumeration, standardisation and verification the workbook describes.

Why NISM asks about it

Chapter 2 (2.2.4) covers Information Repositories: their three functions, objective, NGO DARPAN and the private repositories. Chapter 2 (2.2) lists them among SSE stakeholders, and 2.2.6 includes them in the SGC's membership. Expect a question on the three functions (enumeration, standardisation, verification), on who runs NGO DARPAN, and on the "feeder" role.

Common exam traps

  • The three functions are enumeration, standardisation and verification. "Rating", "fund raising" and "assessment of social impact" are distractors.
  • NGO DARPAN is by NITI Aayog, with MHA and MeitY. It is not run by SEBI or the stock exchanges.
  • DARPAN information is self-declared. Over 320,000 NPOs is the workbook's figure.
  • An IR does not assess social impact. Independent verification of impact reports is the Social Impact Assessor's job.
  • IRs feed the SSE; they do not list NPOs on it. Registration and listing are the exchange's functions.
  • GuideStar India, GiveIndia and Credibility Alliance are private repositories. The public one named is DARPAN.

Where this is taught

Free preparation for NISM Series XXIII

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