Corporate Social Responsibility Policy

April 2021
© IIFL Securities Ltd.
No part of this document should be reproduced or distributed without prior permission by IIFL Securities Ltd.

What’s Inside

  • 1.

    Preamble
  • 2.

    Purpose
  • 3.

    Policy Statement
  • 4.

    Scope of CSR Policy
  • 5.

    IIFL Foundation
  • 6.

    Key Focus Areas
  • 7.

    Partnering Organizations
  • 8.

    Governance Structure
  • 9.

    Responsibilities of the Board of Directors
  • 10.

    CSR Committee
  • 11.

    Third Party Implementing Bodies
  • 12.

    CSR Budget
  • 13.

    Approach for Utilizing the CSR Budget
  • 14.

    Project Life-Cycle
  • 15.

    Impact Assessment
  • 16.

    Treatment of Surpluses
  • 17.

    Policy Review
  • 18.

    Contact

1. Preamble

IIFL Securities Limited (hereinafter referred to as “IIFLSL”) is one of the key capital market players in the Indian financial services space. IIFLSL along with its subsidiaries offers advisory and broking services, financial products distribution, institutional research and investment banking services.

IIFLSL is guided by IIFL Group’s vision to become the most respected brand in the financial services space in India. To realize this vision, IIFLSL recognizes the importance of contributing to sustainable social transformation. The approach to the business focuses on one hand; on building trust, knowledge and delivering quality service to its customers and on the other; to provide timely assistance to its customers.

IIFLSL strongly believes that Corporate Social Responsibility (CSR) is connected with the principles of sustainable growth.

The Corporate Social Responsibility Policy (hereafter referred to as ‘Policy’) of IIFL Securities Ltd has been designed in accordance with Section 135 of the Companies Act, 2013 (hereafter referred to as ‘Act’) to lay down the guidelines for undertaking CSR initiatives at IIFLSL and its subsidiaries in accordance with the Companies (Corporate Social Responsibility Policy), Rules, 2014 (hereafter referred to as ‘Rules’). This Policy lays down the guiding principles or rules that shall apply to all CSR programs/projects to be undertaken by the Company and its subsidiaries as per Schedule VII of the Act.

2. Purpose

The key purpose of this policy is to:

  • Define the broad development areas that IIFLSL shall undertake
  • Outline the governance structure for management of CSR activities within the company
  • Serve as a guiding document to help identify, execute and monitor CSR projects
  • Explain the manner in which the surpluses from the CSR projects will be treated

3. Policy Statement

IIFLSL’s CSR Policy and projects are steered by its values, which can be summarized in one acronym – FIT, which stands for:

  • Fairness: To everybody - government, stakeholders, customers, employees and society.
  • Integrity: Honesty. we never compromise on it.
  • Transparency: We are transparent about whatever we do.

By embedding these values in its CSR approach, IIFLSL aims to undertake initiatives that create sustainable growth and empower the underprivileged sections of the society.

4. Scope of CSR Policy

This Policy applies to all CSR projects undertaken by IIFLSL and fulfils all the requirements of Section 135 of the companies Act 2013. IIFLSL shall ensure all these activities are over and above the normal course of business and are in line with Schedule VII of the Companies Act 2013. The Policy will be periodically reviewed and updated in line with relevant codes of legislation, international standards and best practices followed globally.

5. IIFL Foundation

IIFL Foundation was constituted under section 8 of the Companies Act, 2013, to act as the umbrella organization for managing and implementing all CSR projects of IIFL and its Group companies. The Foundation partners with implementation agencies that best fit the Group’s values and priorities. The Foundation is working towards achieving its vision ‘to eradicate girl child illiteracy and inspire them for higher education’. IIFL Foundation has registered with the Central Government by filing the form CSR-1 and has received its CSR Registration Number of CSR00002470.

6. Key Focus Areas

The CSR projects undertaken by IIFL Foundation are clubbed under the heading HELP (Health, Education, Livelihood and Poverty alleviation).

Focus area Focus area Initiatives and projects
6.1 Health IIFL Foundation’s primary focus is on promoting preventive healthcare, undertaking healthcare initiatives and supporting medical research institutions. The objective is to enhance healthcare access, especially to the disadvantaged and underprivileged sections.
  • Aarogya
  • COVID-19 prevention
  • Mega health camps
  • Distribution of oxygen concentrators
6.2 Education IIFL Foundation believes that a literate population can catapult India towards realizing its demographic dividend. Education is one of the key focus areas for CSR for the foundation. The focus is on providing education to out-of-school girls, setting up and upgrading educational facilities and supporting institutes for higher education. Special focus shall be levied over promotion of education in rural areas and among female population to enhance literacy rate of girls.
  • Sakhiyon Ki Baadi
  • Volunteering
  • Maa Baadi centers
  • Construction of schools
  • Mobile schools
  • Scholarships
6.3 Livelihood IIFL Foundation has identified the key strengths and limitations of people belonging to its communities. Accordingly, it has identified animal husbandry, women employment and promotion of local art and craft as its key focus areas.
  • Animal husbandry
  • Women employment
  • e-Mela
6.4 Poverty alleviation IIFL Foundation has been fulfilling the aspirations of customers belonging to all sections of the society. The Foundation has focused actively on promoting financial literacy among its communities.
  • Financial literacy

In addition to the above, IIFL Foundation will also continue to make contribution to several schemes of the governments, undertake active disaster relief activities, drive environment sustainability and promote sports. It may also undertake one-time projects based on the needs of the communities.

The Foundation will continue to add more initiatives under each of its focus areas from time to time.

7. Partnering Organizations

IIFL Foundation undertakes its CSR activities in multiple ways such as:

  • Utilizing the contributions received by the Foundation
  • Working with implementing agencies
  • Undertaking collaborative projects with other corporates

The Foundation executes the CSR responsibilities either (i) directly, by executing and implementing programs permitted under Schedule VII and approved by the CSR Committee or (ii) by entering into partnerships with implementing organizations registered in India and having a track record of service, performance, governance and accountability.

8. Governance Structure

IIFLSL has constituted a robust and transparent governing mechanism to oversee the implementation of its CSR Policy, in compliance with the requirements of the Section 135 of the Companies Act 2013.

At the helm of this mechanism is the Board of Directors, who is ultimately accountable for the CSR projects undertaken by the company.

IIFLSL has constituted a CSR Committee at the Board level. The CSR Committee is supported by the Chief Financial Officer (CFO), IIFL Foundation’s CSR Team and comprises representatives from IIFLSL as well as IIFL Foundation.

CSR Governance Structure

9. Responsibilities of the Board of Directors

The Board of Directors of IIFLSL will be responsible for:

10. CSR Committee

10.1 CSR Team

This team is at the core of all CSR activities at IIFL Foundation. It is responsible for ensuring effective implementation of all CSR projects.

Key responsibilities of the IIFL Foundation’s CSR team include:

10.2 CSR Advisory Committee

The Advisory Committee constituted by IIFL Foundation shall provide inputs to the CSR team to help them plan and implement CSR projects.

11. Third Party Implementing Bodies

It is the responsibility of the CSR Committee, while the implementation modality of a CSR project/ program is defined, to ensure that the external body that would execute the said project / program is clearly identified. In case the external body is a NGO or an Agency other than an NGO, it shall meet the following criteria:

12. CSR Budget

The total budget for the CSR projects is decided annually in accordance with the goals and priorities of IIFLSL.

13. Approach for Utilizing the CSR Budget

The CSR Committee decides on the following aspects of utilizing the CSR amount:

14. Project Life-Cycle

IIFL Foundation plans, implements, monitors and manages all CSR projects of IIFLSL. The Foundation works closely with the CSR Committees of the Board of IIFLSL, the CSR team and the CSR Advisory committee to identify projects that are in alignment with the vision and goals of the company.

Following the approval of the Boards of the companies of IIFLSL and the Chief Financial Officer, the CSR team formulates implementation plans for the projects specifying the following:

The IIFL Foundation is responsible for ensuring the smooth execution of all CSR projects undertaken by the Group. The Foundation choses to implement the projects by itself or ensures that projects are awarded to implementation agency that is a Registered Trust or a Society or a Section 8 Company. Potential partner NGOs must have a clearly explained mission and vision and should be able to provide their latest audit, annual reports and registration forms according to 80G/12A.

14.1 Monitoring

The IIFL Foundation’s CSR team monitors the implementation and progress of the approved projects through appropriate mechanisms such as site visits, review meetings and progress reports. Mechanisms to track data and monitor projects are being established to ensure the transparency and efficiency of the implementation process. The projects are evaluated against the milestones defined in the implementation plan of the project. The CSR team presents monitoring reports of the projects to the Board of Directors/CSR Committee on a periodic basis.

14.2 Reporting

The Board of the company holds the responsibility that Funds of CSR are utilized for the purposes and in the manner as approved by it and the Chief Financial Officer, certifying its effect.

The CSR Committee of the Board, based on the reports presented by the CSR team, annually publishes report on the CSR projects as a part of the Directors’ report. The report discloses information in the format prescribed by the Section 135 of the Companies Act of 2013. The CSR Committee also submits a responsibility statement to the Board that the implementation and monitoring of the CSR Policy is in compliance with the approved CSR Policy of the company.

The CSR Policy and any modifications made thereof, once approved by the Board, are being displayed on the website of the Company.

15. Impact Assessment

In pursuance to the subsection (5) of section 135 of the Act, for an average CSR obligation of ten crore rupees or more, in the three immediately preceding financial years, an impact assessment, through an independent agency, of the CSR projects having outlays of one crore rupees or more, and which have been completed not less than one year before undertaking the impact study, shall be conducted.

16. Treatment of Surpluses

Any surplus generated from the projects undertaken by the Foundation are being tracked and channelized into the CSR corpus of the Foundation. These funds will be further used in development of the CSR projects and will not be added to the normal business profits.

17. Policy Review

18. Contact

For queries related to CSR policy, please write to us at: csr@iifl.com.