The Social Stock Exchange Will Start After Receiving Final Permission From SEBI
top stock exchange The Securities and Exchange Board of India (Sebi) has given the National Stock Exchange of India (NSE) the go-ahead to establish Social Stock Exchange (SSE) as a distinct division of the NSE.
The National Stock Exchange (NSE) said in a statement that the final approval was obtained on February 22. The Social Stock Market section will provide social entrepreneurs new ways to finance charitable endeavors, give them prominence, and promote transparency in how funds are raised and used by social enterprises.
NSE MD and CEO Ashishkumar Chauhan stated, "To raise awareness, we have been organizing numerous events and supporting social companies presently at various phases of onboarding on the exchange. Also, he has invited social entrepreneurs to contact the NSE to learn more about the process and advantages of signing up for and listing on the social stock market sector.
Any social business that indicates the priority of its social objective may apply to be listed on the SSE segment, regardless of whether it is a NonProfit Organization (NPO) or a For-Profit Social Enterprise (FPE). The first stage of onboarding for qualifying NPOs begins with registration on the Social Stock Market section.
Social entrepreneurs will have more opportunities to generate money for good causes, gain notoriety, and increase the transparency of how those funds are utilized thanks to the SSE sector. Any social company that can establish the significance of its social aim may register with or be listed on the SSE sector, regardless of whether it is a for-profit social enterprise (FPE) or a non-profit organization (NPO), according to a statement by NSE.
In her presentation of the 2019–20 Union Budget, Union Finance Minister Nirmala Sitharaman had suggested the establishment of an SSE, under the regulatory purview of Sebi, for the listing of nonprofit organizations and social enterprises working to realize a social welfare goal in order for them to raise capital as equity, debt, or units similar to mutual funds (MF).
In October of last year, the capital market regulator SEBI awarded the stock exchange BSE its in-principle clearance for the SSE as a distinct segment.
