Securities & Exchange Board of India (SEBI) has notified establishment of Social Stock Exchange (SSE) in India.
The SSE will provide an additional avenue for accessing and raising social funds for promoting the development agenda in the country and meeting the Sustainable Development Goals (SDGs). Not for profit organisations like Society, Trust or Section 8 company and For Profit Enterprises (FPEs) will be able to raise funds. Not for profit organisations may register themselves on SSE before raising of funds through issue of securities.
Annual disclosure for entities registered and listed on SSE would have to be made and a report on social impact generated through activities will have to be submitted to the SSE duly audited by a social auditor. As of now, not for profit organisations will be able to raising funds through Zero Coupon Zero Principal (ZCZP) bonds and donations through mutual fund schemes while For Profit Enterprises will be able to raise debt and equity from investors.
This is a very exciting opportunity in the long run for serious minded organisations as a source of funding and bringing visibility, accountability and transparency to development work. Saathi will conduct a webinar on SSE shortly.