What are Social stock exchanges (SSE) ? - Porul

 

Social Stock Exchanges



Social Stock Exchanges :

Social stock exchanges are a regulated funding platform to allow for-profit social enterprises (FPEs) and Non-profit organizations (NPOs) to raise funds.

Currently there are handful of ways to raise revenue these above said entities like Corporate social responsibility, Philanthropic grants, donations etc.

History:

During the Union budget session 2019, the government proposed setting up of SSEs. As a continuation, SEBI formed a working group to opine the propositions and the working group submitted its report on June, 2020.

In September 2020, SEBI set up Technical group for further advice and to give clarity on recommendations made by working group.

About SSE:

It aims to connect organizations like FPEs and NPOs with Institutional investors like Impact investors. Investors may get stake in the SSE listed FPEs and NPOs in the form of bonds.

Benefits:

SSE would leverage private players participation in crucial areas (Read social development) thereby reducing the burden on governments.