Social Stock Exchange

• 02 Mar 2023

On February 22, the Securities and Exchange Board of India (SEBI) has given the National Stock Exchange of India (NSE) the green light to establish a Social Stock Exchange (SSE).

• It is a new segment within the existing stock exchange that helps social enterprises raise funds from the public through its mechanism.
• The SSE provides a medium for social enterprises to seek finance for their social initiatives and acquire visibility.
• The SSE offers increased transparency about fund mobilisation and utilisation, providing retail investors with an opportunity to invest in securities offered by for-profit social enterprises under the Main Board.
• Institutional investors and non-institutional investors can invest in securities issued by SEs in all other cases.

Eligibility to be listed on the SSE:

• Establish the primacy of social intent
• Fall under either non-profit organizations (NPO) or for-profit social enterprises (FPSEs)
• Establish the primacy of social intent
• Fall under either non-profit organizations (NPO) or for-profit social enterprises (FPSEs)
• Work towards eradicating hunger, poverty, malnutrition, and inequality; promoting education, employability, equality, empowerment of women and LGBTQIA+ communities; environmental sustainability; protection of national heritage and art; or bridging the digital divide
• Direct at least 67% of its activities towards achieving the stated objective, as evidenced by either revenue, expenditure, or the target population.