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SEBI notifies social stock exchange framework
July 27, 2022
The framework for the Social Stock Exchange (SSE) has been developed on the basis of the recommendations of a working group and technical group constituted by the regulator.
The social stock exchange is a novel concept in India and such a bourse is meant to serve the private and non-profit sectors by channelling greater capital to them. The idea of SSE was first floated by Finance Minister Nirmala Sitharaman in her Budget Speech 2019-20.
Under the new rules, SSE will be a separate segment of the existing stock exchanges, according to the three separate notifications issued by the Securities and Exchange Board of India (SEBI) on Monday.
Social enterprises (SEs) eligible to participate in the SSE will be entities non-profit organisations (NPOs) and for-profit social enterprises having social intent and impact as their primary goal. Also, such an intent should be demonstrated through its focus on eligible social objectives for the underserved or less privileged populations or regions. The social enterprises will have to engage in a social activity out of 16 broad activities listed by the regulator.
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