New Listing: India sees 1st ever Social Stock Exchange listing with debutant SGBS Unnati
Synopsis
Social Stock Exchange (SSE) is a separate segment created by stock exchanges to help social enterprises raise funds from the public. Certain types of social enterprises like not-for-profit organizations (NPOs) can register on SSE and undertake to make continuous disclosures on their social impact.
Through the funds raised, the NGO plans to train about 10,000 graduates from government colleges and assist them in employment placement through its UNXT program.
The issue was subscribed 90% and the NGO managed to raise about Rs 1.8 crore, according to reports.
ETMarkets explains what a social stock exchange is, and how it’s different from the other exchanges.
What is Social Stock Exchange?
Social Stock Exchange (SSE) is a separate segment created by stock exchanges to help social enterprises raise funds from the public.
Certain types of social enterprises like not-for-profit organizations (NPOs) can register on SSE and undertake to make continuous disclosures on their social impact.
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Such NPOs may or may not choose to raise funds through SSE, however, would continue to make disclosures including on social impact to stock exchanges.
What is an NPO in the context of Social Stock Exchange?
An NPO should be -
i) A charitable trust registered under the public trust statute of the relevant state
ii) A registered charitable society
iv) Any other entity as may be specified by SEBI
Instruments through which NPOs can raise funds?
An NPO registered with the Social Stock Exchange can raise funds through,
ii) Donations through mutual fund schemes
iii) Any other means that SEBI may specify in future
What are the minimum reporting standards for Social Enterprises?
General information such as members of governing body, details of prior funding history, financials, registrations or licenses.
Strategic intent and goal setting - The social problem that needs to be solved, the target segment, and the approach.
Social impact scorecard - The extent of target segment served, intensity of impact on median individual, and dimensions of income, social equity and diversity.
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