Category: Social Stocks

At present, organisations are only able to register on the platform. The format for offer documents and fundraising is yet to be released. It will only be possible to start fundraising or see any outcomes on the platform once this is done.

India’s unique experiment of a Social Stock Exchange (SSE) is gathering steam, as many not-for-profit and social organizations have shown interest in listing on the platform. So far, over 20 social ventures have expressed their interest in listing on the new platform with more to follow.

At present, organisations are only able to register on the platform. The format for offer documents and fundraising is yet to be released. It will only be possible to start fundraising or see any outcomes on the platform once this is done.

Currently, more than 20 different social organisations have registered under the SSE platform of both NSE and BSE exchanges. Here are the details:

1. Development Management Foundation

This organisation is listed on both NSE and BSE. It is an educational institution founded to create, strengthen and establish development management.

2. Gramalaya Trust

It operates in the field of water, sanitation, and hygiene in rural, urban, coastal and tribal areas. It is listed on NSE.

3. Grey Sim Learning Foundation

Listed on NSE, the Foundation provides vocational skills and products to increase the employability and productivity of the youth.

4. Krushi Vikas Va Gramin Prashikshan Sanstha

Listed on NSE, this organisation aims at the betterment of rural, semi-rural, and diversifying urban communities depending on agri and nonfarm-based activities for their livelihood.

5. Lighthouse Communities Foundation

The foundation, listed on BSE, enables livelihoods for all.

6. Masoom Trust

Listed on NSE, it empowers, strengthen and transform night schools to empower youth.

7. Missing Link Trust

It is listed on both NSE and BSE and engages with the public on the issue of sex trafficking and missing girl child.

8. Mukti

It is listed on NSE and helps the poor and distressed across the globe.

9. Opportunity Foundation Trust

It is listed on both NSE and BSE and works to help lift girl children out of poverty through education.

10. People’s Rural Education Movement

Listed on BSE, it is working for the development of Adivasi (indigenous), Dalit, Fisher folk and other marginalized communities of Odisha and neighbouring states of India.

11. Possit Skill Organisation

Listed on both NSE and BSE, it supports unemployed youth to harness their talent and develop their market-oriented skills.

12. Ratna Nidhi Charitable Trust

Listed on NSE, this trust looks at tackling the problems of poverty in Mumbai, especially among young children.

13. Saath Charitable Trust

Listed on BSE, it works with the deprived communities and empowers the socially marginalised by providing them livelihood services, and imparts skills.

14. Score Livelihood Foundation

Listed on NSE, it empowers communities with sustainable and inclusive livelihood options.

16. SGBS Unnati Foundation

Listed on both NSE and BSE, it works towards equipping underprivileged youths and providing employment.

17. Supporting Association for Thematic and Holistic Initiatives (SATHI)

Listed on BSE, it helps improving the lives of individuals, especially women and children.

18. United Way of Delhi

Listed on NSE, it helps individuals achieve their potential through education, financial stability, and access to health.

19. United Way Mumbai

Listed on NSE, it helps individuals achieve their potential through education, financial stability, and access to health.

20. Voice Society

Listed on NSE, it is a Voluntary Action Group of Academicians, Professionals and Volunteers who work to raise awareness amongst Indian consumers about their own Consumer Rights.

The other social organisations listed on the stock exchanges include Vatsalya Trust, Samvedna Development Society, and Shri JagatBharti Education and Charitable Trust.

An SSE is an electronic fundraising platform that allows an alternative fundraising option for social enterprises. Meanwhile, the listing process for SSEs works similarly to an initial public offering (IPO). The difference here is instead of allotted shares, participants will get Zero Coupon Zero Principal (ZCZP) instruments.

At present, the social-development sector in India receives funding through multiple sources spanning corporate social responsibility (CSR), philanthropy, government funding and retail charity. An SSE would attempt to bring coherence across to diverse platforms with uniform frameworks of funding, utilisation, impact-creation, measurement, disclosures, and reporting.

It may be noted that the BSE received a final approval from the regulator SEBI to launch SSE as a separate segment in December 2022, while NSE in February this year.

This concept is still very new to India and was introduced by Finance Minister Nirmala Sitharaman in her Union Budget speech for the financial year 2019-20. Globally, countries like Brazil, Canada, Jamaica, Portugal, South Africa, Singapore and the UK already have established SSEs.

The government thas already notified new security Zero Coupon Zero Principal (ZCZP) under the Securities Contracts (Regulation) Act, 1956.

The National Stock Exchange of India (NSE) received in-principle approval from the Securities Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.

  “NSE has always played a pivotal role in capital formation for the country. We are working towards the launch of the Social Stock Exchange as a segment on NSE,” NSE Managing Director and CEO Ashish Kumar Chauhan said in a statement.

  “We believe this platform will immensely benefit the social enterprises contributing to the Sustainable Development Goals,” he added.

  The government has already notified new security, “Zero Coupon Zero Principal (ZCZP)”, under the Securities Contracts (Regulation) Act, 1956.

  The new instrument ZCZP can be publicly or privately issued by Not for Profit (NPO) upon registering with the Social Stock Exchange segment of NSE to raise funds subject to fulfilment of eligibility criteria.

  The regulations have currently prescribed the minimum issue size of Rs 1 crore and minimum application size for subscriptions at Rs 2 lakhs. Subscription to the ZCZP would be like a philanthropic donation.

  In her 2019-20 Budget speech, Finance Minister Nirmala Sitharaman had proposed the creation of a Social Stock Exchange, under the regulatory ambit of the SEBI for listing social enterprises and voluntary organisations working for the realisation of a social welfare objective, so that they can raise capital as equity, debt or as units like a mutual fund.

Union minister Nirmala Sitharaman launched the National CSR Exchange Portal

National CSR Exchange Portal has become a reality in India. It aims at enhancing and aiding the implementation of Corporate Social Responsibility initiatives. As Corporate Social Responsibility (CSR) became mandatory under the Companies Act 2013, more and more companies have to abide by the legislation making it essential to direct companies with relevant resources and expertise towards the same.

To manage their CSR projects effectively, the government launched the National CSR Exchange Portal earlier this month to celebrate Azadi ka Amrit Mahotsav.

The National CSR Exchange Portal is a digital initiative that will enable stakeholders to list, search, interact, engage and manage their CSR projects voluntarily, according to an official release.

This National CSR Exchange Portal will serve as an e-marketplace hosting PAN India social welfare projects where stakeholders such as Implementing agencies can put up their ongoing projects, and companies can select projects for CSR Spending per their preferences and vice versa.

The Exchange Portal has been developed based on recommendations of the High-Level Committee on Corporate Social Responsibility 2018. An Advisory cum Technical Committee was formed for the development of the portal. The Committee was represented by different CSR Stakeholders – CSR Practitioners, Technical Experts, and Civil Society Organizations. The Committee apprised of BSE Sammaan, an initiative of MCA Think Tank: Indian Institute of Corporate Affairs, Confederation of Indian Industry, and Bombay Stock Exchange, which offered similar functionalities as envisaged for the National CSR Exchange Portal.

The exchange was launched by the Union minister Nirmala Sitharaman, who is in charge of the finance and corporate affairs ministries, in the presence of Minister of State for Corporate Affairs Rao Inderjit Singh and senior officials.

The technical committee would prescribe disclosure requirements related to performance, financials and governance and dwelling upon aspects related to social impact and social audit.

Markets regulator SEBI has constituted a technical committee, under the chairmanship of Harsh Kumar Bhanwala, former chairman of Nabard, following the recommendations of a working group on social stock exchange.

The technical committee would prescribe disclosure requirements related to performance, financials and governance and dwelling upon aspects related to social impact and social audit.

The committee will comprise of members including Vikram Gandhi faculty at Harvard Business School and founder of Asha Impact; Ingrid Srinath, founder director, Centre for Social Impact and Philanthropy at Ashoka University; Pushpa Aman Singh, CEO of Guidestar; and Santhosh Jayaram, partner and head (Sustainability) and CSR advisory at KPMG.

In addition, Roopa Kudva, managing director of Omidyar Network India; Shaji Krishnan V, deputy MD of Nabard; Sanjeev Singhal, chairman of sustainability reporting standards board at ICAI; representatives of BSE, NSE and Sebi are also part of the technical group.

Finance Minister Nirmala Sitharaman on Friday proposed a plan to create a Social Stock Exchange (SSE) under the regulatory ambit of Securities and Exchange Board of India (SEBI) that would allow the listing of social enterprises

Finance Minister Nirmala Sitharaman on Friday proposed a plan to create a Social Stock Exchange (SSE) under the regulatory ambit of Securities and Exchange Board of India (SEBI) that would allow the listing of social enterprises and voluntary organisations to help them raise funds for social welfare activities.

These organisation would be allowed to ‘list” in the same way the private firms list themselves on a stock market.

Presenting her maiden budget in Parliament, Sitharaman said, “It is time to take capital markets closer to the market and meet various social welfare objectives related to inclusive growth and financial inclusion.”

“I propose to initiate steps towards creating an electronic fund-raising platform, a social stock exchange, under SEBI for listing social enterprises and volunteer organisations,” she said.

The minister said that the exchange would help organisations to raise capital through equity, debt or a unit of mutual fund. Social stock exchanges make it easier for investors interesting in social entrepreneurship to find organisation to put money into, with a level of regulation about what the investment goes towards.

They already exist in countries like United Kingdom, Canada, Singapore, South Africa, Brazil, Jamaica and Kenya.

However, this announcement comes at a time when the Centre has been criticised for putting roadblocks on the path of socially inclined non-governmental organisations.