Social Stock Exchange India : The National Stock Exchange of India (NSE India) has received in-principle approval from the market regulator (SEBI) to set up a Social Stock Exchange (SSE). This approval has been received from SEBI on 27 December 2022. Earlier, the oldest Bombay Stock Exchange (BSE) had received in-principle approval to start the Social Stock Exchange on 19 December 2022. Know what are social stock exchanges.
What is Social Stock Exchange
SSE is a new concept in the stock exchange sector. It may be known that for the first time the Union Finance Minister Nirmala Sitharaman mentioned the Social Stock Exchange (SSE) in her budget speech for the financial year 2019-20. The framework for this was released in July this year. Based on the recommendations of a working group and technical group constituted by SEBI. Its main objective is to give an opportunity to private and non-profit sectors to raise more funds.
These countries are already doing work
In many ways, there are stock exchanges for profit-making companies, but there are SSEs for non-profit organizations (NPOs). In the year 2020, a draft report was prepared by SEBI itself regarding SSE, suggestions were also sought from people about SSE. SEBI had also constituted a committee for this. SEBI introduced the framework for the Social Stock Exchange on 19 September. Countries like England, Canada and Brazil in the world are already working on SSE.
will be included
Non-profit organizations such as NGOs will also be able to join SSE. If a company wants to be listed on the exchange, then first it has to register itself as a non-profit organization (NPO). Due to having about 31 lakh NPOs in India, there has been a lot of potential for this exchange in the country.
How will investors get benefit
In this regard, Finance Minister Nirmala had told that all the citizens of the country will get benefit from the social stock exchange. There is a plan to create an electronic fund raising platform, which will help organizations working for the betterment of society to get listed and raise funds. Now the common man / investor will get a chance to buy and sell the shares of NGO. In a way, it will work like the stock market.
what is the condition
SEBI says that NPO should be registered as a charitable trust, as well as should be registered for at least 3 years. Should have spent at least ₹50 lakh annually in the previous financial year and should have secured a minimum finance of ₹10 lakh in the previous financial year.