Social Stock Exchange

SEBI gave final approval to National Stock Exchange of India to establish the Social Stock Exchange (SSE).

What is A social stock exchange?

The SSE would operate as a distinct division within the current stock exchange and assist social businesses in raising money from the general public through its mechanism.
It would act as a platform for businesses to get funding for their social activities, gain publicity, and offer greater transparency on the mobilisation and use of funds.
Securities sold by for-profit social enterprises (SEs) on the Main Board are the only ones in which retail investors may invest.
Only institutional and non-institutional investors are permitted to purchase securities issued by SEs in all other circumstances.

Eligibility:

Any non-profit organisation (NPO) or for-profit social enterprise (FPSEs) that demonstrates the importance of social intent will be recognised as a SE, making it possible for it to register with or be listed on the SSE.
In accordance with SEBI's ICDR Rules, 2018, among the 17 tenable criteria are those that contribute to eradicating hunger, poverty, malnutrition, and promoting education, employment, equality, and environmental sustainability.
Business foundations, political or religious organisations, professional or trade associations, infrastructure corporations, and housing providers (apart from those providing affordable housing) are not eligible.
NPOs would be considered disqualified if they received more than 50% of their financing from corporations.

Fundraising for NPOs:

NPOs may collect funds by issuing Zero Coupon Zero Principal (ZCZP) Instruments through private placement or public offering, or by accepting donations from mutual funds.
ZCZP bonds are distinct from ordinary bonds in that they have no principal payment due at maturity and no coupon.
The current minimum issue size for ZCZP issuance is set at Rs 1 crore, and the minimum application size for subscription is set at Rs 2 lakhs.
Moreover, Development Impact Bonds are offered following project completion and are provided based on pre-established social criteria at pre-established costs/rates.

Money Raising for FPSEs:

Before raising money through SSE, FPEs are not required to register with SSE.
It can raise money by selling stock shares, selling equity shares to an AIF, such as a Social Impact Fund, or selling debt instruments.

Also Read About : - Funding for NGOs

Source: The Economic Times

Join Our Telegram

Oceanic Anoxic Event 1a and MASS EXTINCTION

Oceanic Anoxic Event 1a and MASS EXTINCTION

25 Dec, 24
SHARE

Oceanic Anoxic Event 1a from the Paris Basin (Environment) Paper-3 PMP OAE 1a refers to a period during the Cretaceous Period (145 million years ago and ended 66 million years ago) when Earth's oceans became depleted of oxygen, causing a significant disruption in marine life. Cause: The event is believed to have been

Viksit Panchayat Karmayogi (Good governance)

26 Dec, 24
SHARE

Viksit Panchayat Karmayogi (Good governance) Governance GS PAPER-2 PMP Dr. Jitendra Singh launched the ‘Viksit Panchayat Karmayogi’ initiative on Good Governance Day, celebrated to mark the 100th birth anniversary of former Prime Minister Atal Bihari Vajpayee. The initiative, which is part of the broader ‘Prashasan Gaon

Major programmes to control Air Pollution

23 Dec, 24
SHARE

Major programmes to control Air Pollution National Clean Air Programme? It was launched by the Ministry of Environment, Forests and Climate Change (MoEFCC) in January 2019. It is the first-ever effort in the country to frame a national framework for air quality management with a time-bound reduction target. The

Air pollution and Air quality Measures in India

21 Dec, 24
SHARE

Air pollution and Air quality Measures in India (Environment) GS Paper-3 P-M-P Air pollution may be defined as the presence of any solid, liquid or gaseous substance including noise and radioactive radiation in the atmosphere in such concentration that may be directly and/or indirectly injurious to humans or other l

Geopolitical Significance of Ports

20 Dec, 24
SHARE

Geopolitical Significance of Ports (IR) Act as geopolitical assets: Ports enhance the projection of strategic reach, which helps strengthen the country’s control over important sea and energy supply routes. E.g. Indian Navy’s staging base at Agalega Islands will enable marine patrols