You must have heard about the stock exchange i.e. the stock market. But have you ever heard about Social Stock Exchange. Here you will get all the information related to it.
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We all know about the stock market i.e. stock exchange. But have you ever heard about Social Stock Exchange? The concept of social stock exchange came in 2019 during the tenure of the Modi government. Finance Minister Nirmala Sitharaman had proposed to set up such a stock exchange in her 2019-20 budget speech. Its purpose was to provide a platform to social enterprises, NGOs and voluntary organizations where they can raise money. After all, how does this stock exchange work…?
Social Stock Exchange is one way in which NGO helps in raising funds. At the same time, it is a platform where investors can invest in enterprises working in the social sector. Social stock exchanges also work under SEBI like the common stock market. SEBI Social Stock Exchange on BSE and NSE (SSE) has been allowed to start as a separate segment.
How does the Social Stock Exchange work?
Social stock exchange is different from the common stock market. But it works just like the stock market. Here social change organizations, NGOs etc. raise money from investors who are willing to invest in social change units. Social Stock Exchange is a medium for social enterprises to raise money.
Social enterprises are such units which work towards bringing a major change in the society. Social enterprises are generally non-profit organizations or NGOs if understood in common language. Although some social enterprises also work for profit. These units have to fulfill certain qualifications to be registered on the Social Stock Exchange.
Which Social Enterprises can be registered on SSE?
If you run a non-profit organization, you can also list yourself on SSE. On the other hand, if you are an investor, then you can invest in these units or NGOs. However, before that you should check whether that social unit fulfills these qualifications.
- Any charitable trust, which is registered under the Public Trust Act of its respective state.
- Any charitable society, which is registered under the Societies Registration Act-1860.
- Any company which is registered under Section-8 of the Companies Act-2013.
- Any entity for which a regulation has been issued by SEBI.
- Only Indian Social Enterprises can be registered on the Social Stock Exchange in India.
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