Various NGOs and other social organisations in India, soon could list on social stock exchanges and raise funds like as corporates. Pursuant to an announcement made by the Finance Minister Nirmala Sitharaman in her budget speech for FY 2019-20 regarding Social Stock Exchanges SEBI had constituted a Working group and later a technical group.
Technical group has submitted its recommendations and SEBI has sought comments from the public on this report. AIR correspondent reports that various corporates, startups, MSME can raise funds from stock markets in India and abroad. Soon various Social organisation, NGOs can also opt this route. Country’s first Social Stock Exchange could soon become reality. As per the recommendations of technical groups headed by Dr. Harsh Kumar Bhanwala, Ex – Chairman of NABARD, Various social enterprises working with social intent can be listed on social stock exchange.
Non-profit organisations can use various instruments like equity, Mutual Funds, Zero Coupon Zero Principal bonds, Social Impact Funds, and Development Impact Bonds for fundraising. But the technical group has recommended that, Corporate foundations, political or religious organizations, professional or trade associations, infrastructure and housing companies except affordable housing should not be permitted on Social stock exchange.