The Securities and Exchange Board of India on 29th June 2020 has prolonged the deadline till July 15 for sending comments on a report relating to the social stock exchange and permitting direct itemizing of non-profit organisations. The preliminary deadline for public comments was June 30.
The comments may be sent by email to Smt. Yogita Jadhav, DGM at (yogitag@sebi.gov.in), and Shri Abhishek Rozatkar, AGM (abhishekr@sebi.gov.in) no later than July 15, 2020.
Social Stock Exchange is a platform that allows investors to buy shares in social enterprises vetted by an official exchange. The Union Budget 2019 proposed setting up of first of its kind Social Stock Exchange in India.
SEBI formed a working group in September 2019 comprising of representatives from the government, philanthropic foundations, nonprofits and impact investors. The group suggested possible structures and regulations for creating SSE to facilitate listing and fund-raising by social enterprises as well as voluntary organisations.
To participate in the SSE, an organisation can legally be incorporated in any way, as long as the social impact is a part of its operations and strategy. To determine this, they would have to commit to a minimum reporting standard.
Further, the Social Stock Exchange would try to provide a platform where investors would invest in social enterprises authorized by the exchange. Such enterprises would have to share with the public the details of their activities and investments in a transparent manner.
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