NSE Receives SEBI Nod To Launch Social Stock Exchange The report stated that the Social Stock Exchange segment will provide new avenue for social enterprises to finance social initiatives, provide them visibility and bring in increased transparency in fund mobilisation and utilisation by social enterprises
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Leading bourse NSE on Thursday said it has received final approval from markets regulator Sebi to set up a Social Stock Exchange (SSE) as a separate segment on its platform, according to s PTI report citing an official release.
Securities and Exchange Board of India (Sebi) had given an in-principle approval to National Stock Exchange (NSE) for setting up the exchange last December and according to a statement by NSE, the final clearance was received on February 22.
A social stock exchange is a platform that allows the listing of non-profit organizations and non-government organizations that allows these organizations to raise funding for social causes and purposes apart from getting donations. The report stated that the Social Stock Exchange segment will provide a new avenue for social enterprises to finance social initiatives, provide them visibility and bring in increased transparency in fund mobilisation and utilisation by social enterprises.
"To bring in awareness, we have been conducting various events and hand holding social enterprises currently at various stages of onboarding on the exchange," NSE MD and CEO Ashishkumar Chauhan reportedly said in a statement.
Moreover, Chauhan also urged social enterprises to get in touch with the NSE to understand the mechanism and benefits from registering and listing on the social stock exchange segment.
As per previous media reports, in July 2022, Sebi had notified a framework for the social stock exchange that had been developed on the basis of the recommendations of a working group and technical group constituted by the regulator. Also, the idea of SSE was first floated by Finance Minister Nirmala Sitharaman in her Budget Speech 2019-20, under the regulatory ambit of Securities and Exchange Board of India, for listing social enterprise and voluntary organizations.
"It is time to take our capital markets closer to the masses and meet various social welfare objectives related to inclusive growth and financial inclusion. I propose to initiate steps towards creating an electronic fund raising platform- a social stock exchange-under the regulatory ambit of Securities and Exchange Board of India for listing social enterprises and voluntary organizations working for the realization of a social welfare objective so that they can raise capital as equity, debt or as units like a mutual fund," the minister had said in her Budget 2020.