GS TIMES STAFF
Stock exchange regulator SEBI on May 6 made public the report of public technical group (TG) on social stock exchanges (SSEs).
- The expert panel headed by Harsh Bhanwala, ex-Chairman, Nabard, has recommended that corporate foundations, political and religious organisations and activities, professional or trade associations, infrastructure and housing companies should be made ineligible to raise funds using the SSE mechanism.
- The expert panel has recommended that both for-profit (FP) and not-for-profit organisations (NPO) should be allowed to tap the SSE provided they are able to demonstrate that social intent and impact.
- The report says, modes available for fundraising for NPOs shall be equity, zero coupon zero principal bond (ZCZP), development impact bonds, social impact fund, currently known as social venture fund (SVP) with 100 per cent grants-in grants out provision, and donations by investors through mutual funds.
- The proposal to set up social stock exchanges (SSEs) in the country was first floated during the Union Budget in 2019.
