Market regulator SEBI has invited comments from public on a report on Social Stock Exchange-SSE for listing social enterprise and voluntary organisations.
Following the announcement in the Budget, SEBI had formed a working group on SSE headed by Ishaat Hussain and consisting of representatives of the stakeholders active in the space of social welfare, social impact investing, representatives from ministry of finance, the stock exchanges and non-government organisations (NGOs).
SEBI says, "Social Stock Exchange-SSE is a novel concept in India. The working group had a series of consultation with various stakeholders including voluntary organisations, social enterprises and philanthropic organizations in order to assess the difficulties faced by them in raising funds and donating funds."
Here are key recommendations submitted by the working group...
Non-profit organizations can directly list on SSE through issuance of bonds.
A range of funding mechanisms have been recommended including some of the existing mechanisms such as Social Venture Funds (SVFs) under the Alternative Investment Funds.
A new minimum reporting standard has been proposed for organizations which would raise funds under SSE.
For-profit social enterprises can also list on SSE with enhanced reporting requirements.
To encourage "giving" culture, some tax incentives have also been recommended.