Sebi says working group submits report on SSE

Mumbai: The Securities and Exchange Board of India (Sebi) said on Monday the working group has submitted the report on Social Stock Exchanges (SSE) including a recommendation that non-profit organizations can directly list on such exchanges through issuance of bonds.

Sebi invited comments from the public on the report by June 30.

The other key recommendations include a range of funding mechanisms including some of the existing ones 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, the markets regulator said.

For-profit social enterprises can also list on SSE with enhanced reporting requirements, it said.

Market regulator also recommended encouraging the “giving” culture, and proposed some tax incentives for the same.

In September, Sebi had constituted a working group on SSE under the chairmanship of Ishaat Hussain, Director, SBI Foundation.

The other members of the working group are TV Mohandas Pai, Chairman of Manipal Global Education; Roopa Kudva, MD, Omidyar Network India; Amit Chandra, Chairman, Bain Capital; Saurabh Garg, Principal Secretary to Government of Odisha; Shamika Ravi, Director of Research, Brookings India; Vineet Rai, Founder and MD; and Aavishkaar Venture Management Services among others.

The working group shall examine and make recommendations with respect to possible structures and mechanisms, within the securities market domain, to facilitate the raising of funds by social enterprises and voluntary organizations.

In Budget last July, Finance Minister Nirmala Sitharaman proposed a social stock exchange for social enterprises and voluntary organisations working for social welfare to help them raise capital through debt, equity and mutual fund.