NSE gets final nod from SEBI for Social stock exchange
- February 24, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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NSE gets final nod from SEBI for Social stock exchange
Subject : Economy
Section: Financial Market
Concept :
- The National Stock Exchange (NSE) has received final approval from the Securities and Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.
About Social Stock Exchange:
- SSE is a stock exchange, intended to benefit the private and non-profit sectors by directing more capital to them.
- The SSE will function as a distinct division of the current stock exchanges under the new regulations.
- Countries like the UK, Canada and Brazil have SSEs.
Who can list on SSE?
- Not-for-profit organisations (NPOs) and for-profit social enterprises with social intent and impact as their primary goal will be eligible to participate in the SSE.
- The social enterprises will have to engage in a social activity out of 16 broad activities listed by the regulator (SEBI).
- The eligible activities include-
- Eradicating hunger poverty, malnutrition and inequality
- Promoting healthcare, supporting education, employability and livelihoods
- Gender equality empowerment of women LGBTQIA communities.
- Supporting incubators of social enterprise.
- Corporate foundations, political or religious organisations or activities, professional or trade associations, infrastructure companies, and housing companies, except affordable housing, will not be eligible to be identified as social enterprises.
- According to Sebi’s framework, a minimum issue size of ₹1 crore and a minimum application size for the subscription of ₹2 lakh are currently required for SSE.
Minimum requirements for sustenance
- NPO needs to be registered as a charitable trust and should be registered for at least three years, must have spent at least ₹50 lakh annually in the past financial year.
- They should have received a funding of at least ₹10 lakh in the past financial year.