Social Stock Exchange

Dec. 15, 2023

Recently, the Unnati Foundation became the first entity to list on the social stock exchanges (SSE).

About Social Stock Exchange:

It functions as a separate segment within the existing stock exchange and help social enterprises raise funds from the public through its mechanism.
It would serve as a medium for enterprises to seek finance for their social initiatives, acquire visibility and provide increased transparency about fund mobilisation and utilisation.
Retail investors can only invest in securities offered by for-profit Social Enterprises(SEs) under the main Board.
In all other cases, only institutional investors and non-institutional investors can invest in securities issued by SEs.

Who is eligible?

Any social enterprise, Non-Profit Organisation (NOPs) or For-Profit Social Enterprises (FPEs), that establishes its primacy of social intent can get registered or listed on the Social Stock Exchange segment.
As per the SEBI’s regulation, the enterprises must be serving to:
- eradicate either hunger, poverty, malnutrition and inequality;
- promoting education, employability, equality, empowerment of women and LGBTQIA+ communities; working towards environmental sustainability;
- protection of national heritage and art or bridging the digital divide, among other things.

Source : Unnati becomes the first entity to list on the social stock exchange