The Social Stock Exchange is a platform within traditional stock exchanges dedicated to listing and trading securities of social enterprises and non-profit organizations. It seeks to connect these entities with investors in order to raise capital via equity, debt, or units such as mutual funds.
Content :
- What Is Social Stock Exchange In India?
- Benefits Of Social Stock Exchange
- Does India have a social stock exchange?
- Social Stock Exchange Listed Companies In India
- What Is Social Stock Exchange? – Quick Summary
- Social Stock Exchange Meaning – FAQs
What Is Social Stock Exchange In India?
Social Stock Exchange in India operates under SEBI’s guidance and is designed to support non-profit organizations in raising capital. It offers a unique platform for such entities to connect with investors and secure funding.
This initiative is part of India’s broader strategy to integrate social welfare objectives with market-based funding. The SSE in India facilitates capital for socially beneficial projects and ensures transparency and accountability in their operations.
It stands as a significant move towards blending financial investment with social impact, potentially transforming how social entrepreneurship is viewed and funded in the country. This platform is pivotal for organizations focused on sustainable development goals, providing them with the necessary visibility and financial support to make a larger impact.
Benefits Of Social Stock Exchange
The main benefit of the Social Stock Exchange is its role in promoting economic growth by supporting socially responsible/non-profit businesses. It promotes ethical investment practices by bridging the gap between social enterprises and potential investors.
- Transparency and Accountability: The SSE’s strict reporting standards enhance trust among investors by ensuring that social enterprises are transparent and accountable for their actions and impacts.
- Access to Capital: It creates new funding opportunities for social enterprises, allowing them to explore different financial resources to support their missions.
- Investor Awareness: The SSE educates investors about the importance and benefits of social impact investments, thereby fostering a culture of responsible and informed investing.
- Market Exposure: Social enterprises gain greater visibility and credibility through the SSE, which is vital in attracting more investors and resources.
- Impact Measurement: The SSE provides a systematic approach to evaluating the social impact of investments, aligning financial objectives with societal goals, and ensuring responsible investing.
Does India have a social stock exchange?
India’s Social Stock Exchange (SSE) witnessed its inaugural listing with Bengaluru’s SGBS Unnati Foundation, raising Rs 1.8 crore from high net-worth individuals. Demonstrating SSE’s potential in aiding social causes, there are currently 32 entities on BSE-SSE and 31 on NSE-SSE.
Social Stock Exchange Listed Companies In India
Social Stock Exchange Listed Companies in India saw their first listing with SGBS Unnati Foundation, a pioneering not-for-profit organization. Beyond SGBS Unnati Foundation, the SSE under NSE and BSE includes various other organizations committed to diverse social causes, which are as follows:
| Organization | Exchange | Area of Work |
| Development Management Foundation | NSE, BSE | Development management education |
| Gramalaya Trust | NSE | Water, sanitation, hygiene in various areas |
| Green Age | BSE | – |
| Grey Sim Learning Foundation | NSE | Vocational skills for youth employability |
| Krushi Vikas Va Gramin Prashikshan Sanstha | NSE | Betterment of rural and urban communities |
| Lighthouse Communities Foundation | BSE | Livelihood enablement |
| Masoom Trust | NSE | Empowering night schools and youth |
| Missing Link Trust | NSE, BSE | Addressing sex trafficking and missing children |
| Mukti | NSE | Aid for the poor and distressed globally |
| Opportunity Foundation Trust | NSE, BSE | Education for girls to escape poverty |
| People’s Rural Education Movement | BSE | Development of marginalized communities in Odisha |
| Possit Skill Organisation | NSE, BSE | Skill development for unemployed youth |
| Ratna Nidhi Charitable Trust | NSE | Poverty alleviation in Mumbai |
| Saath Charitable Trust | BSE | Empowerment of marginalized communities |
| Samvedna Development Society | NSE | – |
| Score Livelihood Foundation | NSE | Sustainable livelihood options |
| SGBS Unnati Foundation | NSE, BSE | Youth empowerment and employment |
| Shri JagatBharti Education and Charitable Trust | BSE | – |
| SATHI | BSE | Improving lives of women and children |
| United Way of Delhi | NSE | Education, financial stability, health access |
| United Way Mumbai | NSE | Education, financial stability, health access |
| Vatsalya Trust | BSE | – |
| Voice Society | NSE | Consumer rights awareness |
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What Is Social Stock Exchange? – Quick Summary
- Social Stock Exchange is a platform within traditional exchanges for listing and trading securities of social and non-profit organizations to connect with investors to raise capital.
- Social Stock Exchange in India operates under SEBI to support social enterprises in raising capital, blending financial investment with social impact.
- One of the main benefits of social stock exchange is that it promotes economic growth by supporting socially responsible businesses and bridging the gap between social enterprises and investors.
- India’s Social Stock Exchange marked its beginning with the listing of SGBS Unnati Foundation, showcasing the SSE’s potential in social welfare initiatives.
- Listed Companies on India’s SSE include diverse organizations like SGBS Unnati Foundation, Development Management Foundation, Gramalaya Trust, and many others, each dedicated to various social causes.
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Social Stock Exchange Meaning – FAQs
The Social Stock Exchange is a specialized stock exchange segment designed for listing and investing in social enterprises and not-for-profit organizations, focusing on creating a positive social impact.
Both individual and institutional investors can invest in SSE-listed entities, supporting projects that align with their social impact goals.
Investors benefit social stock exchange by contributing to societal welfare while potentially receiving financial returns. SSE also allows them to diversify their portfolio with socially responsible investments.
The first social stock exchange in India was inaugurated with the listing of SGBS Unnati Foundation, marking a significant step in blending social impact with investment opportunities.
The objectives of social stock exchanges are as follows:
- To provide a transparent platform for social enterprises to raise capital.
- To offer investors opportunities to engage in socially responsible investing.
- To ensure accountability and mea
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