The pronouncement by Hon. Finance Minister, Smt. Nirmala Seetharaman, in her budget speech of July 2019, of setting up a Social Stock Exchange in the country for both Not for profit and For profit social enterprises, has resulted in creation of a separate segment on BSE catering only to Social Enterprises. The SSE, as the Social Stock Exchange is more fondly called, has now been setup as a new segment on the BSE and will enable Social Enterprises to tap into a much wider pool of investors and donors, and allow the investors and donors far greater transparency into the impact that their monies are creating.
THE NEED FOR SOCIAL STOCK EXCHANGES
- To meet the investment demand in human development sector
- To solve the fund crunch faced by social enterprises
- Transparency and accountability
- Synergy between investor and investee in social aims
- Performance- based philanthropy
Social Stock Exchange will not only help the growing investment market but also a more regulated capital market in India. It will also help impact investment to become more accessible which will increase the flow of money into sustainable development.