Finance Minister Nirmala Sitaraman proposed in the Union Budget that a social stock exchange will be created to help organizations in the social sector to find funds.
To obtain the social welfare objective, this social stock exchange will help in raising capital as equity, debts or as units like the mutual funds.
- The electronic fundraising platform will list social enterprises in the same way as public listed companies under SEBI.
- This system will bring capital markets closer to the market and meet various social welfare objectives related to inclusive growth.
- This social stock exchange will help social and voluntary organizations to find investors.
- It will allow social organizations to raise capital in the form of equity, debt, or mutual funds.
- Social Stock Exchanges (SSE) already exist in the UK, Canada, Singapore, South Africa, Brazil, Jamaica and Kenya