Leading bourse NSE has received final approval from markets regulator Sebi to set up a Social Stock Exchange (SSE) as a separate segment on its platform.
This was received on February 22.
Role of Social Stock Exchange
The Social Stock Exchange segment will provide a new avenue for social enterprises to finance social initiatives, provide them visibility and bring in increased transparency in fund mobilization and utilization by social enterprises.
“To bring in awareness, we have been conducting various events and hand holding social enterprises currently at various stages of onboarding on the exchange,” NSE MD and CEO Ashishkumar Chauhan said.
Further, he urged social enterprises to get in touch with the NSE to understand the mechanism and benefits from registering and listing on the social stock exchange segment.
How to become part of SSE segment
Under the rules, any social enterprise, Non-Profit Organization (NPOs) or For-Profit Social Enterprises (FPEs), that declared its social intent can get listed on the SSE segment.
This includes NPOs for whom the first step is onboarding which begins with the registration on the Social Stock Exchange segment.
Post listing, NPOs can initiate the fund mobilization process by issuance of instruments such as Zero Coupon Zero Principal (ZCZP) through a public issue or private placement.
Currently the regulations have prescribed the minimum issue size as Rs 1 crore and minimum application size for subscription at Rs 2 lakh for ZCZP issuance.
FPEs
For FPE, the process of issue and listing of securities would be the same as applicable for issue and listing of securities under the extant processes of the exchange.
It would be based on eligibility criteria for the main board, SME Platform or innovators growth platform, as applicable in addition to the criteria provided to be eligible as Social Enterprises.
