Investors’ awareness of the Social Stock Exchange SEBI was first set up as a non statutory body on April 12, 1988 with the objectives of investor protection and market development and regulation of securities markets. Indeed, in July 2019 the Indian Finance Minister, Smt Nirmala Sitharaman came up with the idea of Social Stock Exchange (SSE) aimed at promoting both not-for profit and for profit social enterprises. Targeted as a portion of the already established stock markets like NSE or BSE, this SSE will assist social enterprises to secure capital from the public and will be calibrated at organizations that strive to build social impact.
Regulatory Framework The framework has been spelt out by SEBI under the provisions of ICDR, LODR and AIF for the SSE. This way, the SSE can support the social enterprises’ goals of bringing about inclusive growth and ensuring financial inclusion by allowing organizations to issue equity, debt, or units resembling mutual funds.
Impact of COVID-19 This paper examines general factors in operation risk management in capital markets, especially concerning the pandemic triggered by the outbreak of the coronavirus in 2020. The SSE’s goal is to reduce the economic impact of the pandemic by mobilizing social capital to restore the lives and combat pandemic issues. It also creates awareness to people across the globe on sustainability, assisting in aligning the SDGs with the early ESG priorities.
SEBI Amendments SEBI proposes to amend the ICDR and LODR regulations to:SEBI proposes to amend the ICDR and LODR regulations to:
Enable cost accountants and their firms who are accredited with the National Institute of Securities Markets to work as social auditors and report the entity’s positive effects to the society once in every year. On the same note, there is a need to ensure the following considerations Inclusion of cost accountants in the Social Stock Exchange Governing Council. At present, the audits and the reports for the SSE must only be handled by those who are enlisted with the Institute of Chartered Accountants of India or any other comparable agency. The changes proposed were to incorporate these roles for statutory cost auditors, independent cost accountant and their firms which have a valid certificate.
Applicability The SSE is applicable to:
Nonprofit or, to a lesser extent, “mission-based” ventures, in the fields of goods and services production and delivery. Professionals qualified in accordance with the provisions of the statutes of that state and the act or firms qualified as independent cost accountants.
Conclusion The Social Stock Exchange in India is another level of improvement in controlled and clear method of mobilizing funds for social issues. It offers a legal framework for social entrepreneurship to the extent of widening the concept of philanthropy with an additional close watch on the spending capacities of such organizations for positive and efficient change.
Investors’ awareness of the Social Stock Exchange SEBI was first set up as a non statutory body on April 12, 1988 with the objectives of investor protection and market development and regulation of securities markets. Indeed, in July 2019 the Indian Finance Minister, Smt Nirmala Sitharaman came up with the idea of Social Stock Exchange (SSE) aimed at promoting both not-for profit and for profit social enterprises. Targeted as a portion of the already established stock markets like NSE or BSE, this SSE will assist social enterprises to secure capital from the public and will be calibrated at organizations that strive to build social impact.
Regulatory Framework The framework has been spelt out by SEBI under the provisions of ICDR, LODR and AIF for the SSE. This way, the SSE can support the social enterprises’ goals of bringing about inclusive growth and ensuring financial inclusion by allowing organizations to issue equity, debt, or units resembling mutual funds.
Impact of COVID-19 This paper examines general factors in operation risk management in capital markets, especially concerning the pandemic triggered by the outbreak of the coronavirus in 2020. The SSE’s goal is to reduce the economic impact of the pandemic by mobilizing social capital to restore the lives and combat pandemic issues. It also creates awareness to people across the globe on sustainability, assisting in aligning the SDGs with the early ESG priorities.
SEBI Amendments SEBI proposes to amend the ICDR and LODR regulations to:SEBI proposes to amend the ICDR and LODR regulations to:
Enable cost accountants and their firms who are accredited with the National Institute of Securities Markets to work as social auditors and report the entity’s positive effects to the society once in every year. On the same note, there is a need to ensure the following considerations Inclusion of cost accountants in the Social Stock Exchange Governing Council. At present, the audits and the reports for the SSE must only be handled by those who are enlisted with the Institute of Chartered Accountants of India or any other comparable agency. The changes proposed were to incorporate these roles for statutory cost auditors, independent cost accountant and their firms which have a valid certificate.
Applicability The SSE is applicable to:
Nonprofit or, to a lesser extent, “mission-based” ventures, in the fields of goods and services production and delivery. Professionals qualified in accordance with the provisions of the statutes of that state and the act or firms qualified as independent cost accountants.
Conclusion The Social Stock Exchange in India is another level of improvement in controlled and clear method of mobilizing funds for social issues. It offers a legal framework for social entrepreneurship to the extent of widening the concept of philanthropy with an additional close watch on the spending capacities of such organizations for positive and efficient change.