NSE gets the final SEBI approval to launch Social Stock Exchange

• The idea of a social stock exchange was first mooted in the Union Budget 2019-20 to enable entities involved in social activities such as charitable trusts and non-profit organisations (NPO) to access the capital market for funds.
• NPOs and even for-profit social enterprises (FPE) will need to register on the exchange and mobilise funds through instruments such as zero coupon zero principal (ZCZP) through a public offering or even a private placement.

The Pandemic and the social stock exchange:

The idea of social stock exchange gained currency during the pandemic in the wake of growing need for capital for social enterprises at reasonable cost. The minimum issue size stands at Rs 1 crore now and the minimum application size for subscription is Rs 2,00,000. Subscription to such issues would be considered as philanthropic.

Also Read: Ind-Ra anticipates India’s growth to be below 6% in FY24