Social Stock Exchange (SSE)

Context

  • A working group constituted by the Securities and Exchange Board of India (SEBI) on social stock exchanges has recommended allowing non-profit organisations to directly list on such platforms while allowing certain tax incentives to encourage participation on the platform.

About SSE

  • The idea of a social stock exchange (SSE) for listing of social enterprise and voluntary organisations was mooted by Finance Minister Nirmala Sitharaman while presenting the Union Budget 2019-20.
  • It is a platform that allows investors to buy shares in a social enterprise that has been vetted by the exchange.
  • In London, it acts more as a directory connecting social enterprises with potential investors, while in Canada the SVX is an online platform where even retail investors can invest in funds or companies with social impact.
  • In India, the exchange will come under the ambit of the Securities and Exchange Board of India.