oppn parties Social Stock Exchange Is A Good Idea from Sebi

News Snippets

  • In a first, the Supreme Court recognizes marital rape, although for the limited purpose of allowing married women the right of abortion up to 24 weeks if they conceived as a result of forced sex by their husbands
  • Air India cuts discounts on base fare to students and senior citizens from 50% to 25%
  • Mallikarjun Kharge and Digvijay Singh are being touted as frontrunners to take on Shashi Tharoor in the elections for the post of Congress president
  • Sonia Gandhi will decide who will be Rajasthan CM if she feels there is a need to change guard after the near-rebellion by MLAs in the state
  • Ashok Gehlot bowed out of the race for being Congress president after meeting Sonia Gandhi
  • India has moved to the 40th spot in the innovation index, up 6 spots from last year
  • DGGI has alleged that top insurance companies, banks and NBFCs has committed a fraud of Rs 800cr by claiming input tax credit without underlying supplies
  • The Centre will borrow Rs 10000cr less than planned earlier due to good revenue collections
  • At $23.9bn, India's current account deficit widened to 2.8% in Q1, the worst in four years
  • Stocks continue to flounder on Thursday: Sensex sheds 188 points to 56409 and Nifty 40 points to 16818
  • The 36th National Games were declared open on Thusrday by PM Modi in front of a record crowd in Motera near Ahmedabad
  • Jasprit Bumrah most likely to miss T20 World Cup due to recurrence of back injury
  • PFI's political wing, the SDPI is on EC radar and action will follow soon if discrepancies are detected
  • Ashok Gehlot to meet Sonia Gandhi today, says all issues will be sorted out soon
  • Referring to the PFI ban, most Muslim organizations ask the government to take similar action against right wings organizations like the RSS, Bajrang Dal, VHP and the like
In a landmark order, Supreme Court rules that all women, married or unmarried, are entitled to safe and legal abortion up to 24 weeks of pregnancy as per the MTP Act
oppn parties
Social Stock Exchange Is A Good Idea from Sebi

By Ashwini Agarwal
First publised on 2021-10-06 12:58:30

It is not businesses alone that need funds. Social enterprises, whether for-profit or not-for-profit, also need funds, to run their operations. They have to depend on donations, from good Samaritans in India and abroad, similar enterprises who value their work and also from the CSR funds of companies. But if people are willing to invest in such social enterprises, why should they depend only on donations? Working on this premise, the Securities and Exchange Board of India (Sebi) has now announced that social enterprises, both for-profit and non-profit, will be allowed to access the stock markets through a to-be-created social stock exchange where they will be listed for trading. The enterprises will be allowed to access the equity, bond and mutual funds markets. Obviously not all social enterprises will be allowed such access. Only those working in the areas of working to eradicate hunger, poverty and malnutrition, promoting healthcare, education, gender equality, livelihoods and empowerment of women and LGBT communities as well as encouraging environmental sustainability, among others. They will be allowed to raise finances through social impact funds having a corpus of Rs 5 crore.

But the contours of the scheme need to be defined well since NGOs and social enterprises have not in the good books of the ruling dispensation. It has tried to block access to funds and has otherwise harassed a large number of big and small social enterprises, including many that have a global footprint. Hence there is a huge chance that rules will be drafted in such a manner that it would exclude a large number of NGOs that are doing exemplary work but are viewed with suspicion for their stand often goes against the government. That would be unfair. Although NGOs work to supplement government work in social areas, since they work among the underprivileged and the marginalized and try to highlight the difficulties faced by them, sometimes they come in conflict with the administration and the more vocal among them are always viewed with suspicion. But if the access to equity is restrictive and selective, it will fail to meet the purpose. Hence, the scheme must be well-defined, transparent and open to all that meet the stated criteria.