A technical group on social stock exchanges(SSEs), constituted by the Securities and Exchange board of India(Sebi), has recommended that political and religious organizations, trade organizations as well as corporate foundations should not be allowed to raise funds through SSEs.
Corporate foundations, political or religious organizations activities, professional or trade associations, infrastructure and housing companies will not by permitted on SSE, said the technical group report released by Sebi on Thursday. Sebi set up the technical group in September under the chairmanship of Harsh Bharrwala, former chairman of NABARD. The technical group report said both for Profit Enterprise and not for profit Organization will be eligible to tap the SSE if they are able to show their primary goals are social internet and impact.
SSE are engaged in at least one of the 15 board eligible activities, They target underserved or less privileged population segments regions and should have at least 67% of its activities qualifying as eligible activities to the target population. The panel has recommended different modes of fund raising for NPOs and FPEs. For NPOs it has recommended fundraising through equity, zerocoupon zero principal bonds. Development impact bonds, social impact bonds, social impact fund with 100% grants in grants or provision, and donations by investors through mutual funds