At the NSE’s Accelerating Social Impact event, Ashishkumar Chauhan, managing director and CEO, shared that the upcoming listing of a non-profit organisation (NPO) on the SSE is expected to raise Rs 14 crore, surpassing the total of Rs 12 crore raised by the previous eight listings combined. Currently, the SSE has registered 65 NPOs, with eight already listed.
Chauhan emphasized that SEBI has addressed challenges faced by NPOs by introducing structured fundraising mechanisms such as zero coupon, zero principal bonds. SEBI has also made the platform more conducive for social enterprises by reducing the minimum issue size to Rs 50 lakh and the minimum application size to Rs 10,000.
R Balasubramaniam, Chairperson of the Advisory Committee on SSE to SEBI, highlighted that the SSE enhances transparency and trust for investors, ensuring consistent funding and accountability from NPOs. He noted that India is pioneering the concept of a government-initiated social stock exchange, unlike other countries where exchanges or other mechanisms took the lead.
Balasubramaniam expressed satisfaction with the response to NPO listings, foreseeing a significant reduction in the cost of capital for these organisations as more investors participate.
The SSE was first proposed in the Union Budget of 2019 to leverage the regulatory framework of the securities market for social sector fundraising. The inaugural NPO listing occurred in December last year. Leena Kumar from the Ministry of Finance highlighted that as the SSE concludes its first operational year, public social impact assessment reports will soon be available. These reports will evaluate the impact of funded projects and will play a crucial role in investor decision-making.
Kumar also underscored the SSE’s role in providing new avenues for corporates to enhance their social contributions, especially in the context of increasing interest in Environmental, Social, and Governance (ESG) investing.
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