Leading bourse NSE on Thursday mentioned it had obtained the final approval from markets regulator SEBI to arrange social stock alternate (SSE) as a separate section on its platform.
The final clearance was obtained on February 22, the National Stock Exchange (NSE) mentioned in a press release.
The SSE section will present a brand new avenue for social enterprises to finance social initiatives, present them visibility and herald elevated transparency in fund mobilisation and utilisation by social enterprises.
“To bring in awareness, we have been conducting various events and hand holding social enterprises currently at various stages of onboarding on the exchange,” NSE MD and CEO Ashishkumar Chauhan mentioned.
He urged social enterprises to get in contact with the NSE to grasp the mechanism and advantages from registering and itemizing on the social stock alternate section.
Under the principles, any social enterprise, non-profit organisation (NPO) or for-profit social enterprise (FPE), that establishes its primacy of social intent can get listed on the SSE section.
For eligible NPOs, step one for onboarding begins with the registration on the social stock alternate section.
Post itemizing, NPOs can provoke the fund mobilisation course of by issuance of devices resembling zero coupon zero principal (ZCZP) by way of a public subject or non-public placement.
Currently the rules have prescribed the minimal subject dimension as ₹1 crore and minimal utility dimension for subscription at ₹2 lakh for ZCZP issuance.
For FPE, the method of subject and itemizing of securities can be identical as relevant for subject and itemizing of securities underneath the extant processes of the alternate – primarily based on eligibility standards for the principle board, SME Platform or innovators development platform, as relevant along with the standards supplied to be eligible as social enterprises.
