November 28

India Wants to Leverage Its Stock Market for Social Impact. Will It Work?

By Rohit Inani

Indian social businesses and organisations will soon be able to raise funds on the stock exchange, with the securities regulator having approved the setting up of a social stock exchange.

This could help spur impact investing and fill the gaps in India’s public sector spending, say impact investors and social sector organisations, at a time when government coffers are strained and inflation worries are stalling public spending.

In October 2022, the Securities and Exchange Board of India (SEBI) – which last year  approved the setting up of the Social Stock Exchange (SSE) – published a detailed framework for the exchange that will operate within the Bombay Stock Exchange (BSE), the country’s largest.

Non-profit organisations and for-profit enterprises working toward creating social impact could list and freely trade their shares on the exchange for a range of socioeconomic causes such as healthcare, education, poverty alleviation, malnutrition and affordable housing.

Photo courtesy of Ray Witlin.

Source: Eco-Business (link opens in a new window)

Investing, Social Enterprise
business development, global development, impact investing