The Securities and Exchange Board of India (SEBI) on September 19 set up a high-level panel to suggest possible structures and regulations for creating 'social stock exchanges'.
These social stock exchanges would facilitate listing and fund-raising by social enterprises as well as voluntary organisations.
The decision comes after Finance Minister Nirmala Sitharaman's Budget, which specified such exchanges "to take the capital markets closer to the masses and meet various social welfare objectives".
The capital market regulator in a statement said the 15-member working group under the chairmanship of Ishaat Hussain, who is Director at State Bank of India Foundation and former Finance Director at Tata Sons.
The working group will examine and make recommendations with respect to possible structures and mechanisms within the securities market domain to facilitate raising of funds by social enterprises and voluntary organizations, SEBI said.
TV Mohandas Pai, Chairman of Manipal Global Education and former director of Infosys; Roopa Kudva of Omidyar Network India; Amit Chandra of Bain Capital; Saurabh Garg, Principal Secretary to Odisha government; Shamika Ravi, Brookings India Director of Research and member of PM's Economic Advisory Council; Vineet Rai of Aavishkaar Venture; and Girish G Sohani of BAIF Development Research Foundation will also be part of the group.
Other members will include representatives from the Ministry of Corporate Affairs, Department of Economic Affairs, BSE and NSE, while there would be three Sebi officials also on the panel, including one as the Convener.
In her maiden Budget, Sitharaman had said there is a need to take the capital markets closer to the masses for inclusive growth and financial inclusion.
"I propose to initiate steps towards creating an electronic fundraising platform – a social stock exchange - under the regulatory ambit of Sebi for listing social enterprises and voluntary organizations working for the realization of a social welfare objective so that they can raise capital as equity, debt or as units like a mutual fund," she had said.
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