Kochi: The National Stock Exchange’s (NSE) Social Stock Exchange (SSE) initiative could be an effective solution to the problem of resource scarcity faced by non-profit organisations in the country, experts have opined.
The scope of SSE as an alternative funding source was discussed in detail at an awareness seminar recently organised by the NSE in Kochi.
Addressing the gathering, Dr R Balasubramaniam, the chairperson of the SSE’s advisory committee, highlighted the importance of the SSE as a catalyst to drive social change. “The SSE is a unique and innovative mechanism for socially conscious enterprises, both for-profits and non-profits, to access a reliable alternative funding source that is subject to public scrutiny.
”In India, SSE could significantly contribute to fostering professionalism, objectivity, and a culture of tracking, measuring, documenting, and reporting the social impact created by these organisations. The transparency and opportunity to drive social change at scale represent a clear win-win for all stakeholders in the ecosystem,” he said.
Amarjeet Singh, a long-time member of the Securities and Exchange Board of India (SEBI), spoke at length about the SSE mechanism and how it ensures transparency in funding for non-profit organisations (NPOs).
He exuded the hope that corporate social responsibility funds would be brought to the purview of the SSE in the future, fulfilling the demand from NPOs across the country.
“The government has already clarified that we are working on getting CSR money, at least some part of it, to the social stock exchange. The final test would be if we are able to help the last mile non-profits, which has an excellent social project and wants to raise money,” he said.
Under SEBI’s guidance, NSE-SSE has been organising pan-India seminars to raise awareness of the unique electronic fundraising platform to benefit NPOs, donors, and investors.
In Kochi, 60 NPOs and key investors, donors, and philanthropists participated. Vivek Harlalka, vice president of Investor Awareness/Services & Social Stock Exchange, National Stock Exchange (NSE), also spoke.
Touted as the brainchild of Union Finance Minister Nirmala Sitharaman, SSE has witnessed ten NPO projects raising over 22 crores on the platform to support several UN Sustainable Development Goals.