Sebi sets up committee to suggest structure, norms for social stock exchanges

Capital market regulator Sebi on Thursday set up a high-level panel to suggest possible structures and regulations for creating 'social stock exchanges' to facilitate listing and fund-raising by social enterprises as wel as voluntary organisations.

The decision follows Finance Minister Nirmala Sitharaman's budget announcement in July about setting up such exchanges to take the capital markets closer to the masses and meet various social welfare objectives.

Securities and Exchange Board of India (Sebi) said in a statement it has decided to constitute a 15-member working group under the chairmanship of Ishaat Hussain (Director at SBI 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.

T V 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 speech, 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 fund raising 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.