NSDC registers itself on SSE to widen capital pool for social enterprises

The Social Stock Exchange (SSE) has been developed with the sole motive of facilitating social enterprises in raising funds from the public through the stock exchange mechanism

National Skill Development Corporation (NSDC) has registered itself on the Social Stock Exchange (SSE). This has been done to give a further push to India's socio-economic progress. Through this, the government of India intends to support organisations that work towards helping disadvantaged communities.

The SSE was launched to provide a wider pool of capital to social enterprises and voluntary organisations working in the social sector. The idea was first put forth by Finance Minister Nirmala Sitharaman in her FY 2019-20 Budget speech. This was done to empower enterprises working in the social welfare sector to raise capital using tools like equity, debt, or as units like a mutual fund.

Talking about the listing, CEO and MD of NSDC International said, "It is my firm belief that NSDC registering on SSE will not only help in raising funds for its various skilling initiatives but also scale up its reach and extend the benefits of skill training across the country. Furthermore, listing on the SSE will also increase transparency and accountability, allowing the NSDC to showcase its social impact and attract more investments in the future."

Speaking about the development, Hemant Gupta, MD, BIL Ryerson Technology Startup Incubator Foundation; Head - BSE Social Stock Exchange said, "The Indian Social Stock Exchange is not just a formalisation of the current framework of social development funding, and not only enables new pools for funding to flow into the sector but has the potential of incentivizing innovation and promoting pay for performance structures."

What is the Social Stock Exchange?

The Social Stock Exchange (SSE) is different from the existing stock exchanges. It has been developed with the sole motive of facilitating social enterprises in raising funds from the public through the stock exchange mechanism.

The SSE aims to provide a new avenue for social enterprises to finance social initiatives, give them visibility, and increase transparency in fund mobilisation and utilisation by social enterprises.

Not-for-profit organisations that fulfil the registration criteria can register on the SSE.