Social stock Exchange: A financing platform for social enterprises in India

India’s economic imperative is to feed, educate, clothe, and empower more than a billion people in ways that grow and conserve its natural, social, and sustainable heritage. It cannot expect to accomplish this lofty goal on the strength of conventional corporate capital alone. The evidence of that is that there are around 3 million non-profit organizations. One of the significant hurdles these not-for-profit organizations (NPOs) face is the shortage of financial assistance to carry on their efforts and the lack of formal structure to raise funds. Conversely, some people would want to donate/invest/fund NPOs or For-Profit Organizations (FPEs) carrying on programs and projects that have a social impact. However, many stop short due to a lack of confidence in how the funds are utilized due to the absence of a formal structure. This is where the Social Stock Exchange (SSE) would give NPOs/FPEs (For-Profit Organizations) a social objective, access to donors, and confidence in the Donors on the effect of their donations/contributions. Social companies stress social good over profitability, unlike traditional stock exchange listings. They are non-profit-seeking organizations, and the stock market gives them alternative ways to raise money. These businesses can amass money by issuing non-dividend shares, enabling them to forgo annual shareholder payouts. This only applies to non-profit companies with social purposes that want to draw donors; it does not apply to for-profit companies.