Budget Briefs:Government proposes creation of a social stock exchange

  1. Finance Minister has announced the setting up of a Social Stock Exchange(SSE) under the Securities and Exchange Board of India(SEBI) for listing of organisations which work for social welfare.
  2. The minister said that the exchange would help social and voluntary organisations which work for social causes to raise capital as equity or debt or a unit of mutual fund.
  3. The minister said this will be to take the capital markets closer to masses and meet the various social welfare objectives related to inclusive growth and financial inclusion.
  4. Social Stock Exchanges(SSE) already exist in countries such as Singapore,UK among others.These countries allow firms operating in sectors such as health,environment and transportation to raise risk capital.