The Social Stock Exchange (SSE) is a platform that connects investors with companies that have a social or environmental mission, in addition to a financial one. It aims to create a transparent marketplace where investors can put their money into companies that align with their values and promote positive social and environmental impact.
The SSE typically lists companies that are certified as social enterprises, impact-driven businesses, and organizations that have a clear social or environmental mission. These companies undergo a rigorous screening process to ensure they meet the SSE’s criteria for social impact and sustainability.
Investors interested in investing in the SSE can access information about the companies listed on the platform, including their social and environmental impact metrics, financial performance, and governance practices. The SSE also provides tools for investors to track their investments’ impact, such as impact reports and social performance indicators.
The SSE is a relatively new concept and is not yet available in all countries. It is seen as a promising approach to promoting impact investing and driving social and environmental change through financial markets.
Which entity can identify itself as a social enterprise?
A not for profit organization is an entity which meets the criteria to be identified as a social enterprise and is any of the following entities:
- a charitable trust registered under the public trust statute of the relevant state;
- a charitable society registered under the Societies Registration Act, 1860 (21 of 1860);
- a company incorporated under section 8 of the Companies Act, 2013 (18 of 2013);
- any other entity as may be specified by SEBI;
For profit social enterprise
A for profit social enterprise is an entity which meets the criteria to be identified as a
social enterprise and is any of the following entities:
- A company under the Companies Act, 2013, operating for profit and does not
- include a company incorporated under section 8 of the Companies Act, 2013 (18 of 2013);
- A body corporate operating for profit
Frequently Asked Questions document on Social Stock Exchange by NSE
NSE provided document titled “Social Stock Exchange FAQs” that provides information about the concept of a Social Stock Exchange (SSE). The document defines SSE as a platform that connects social enterprises and investors interested in funding such enterprises.
The document explains that SSE aims to promote social and environmental objectives, in addition to financial goals. It notes that social enterprises can use the SSE to raise capital for their operations, and investors can find opportunities to invest in businesses that align with their values.
The document also explains the eligibility criteria for social enterprises to be listed on the SSE. Social enterprises must have a clear social or environmental mission and must use a significant portion of their profits towards achieving that mission. They must also meet financial criteria and comply with regulatory requirements.
In addition, the document outlines the benefits of SSE for both social enterprises and investors. Social enterprises can access a new source of capital and gain recognition for their social and environmental impact. Investors can find opportunities to invest in businesses that align with their values and contribute to positive social and environmental outcomes.