Press Release

Privatize Social Returns rather than Financial Returns for self-sustainable impact, says Chief General Manager- Corporation Finance Department (SEBI) in a webinar organized by ASSOCHAM 2022

Privatize Social Returns rather than Financial Returns for self-sustainable impact, says Chief General Manager- Corporation Finance Department (SEBI) in a webinar organized by ASSOCHAM 2022

Entire purpose of Social Stock exchange in India is to have more accountability and visibility for the social units, according to Mr. Jeevan Sonparote, Chief General Manager - Corporation Finance Department, Securities and Exchange Board of India (SEBI) who spoke at ASSOCHAM virtual colloquium on 'Social Stock Exchange in India: The Next Inclusive Growth Trajectory'.

For the next inclusive growth trajectory, this platform is a unique proposition and exercise for providing funds and gaining confidence of investors. There will be a greater impact of money assessment and social audit for such social enterprises to analyze the social return and provide investors end to end usage, he added. He further continued saying that ''The entire framework is for the benefit of nonprofit organizations to attain financial resources for philanthropic contribution for the longer run''. 

Mr. Hemant Gupta, MD, BIL Ryerson Technology Startup Incubator Foundation shared his perspectives of BSE and said, “Social Stock Exchange is not a separate entity but exists in the current working entities and allows the classification of new security type available for the social units''. There is a need for awareness and training to leverage the capacity building and educating nonprofit organizations on how to come on social stock exchange. He further highlighted the advantage of inclusion of social auditors and finance professionals into the mix. 

While sharing his perspectives of NSE, Mr. K. Hari, Chief Business officer, National Stock Exchange of India Ltd. (NSE) noted that Philanthropy has been widely accepted in India form past 100 years and social avenues should be prioritized in business entities. Social Stock Exchange will unlock large pools of social capital and enable opportunities for the social enterprises, he noted. SEBI worked closely and decided regulations regarding profitability and eligibility for social units to sustain in the business, this will enable a proper framework to function. 

CA. (Dr.) Ashok Haldia, Chairman, ASSOCHAM Task Force for Accounting Standards, Sustainability Accounting and Integrated Financial Reporting said SEBI Guidelines are comprehensive and forward looking as social enterprises generate employment for the country. There is a potential to mobilize funds and tailor the requirements of large community and support shareholders. He further stressed that social enterprises should gain popularity in India but capacity building with trust building to go a long way.