How Social Stock Exchange will help raise funds, regulate social sector

NPOs looking to raise funds will have to list themselves on the exchange, but to do so they will have to meet minimum standards of reporting

It promises to be a win-win for both. On the one hand, it gives an opportunity to NGOs with limited financial means to raise more funds from diverse sources and new financial instruments. On the other, donors and philanthropic bodies are assured that their money is going to credible and legitimate organisations that will give them the social impact report of how the fund is being used — thereby reducing the trust deficit.

What we’re talking about here is the “Social Stock Exchange” (SSE), an idea mooted by Finance Minister Nirmala Sitharaman in the Budget speech. The exchange would be