In view of the situation arising due to the COVID-19 pandemic, markets regulator Sebi on Tuesday extended the deadline till August 15 for sending public comments on a report on social stock exchange which allows for direct listing of non-profit organisations.
This is the second time that the deadline for receiving public comments has been extended. The initial deadline was June 30, which was extended to July 15 by the regulator.
"Subsequently, Sebi has received representation seeking further extension of the timeline for submission of comments due to COVID-19 pandemic. It has been decided to extend the timeline for seeking public comments to August 15, 2020," the regulator said on Tuesday while providing a format for sending comments.
Social Stock Exchange (SSE) is a novel concept in the country and such a bourse is meant to serve private and non-profit sector providers by channelling greater capital to them.
A Sebi-appointed panel on SSE had submitted its report to the watchdog.
The working group was set up by Sebi in September 2019 under the chairmanship of Ishaat Hussain, director at SBI Foundation and former finance director at Tata Sons.
The group suggested possible structures and regulations for creating SSE to facilitate listing and fund-raising by social enterprises as well as voluntary organisations.
Direct listing of non-profit organisations through issuance of bonds and a range of funding mechanisms, which include some of the existing mechanisms such as Social Venture Funds (SVFs) under the Alternative Investment Funds, have been recommended by the panel.
A new minimum reporting standard has also been proposed for organisations which would raise funds under the SSE.
The SSE can be housed within the existing stock exchange such as the BSE and/or National Stock Exchange (NSE). This would help the SSE leverage the existing infrastructure and client relationships of the exchanges to onboard investors, donors, and social enterprises (for profit and non-profit), as per the report.
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