Union Finance Minister Nirmala Sitharaman presented the Economic Survey 2023-24 on July 22. Following the presentation, Chief Economic Adviser Dr. V. Anantha Nageswaran held a press conference to address media queries regarding the survey.
As per the report the Social Stock Exchange (SSE) plays an important role in bridging the financing gap by providing alternative fund-raising instruments for achieving socio-development goals. Through rigour, transparency, and scrutiny, the SSE platform ensures that donations reach credible entities, inspiring confidence in the ecosystem and paving the way for its scalability. The extended tax exemption played a dominant role in the progression of SSE.
The report detailing the significance of the SSE. The SSE aims to bridge the financing gap by providing alternative fund-raising instruments for achieving socio-development goals. SSE is a separate segment of the existing stock exchange, which can help social enterprises like nonprofit organisations (NPOs) and non-government organisations (NGOs) raise funds from the public through the stock exchange mechanism.
The contributions towards the social sector projects listed on SSE are made through a unique security, known as Zero Coupon, Zero Principal (ZCZP) instrument as the nature of funding is akin to a donation and, as such, does not promise any payment of coupon or return of the principal amount.
The Survey also pointed out that to scale up the ecosystem, the Government has recently extended tax exemption under section 80G of the Income Tax Act, 1961, to the contributions made through ZCZPs on SSE.
To be listed on SSE, NGOs/NPOs must disclose their past social audit reports, verifying proven expertise and commitment to executing social sector projects. As eligibility criteria, the regulatory framework requires that the NGOs/NPOs have at least 3 years of field experience in executing social sector projects. Further, to ensure accountability of fund-
The report also pointed out the progress of SSE. As of April 2024, 51 NPOs are registered on the BSE, and 50 (11 undergoing renewal) are registered on the NSE. Nine NPOs have raised funds on SSE, amounting to a total of ₹ 12.4 crore. These projects span social projects in education, livelihood generation, skill development, etc.
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