The Securities and Exchange Board of India (SEBI) has recently constit...
Key Points
- SEBI had set up a high-level panel to suggest possible structures and regulations for creating 'social stock exchanges'.
- To facilitate listing and fund-raising by social enterprises as well as voluntary organisations.
- The committee will be headed by Ishaat Hussain (Director at SBI Foundation and former Finance Director at Tata Sons).
- He outlined its vision and made recommendations to include the participation of non-profit organisations (NPOs) and for-profit enterprises (FPEs) on social stock exchanges subject to committing to minimum reporting requirements.
Additional Information
- Securities and Exchange Board of India (SEBI) is a statutory body and a market regulator, which controls the securities market in India.
- The basic functions of SEBI are to protect the interests of investors in securities and to promote and regulate the securities market.
- SEBI is run by its board of members.
- The board consists of a Chairman and several other whole time and part-time members.
- The chairman is nominated by the union government.
- Before SEBI came into existence, the Controller of Capital Issues was the regulatory authority; it derived authority from the Capital Issues (Control) Act, 1947.
- In 1988, SEBI was constituted as the regulator of capital markets in India.
- Initially, SEBI was a non-statutory body without any statutory power.
- Following the passage of the SEBI Act by Parliament in 1992, it was given autonomous and statutory powers.
Important point
- Chairman: Ajay Tyagi
- Headquarter: Mumbai
The Securities and Exchange Board of India (SEBI) has recently constit...
Constitution of the Committee on Social Stock Exchanges (SSE)
The Securities and Exchange Board of India (SEBI) has recently constituted a committee on Social Stock Exchanges (SSE) under the chairmanship of Ishaat Hussain. This committee has been set up to explore and promote the concept of SSE in India.
Role of Ishaat Hussain as Chairman
Ishaat Hussain, the former finance director of Tata Sons, brings a wealth of experience and knowledge to the committee. His leadership will be crucial in guiding the committee's efforts to develop a framework for SSEs in India.
Importance of Social Stock Exchanges
Social Stock Exchanges are platforms that facilitate the raising of capital by social enterprises and organizations working for social welfare. By trading shares of these organizations, investors can support causes they care about while also generating financial returns.
Objectives of the Committee
The committee will be tasked with studying the feasibility of establishing SSEs in India, identifying the regulatory requirements, and proposing a framework for the functioning of SSEs. It will also work towards creating awareness about SSEs among investors and organizations.
Expected Impact of SSEs in India
The establishment of Social Stock Exchanges in India could open up new avenues for impact investing and mobilize funds for social enterprises. It has the potential to channel investments towards sustainable and socially responsible initiatives, thereby driving positive change in society.
In conclusion, the appointment of Ishaat Hussain as the chairman of the committee on Social Stock Exchanges signals a significant step towards promoting impact investing and social welfare in India. His leadership, combined with the expertise of the committee members, is expected to pave the way for the development of SSEs in the country.
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