By Samhita Social Ventures
October 12, 2021
The Securities and Exchange Board of India (SEBI) approved the creation of the ‘Social Stock Exchange’ which is widely perceived to be a game changer in the social impact segment.
According to Samhita’s report, SSE holds the potential of becoming an agent of change for civil society. It can theoretically unlock new capital, promote equity, introduce new instruments for donors to fund operations, streamline regulations and create an ecosystem of enabling frameworks for civil society.
But on the other hand the report also lays down the risks such as duplicating the operations of a conventional stock exchange, segmenting or further exacerbating inequalities within and between sectors, and failing to create a strong culture of giving. Stakeholders must create a representative that incorporates the concerns and wisdom of civil society and social organisations.
An SSE can be a means for the markets to serve the society; not for society to serve the markets.