Mint Explainer: Why are social stock exchanges needed?
tax benefits that are identical to donations made to charity trusts currently. Currently, raising money for charity is a big challenge for many NGOs. A key source of funding comes from the corporate social responsibility (CSR) spending by big firms.
Some NGOs also reach out to wider set of donors through special campaigns. SSE brings together NGOs and investors on a single platform. Through SSE, a social service firm will be able to reach out to wide range of donors.
SSEs can be credible platforms for donations since the transparency norms put in place by the Securities and Exchange Board of India (Sebi) ensure that firms disclose all relevant information including where would proceeds be used and how. Just like listed companies, SSE listed entities are required to make periodical disclosures regarding utilization of funds. Any not-for-profit organization focused on social objections intended for unattended and underprivileged populations or regions.
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