In a significant development, the National Stock Exchange’s Managing Director and Chief Executive Officer, Ashishkumar Chauhan, announced that around four more non-profit organizations (NGOs) are gearing up to join India’s social stock exchanges (SSE) by the close of the current financial year. This revelation came on December 13 during the sidelines of the inaugural NGO listing ceremony, marking a historic day in the intersection of philanthropy and financial markets.
Chauhan highlighted the transformative impact of social stock exchanges, emphasizing their role in fostering transparency, trust, efficiency, discoverability, and cost savings. He expressed optimism about the growing trend of NGOs embracing this innovative fundraising avenue and disclosed that three or four additional listings are anticipated before the fiscal year concludes.
The Pioneering Listing: SGBS Unnati Foundation etched its name in history as the first NGO to be listed on India’s social stock exchanges. The foundation successfully raised Rs 1.8 crore from prominent contributors, including Zerodha, NABARD, Ashish Kacholia, and Govind Iyer. The funds garnered will fuel the UNXT program, aiming to train 10,000 graduates from government colleges and facilitate their employment placement.
Diverse Fundraising Possibilities: Ashishkumar Chauhan emphasized that the scope of social stock exchanges extends beyond NGOs, inviting central and state governments, as well as individuals engaged in charitable endeavors, to leverage this platform for fundraising. The SSE emerges as an inclusive avenue, welcoming diverse entities committed to making a positive social impact.
Future Prospects: The expansion of India’s social stock exchange reflects a growing synergy between philanthropy and the financial sector. As the SSE ecosystem continues to evolve, the inclusion of more NGOs and diverse entities is anticipated to enhance the platform’s influence in channeling resources towards social causes.
Awaiting Progress on Tax Sops: Despite these positive strides, Chauhan noted that there has been no tangible progress on the front of tax incentives for donors contributing to social stock exchanges. The awaited tax sops could potentially provide added encouragement for individuals and entities to actively participate in supporting social causes through this innovative financial mechanism.
In conclusion, the upcoming listings and the inaugural success of SGBS Unnati Foundation underscore the transformative potential of social stock exchanges in reshaping the landscape of philanthropic fundraising in India. As the year concludes, the SSE’s trajectory is poised for further expansion, promising a new era of collaborative impact between the financial realm and the pursuit of social good.
