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In view of the scenario arising because of the COVID-19 pandemic, markets regulator Sebi on Tuesday prolonged the deadline until August 15 for sending public comments on a report on social stock exchange which permits for direct itemizing of non-profit organisations.
This is the second time that the deadline for receiving public comments has been prolonged. The preliminary deadline was June 30, which was prolonged to July 15 by the regulator.
“Subsequently, Sebi has received representation seeking further extension of the timeline for submission of comments due to COVID-19 pandemic. It has been decided to extend the timeline for seeking public comments to August 15, 2020,” the regulator stated on Tuesday whereas offering a format for sending comments.
Social Stock Exchange (SSE) is a novel idea within the nation and such a bourse is supposed to serve personal and non-profit sector suppliers by channelling better capital to them.
A Sebi-appointed panel on SSE had submitted its report to the watchdog.
The working group was arrange by Sebi in September 2019 beneath the chairmanship of Ishaat Hussain, director at SBI Foundation and former finance director at Tata Sons.
The group recommended attainable buildings and laws for creating SSE to facilitate itemizing and fund-raising by social enterprises in addition to voluntary organisations.
Direct itemizing of non-profit organisations via issuance of bonds and a variety of funding mechanisms, which embody a number of the present mechanisms equivalent to Social Venture Funds (SVFs) beneath the Alternative Investment Funds, have been advisable by the panel.
A brand new minimal reporting customary has additionally been proposed for organisations which might elevate funds beneath the SSE.
The SSE could be housed inside the present stock exchange such because the BSE and/or National Stock Exchange (NSE). This would assist the SSE leverage the present infrastructure and consumer relationships of the exchanges to onboard buyers, donors, and social enterprises (for revenue and non-profit), as per the report.
This story has been revealed from a wire company feed with out modifications to the textual content. Only the headline has been modified.
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