New Delhi: Markets regulator Securities and Exchange Board of India (Sebi) on Thursday rolled out with a new framework for the governing council of social stock exchange, which will have an oversight on the functioning of the stock exchange.
The governing council is expected to provide guidance to facilitate the smooth functioning of the operations of the Social Stock Exchange with regard to registration, fundraising and disclosures by social enterprises, the regulator said in a circular.
The stock exchange will have to constitute a governing council for the social stock exchange prior to seeking final approval from the market regulator for the introduction of such a stock exchange as a separate segment.
With regard to the composition of the council, the regulator said it would comprise individuals with relevant expertise who can contribute to the development of Social Stock Exchange. It will have a balanced representation, drawing from various categories of stakeholders such as philanthropic, non-profit organizations, information repositories, social impact investors, social audit profession, capacity building fund and stock exchange.
The governing council will have a minimum of seven members having representation from each of these categories and would be supported by administrative staff from the Social Stock Exchange.
Last month, Sebi came out with a comprehensive framework for social stock exchange, specifying minimum requirements for a Not-for-Profit Organisation for registering with the stock exchange and disclosure requirements.
This came afterr the capital markets regulator put out rules for the social stock exchange in July. This gave social enterprises another way to raise funds.
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