Government gives nod to Social stock exchange for NGO’s
Non Government Organizations working in the social sector (NGOs) can now easily mobilize funds. In the general budget, Finance Minister Nirmala Sitaraman has announced to create a social stock exchange. This means that now like a private company, NGOs will also be able to raise funds by listing themselves in the stock market. Such stock exchanges are already established in UK, Canada, Singapore, South Africa, Brazil and Jamaica.
What did the finance minister say
While presenting the budget, Finance Minister Nirmala Sitharaman said, “To list social entrepreneurs and voluntary organizations working to achieve the objectives of social welfare, the electronic fund raising platform under the Securities and Exchange Board of India (SEBI). There is a proposal to take steps to create a social stock exchange, through which these organizations can invest in equity loans or mutual funds. They are raising funds as a unit. “
Simultaneously, the budget has announced to make its KYC norms more favorable to the investors for foreign portfolio investors. At the same time, SEBI will consider increasing the minimum government shareholding from 25 per cent to 35 per cent in listed companies.
What did retail investors get?
Apart from this, investment in treasury bills and securities issued by the government to retail investors in the budget is considered important. For this, synergy between RBI Depositories and SEBI Depositories is also important. Due to this, transfer of treasury bills and government securities between RBI and Depository will be possible. However, Nirmala Sitharaman also told that after consideration with the RBI and SEBI, the government will take necessary steps.
