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CS Professional · CSR and Social Governance · Social Stock Exchange

Asha Foundation, a registered public charitable trust running rural literacy programmes, wants to raise funds through the Social Stock Exchange in India. Which statement best describes the basic purpose of the Social Stock Exchange (SSE) that Asha Foundation would be using?

The Social Stock Exchange is a separate segment within an existing recognised stock exchange that lets eligible social enterprises, including non-profit organisations, raise funds from the public and donors, with disclosures and transparency. It is not a government grant window or a dispute forum.

  1. AA separate platform within existing stock exchanges that enables social enterprises and non-profit organisations to raise funds from the publicCorrect
  2. BA government treasury window that grants money directly to trusts without any disclosure
  3. CA platform where only for-profit companies may list equity shares to pay higher dividends
  4. DA court-supervised forum for settling disputes between trusts and their donors

Explanation

The SSE is a separate segment of an existing recognised stock exchange (such as BSE or NSE) that connects social enterprises with investors and donors. It is not a grant window, a dividend platform for profit-making companies or a dispute forum. Hence the first option is correct.

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