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CS Professional · CSR and Social Governance · Social Stock Exchange

Asha Seva Trust, a registered public charitable trust that works on rural health, wants to raise money through the Social Stock Exchange (SSE) segment of a recognised stock exchange. It is not a political party, trade or industry body, or religious entity. Which step must it complete before it can raise funds through the SSE?

The trust must first be registered or listed as a Social Enterprise on the SSE segment of the stock exchange. Only after this identification can it use SSE fundraising routes. Conversion into a company, a credit rating or a ₹100 crore minimum issue is not a general precondition.

  1. AGet registered or listed as a Social Enterprise on the SSE by the stock exchangeCorrect
  2. BConvert itself into a company limited by shares
  3. CObtain a credit rating of at least investment grade
  4. DRaise a minimum of ₹100 crore in its first issue

Explanation

A non-profit organisation must first be identified as a social enterprise and register with, or be listed on, the SSE segment before using its fundraising routes. It need not become a company, and no credit rating or ₹100 crore minimum is a general precondition. Hence the first option is correct.

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