The decision has now been operationalised after the Ministry of Corporate Affairs issued notifications on May 27 enabling such investments.The move is aimed at strengthening India's social impact financing ecosystem and encouraging greater use of regulated capital market platforms for funding social sector projects.NSE Chairman Injeti Srinivas welcomed the government's decision to allow CSR funds to be routed through Social Stock Exchanges.He said the framework would improve transparency, visibility and accountability of CSR spending while helping channel funds towards credible social initiatives.The exchange expressed hope that other large corporate CSR contributors would adopt a similar approach, helping scale up impact financing in the country.The Social Stock Exchange framework was introduced by Sebi to create a regulated fundraising platform for non-profit organisations and social enterprises.
The NSE Social Stock Exchange was launched in February 2023.Since inception, NSE-SSE has facilitated all Social Stock Exchange fundraising issuances in India.
According to the exchange, 16 projects, including two joint listings, have collectively mobilised more than Rs 44.5 crore across sectors such as healthcare, education, women empowerment, climate action, poverty alleviation, skilling and sustainable livelihoods.The latest announcement comes shortly after the government expanded the scope of permissible CSR activities through the SSE route, a move seen as a significant step towards deepening social impact investing in India.The regulatory change could unlock a new source of funding for non-profit organisations by connecting them with corporate CSR budgets through a transparent and market-linked mechanism.
