Parsi Times is delighted to announce that Noshir H. Dadrawala – one of the community’s most dynamic personalities, Zoroastrian Scholar, a globally renowned consultant on Charity Laws, a prolific writer, and our very own, much sought-after PT columnist – has been invited as a member of the Governing Council of the Bombay Stock Exchange’s (BSE) ‘Social Stock Exchange’.
BSE’s ‘Social Stock Exchange’ (SSE) is the first of its kind in India and will soon have nationwide trading terminals permitted to register Social Enterprises and / or list the securities issued by Social Enterprises. The SSE will list only securities that raise money for ‘non-profit’ or ‘for-profit’ ‘social enterprises.’
Speaking to Parsi Times on the occasion of this prestigious appointment, as member of the Governing Council of the BSE’s ‘Social Stock Exchange’, Noshir Dadrawala said, “It is both, an honour and privilege to have been invited to serve on this Committee along with other eminent professionals. The Social Stock Exchange is not a new idea from a global perspective. However, it is India’s first SSE and designed very differently. I personally see a lot of opportunity for genuine charitable organisations, both, in terms of enhancing their credibility as also to fund-raise. To be listed on the SSE will require organisations to meet very high and stringent standards of Capacity, Compliance and Capability. It’s a great journey to look forward to in 2023!”
A Social Enterprise means either a ‘Not-for-Profit Organization’ or a ‘For Profit Social Enterprise’ that meets the eligibility criteria specified by Securities and Exchange Board of India (SEBI). ‘Not-for-profit Social Enterprise’ includes charitable trusts, charitable societies, companies licensed under section 8 of the Indian Companies Act 2013 and any other entity as may be specified by the Board.
A ‘for-profit’ or ‘not-for-profit’ entity must first be identified as a ‘Social Enterprise’ by establishing primacy of its social intent. Corporate foundations, political or religious organizations or activities, professional or trade associations, infrastructure and housing companies, except affordable housing, will not be eligible to be identified as a Social Enterprise.
Getting listed on the SSE would entail going through a vigorous due-diligence processes. Once listed, it would be an important recognition and enhance credibility of the social enterprise. Social enterprises listed on the SSE will also be subject to regular audits to measure social impact and reports shall be disclosed to stakeholders just like for-profit, listed companies, on regular stock exchanges.