Thread by @stockgro

1/ What is a social #stock exchange? 🤔
Here’s all you need to know⤵️ -

2/ As you already know, a stock exchange is a platform where you can trade stocks of listed companies.

In India, there exist several stock exchanges.

But the two main ones are - @NSEIndia and @BSEIndia. ✅

3/ But what is a social stock exchange (SSE)?

It is a separate segment of an existing stock exchange listing all social enterprises.

This facility allows social enterprises to raise funds from the public.

4/ The mechanism of raising capital is the same as any typical listed company‼️

Two types of organizations are listed on an SSE -
🔹Not-for-profit organization
🔹For-profit social enterprise

5/ Both organizations work to create a positive social impact, a quality that terms them “social enterprises”. ✅

Although both organizations come under “social enterprises”, they differ in the methods to raise funds via SSE.

6/ 👉Methods allowed for Not-for-profit organization

🔹Zero Coupon Zero Principal Instruments
🔹Donations through Mutual Fund Schemes
🔹Development Impact Bonds (DIBs)

7/ 👉Methods allowed for For-profit organization

🔹Issue of Equity Shares (either through the main board or alternate funds)
🔹Issue of Debt Instruments

8/ You can only invest in for-profit organizations on an SSE as a retail or independent investor.

Moreover, you can only invest in equity shares issued on the main board.

All other methods are open to institutional investors and non-retail, independent investors. 💰

9/ Here’s a question - would you want to invest in a social enterprise? 🤔

Comment below 👇