An Insight into Social Stock Exchanges and its Regulations

The general understanding of a stock exchange is that it is a marketplace where for-profit companies propose to list their securities to raise funds and provide liquidity to the existing shareholders of the company. The concept of social stock exchanges has emerged in the recent past wherein not-forprofits(“NPOs”) or for profit-making social enterprises(“FPSEs”) are able to access funds for specific social projects. Countries like Canada, UK, Jamaica, Brazil, Portugal and South Africa have established social stock exchanges. India has taken the first step to join this group of countries.

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