Sebi keeps Go Airlines IPO in abeyance
New Delhi A Sebi-appointed panel on Thursday suggested a detailed framework for onboarding social enterprises and NPOs on the proposed social stock exchange (SSE). Corporate foundations, political and religious organisations, among other entities should not be allowed to be on the bourse, the panel said as it listed out 15 broad activities that will make a social enterprise (SE) eligible to be onboarded on the exchange. In its report submitted to Sebi, the panel, under the chairmanship of NABARD former chairman Harsh Kumar Bhanwala, also deliberated on aspects related to the ecosystem development, especially on social auditors. SE eligible to participate in SSE should be entities non-profit organisation (NPO) and for-profit social enterprise (FPE) – having social intent and impact as their primary goal. And, such intent is demonstrated through its focus on eligible social objectives for the underserved or less privileged populations or regions, as per the recommendations. The primacy is to be determined through application of three filters SE should be engaged in at least one of the 15 broad eligible activities; it should target underserved or less privileged population segments or regions; and SE should have at least 67 per cent of its activities qualifying as eligible activities to the target population.
The 15 broad areas of eligible activities included eradicating hunger, poverty, malnutrition and inequality; promoting health care, supporting education, employability and livelihoods; gender equality empowerment of women and supporting incubators of social enterprises. Besides corporate foundation, political or religious organisations, the committee has recommended that professional or trade associations, infrastructure and housing companies should not be permitted on the exchange.
