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India's Social Stock Exchange: A Slow Start?
25 Nov
Summary
- Social Stock Exchange funding is overwhelmingly public, not private.
- SSE adoption faces hurdles like complex processes and high compliance costs.
- Singapore's SSE offers lessons in user experience and impact tracking.
India's Social Stock Exchange (SSE), envisioned as a vital conduit for impact capital, is currently underutilized. Public spending dominates the social sector, accounting for 95% of outlays, with private giving also growing. However, the SSE struggles with complex listing processes and high compliance costs, deterring many NGOs.
International examples like Singapore's SSE highlight the importance of user-friendly platforms and robust impact measurement. India's current SSE model, largely focused on listings, lacks the intuitive digital experience and investor support seen in more successful global counterparts, risking alienation of potential participants.
To thrive, India's SSE must evolve beyond listings to build an ecosystem offering advisory support, capacity-building, and investor education. Incorporating CSR spending and introducing innovative instruments like diversified impact bonds could significantly boost liquidity and credibility, transforming the SSE into a robust marketplace for social capital.
