These organisation would be allowed to 'list" in the same way the private firms list themselves on a stock market.
Presenting her maiden budget in Parliament, Sitharaman said, "It is time to take capital markets closer to the market and meet various social welfare objectives related to inclusive growth and financial inclusion."
"I propose to initiate steps towards creating an electronic fund-raising platform, a social stock exchange, under SEBI for listing social enterprises and volunteer organisations," she said.
The minister said that the exchange would help organisations to raise capital through equity, debt or a unit of mutual fund. Social stock exchanges make it easier for investors interesting in social entrepreneurship to find organisation to put money into, with a level of regulation about what the investment goes towards.
They already exist in countries like United Kingdom, Canada, Singapore, South Africa, Brazil, Jamaica and Kenya.
However, this announcement comes at a time when the Centre has been criticised for putting roadblocks on the path of socially inclined non-governmental organisations.
