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Explain the concept of Social Stock Exchange and its implications on the civil society. Assess the factors to be taken into consideration to make this novel concept a success in India.

Topic: Development processes and the development industry —the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.

4. Explain the concept of Social Stock Exchange and its implications on the civil society. Assess the factors to be taken into consideration to make this novel concept a success in India. (250 words)

Difficulty level: Moderate

Reference: Live Mint

Why the question:

The Securities and Exchange Board of India (Sebi) constituted a 15-member working group on a social stock exchange (SSE)

Key Demand of the question:

To explain Social Stock Exchange, its working and factors that will make it a success in India.

Directive word: 

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the context. You must be defining key terms wherever appropriate and substantiate with relevant associated facts.

Structure of the answer:

Introduction: 

Begin by defining the social stock exchange (SSE).

Body:

Explain the concept of SSE, how it works and the potential benefits its offers to the Indian civil society.

Next, write about the considerations While designing India’s social stock exchange. Factors such as – ensuring independent leadership, ensuring scale, building investor and donor appetite, and developing a viable business model etc. Give examples of model SSE from across the world.

Conclusion:

Conclude with notion how SSE holds the promise of becoming a transformative agent for civil society.