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Developing a Roadmap of Social Enterprise Ecosystem as a Precursor for a viable Social Stock Exchange in India

The Hon. Finance Minister of India in her Budget Speech of July 2019 proposed a Social Stock Exchange that would allow Social Enterprises in India to raise capital in the form of equity and debt. A Social Stock Exchange can indeed be such a market to cater to the needs of innovative Social Enterprises that are working to address our most pressing development issues in various sectors such as health, education, energy, and livelihood. 

In pursuance of this vision of the Hon. Finance Minister and as commissioned by NABARD, GRAAM has undertaken this study to analyze India’s Social Enterprise ecosystem, which would be the demand-side foundation of the proposed Social Stock Exchange. This study also examines a number of models of Social Enterprises and Social Stock Exchanges (and their equivalents) from around the world to glean best practices that can inform the roadmaps for strengthening India’s Social Enterprise ecosystem and the Social Stock Exchange as an avenue of sustainable, ethical and transparent finance for India’s Social Enterprises. 


GRAAM SSE Study: Supported by NABARD, GRAAM has carried out a secondary data-based study to extensively analyze the Social Enterprise system in India, identify its gaps and challenges, and define the role of the Government in supporting Social Enterprises and suggest forms of Government support for Social Enterprises. 

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Project Snapshot:

Project Name Developing a Roadmap of Social Enterprise Ecosystem as a Precursor for a viable Social Stock Exchange in India
Project Sanction Date 12 Jun 2019
Project Period Jun 2019 to Jun 2020
Project Location Karnataka
Project Supported By
Project Team


Project objectives:

The objectives of the study are as follows:

  • To define Social Enterprises in Indian context.
  • To map existing status of the Social Enterprise system in India

                   a.who all qualify- as an investor, as an investee, as regulators/referees?

                  b. What kind of investment models exist?

  • To come out with valuation parameters/ risk assessment/rating systems/disclosure norms that can be employed for all the actors and are implementable in the Indian context.
  • To define role of Government and enabling regulatory support needed to promote social enterprise.
  • To provide a detailed roadmap for the creation of a National Level Social Stock Exchange.
  • To highlight the role of NABARD in development of Social Stock Exchange.


Project Result / Accomplishments:

  • A comprehensive report on the Social Enterprise System tracing its origins, best practices from different countries, identifying the social enterprise gap in India and challenges faced therein.
  • A detailed roadmap for the creation of a National Level Social Stock Exchange.
  • The role of NABARD in the development of a Social Stock Exchange.
  • NABARD  can play a pivotal role in constituting and running  the SSE. NABARD is very well-placed to mobilize  participation by its partner social enterprises in  the Social Stock Exchange.

Project Report

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