Introduction:

On December 13, the SGBS Unnati Foundation became the pioneering NGO to be listed on the Social Stock Exchanges (SSE) of both BSE and NSE. This move marks a significant step in enabling NGOs to access funds and enhancing accountability through social and environmental impact reporting.

NGO Listing Details and Subscription:

• Unnati aimed to raise Rs 2 crore through its UNXT program, securing training for 10,000 graduates and aiding their employment. The issue received 90 percent subscription, amassing approximately Rs 1.8 crore.
• Despite undersubscription, Unnati considers the response satisfactory, emphasizing the importance of reaching the 75 percent subscription threshold to avoid being deemed unsuccessful.

Challenges for NGOs in SSE Listings:

• Unlike mainboard IPOs where investment bankers ensure subscription, NGOs often lack resources for full subscription. Unnati acknowledged pro-bono support from legal advisors and merchant bankers, reducing the financial burden of pre-offer formalities.

Donor Contributions and Listing Impact:

• Prominent contributors like Zerodha, NABARD, Govind Iyer, and Ashish Kacholia supported Unnati's cause. Donors contributed between Rs 20 lakh to Rs 1 crore.
• SSE listing offers wider access to donors across the nation and enhances credibility for NGOs by being associated with SEBI, NSE, and BSE.

Benefits for Donors and SEBI's Outlook:

• Presently, CSR funds' deployment and Section 80G deduction for SSE issues are not permissible. However, SEBI emphasizes outcome-based funding and accountability through social impact assessors reviewing fund usage and progress.

Conclusion:

Unnati's SSE listing represents a transformative milestone for NGOs, enabling greater funding accessibility and establishing heightened accountability measures through social and environmental impact reporting, aligning with SEBI's push for outcome-driven philanthropy.