-The idea of a ‘social stock exchange’ is being explored in the UK – and in Singapore, South Africa, the USA and Europe – with the support of the Reckefeller Foundation and some family offices including Halloran Philanthropies.
- Asia’s first social stock exchange – Impact Investment Exchange Asia (IIX), which is a social enterprise is expected to be set up and operational by early next year. While details of the IIX have yet to be ironed out, the organisation behind IIX, Impact Partners will be launching an online portal by the end of the month to bring together investors with socially impactful investments.
- Both Robert Kraybill and En Lee, lead promoters of Impact Investments (IIX) have got extensive experience in the field of stock markets. Kraybill was formerly an investment banker and private equity investor with two decades of experience in the capital markets, especially in emerging markets in Asia. En Lee was a former corporate lawyer and former executive director at Goldman Sachs.
- In the words of Robert Kraybill of IIX, Social stock exchange is not meant to replace philanthropy but to supplement it. IIX has been reaching out to Stock Exchanges in India, Bangladesh, Indonesia and Thailand.
- It is also learnt that IIX are in talks with the Monetary Authority of Singapore, exchange operators and other key parties to finalise its listing. Impact Partners Director En Lee said the exchange did not target retail investors but institutions. “Insurance companies, pension funds, foundations and sovereign wealth funds are some of the potential investors we are getting in touch with now,” he noted.
- In the UK, Stagecoach Theatre Arts Schools plc, Parry People Movers, Good Energy plc, Radicle Projects, Eaga plc and Adilli are all social businesses that have chosen to ‘go public’ and be listed on a stock exchange. The surprising thing is not that these social enterprises have decided to try to raise the long-term financial they need from private capital but that only a few have taken this path so far. This situation might change with the creation of a focused capital market through the idea of a ‘social stock exchange’. Foundations in the UK alone have some 50 billion pounds worth of assets. Even if a small portion of this, if smartly invested, could make a big difference to the social business sector.
A couple of thoughts on this subject matter:
• Various Governments will find the concept of social stock exchange is one amongst the best things to be happening on the economic horizon;
• Once the stock exchange is set up, Government(s) should encourage more and more companies to go in for listing in these exchanges;
Let’s hope the above stock exchange becomes a reality soon in India!!!!
The most popular citizen journalists' reports on merinews chosen automatically on the basis of views and comments
View more jobs