SEBI seeks clarity from MHA on foreign participation in SSE.

The Securities and Exchange Board of India has asked the Ministry of home affairs to clarify the participation of foreign entities in the Social Stock Exchange (SSE). The regulator has questioned whether the foreign entities have the right to invest in the SSE-listed companies.

Presently the foreign entities can participate in the traditional stock markets. The concern is that the entities that are a part of SSE deal in social/voluntary work. Usually, foreign contributions for such entities fall under the ambit of Foreign Contribution Regulations (FCRR); FCRR places various checks and balances on the foreign institutions and also lays down compliance norms in receiving funds and donations from the foreign entities.