CSR becomes first environmental NGO to launch issue on NSE’s Social Stock Exchange

Hyderabad, May 16 (PTI) The Council for Green Revolution (CGR), a Hyderabad-based environmental NGO, has become the first environmental organisation in India to launch an issue on the National Stock Exchange (NSE)’s Social Stock Exchange (SSE).

The issue, valued at Rs 85 lakh, aims to fund the second phase of its flagship project, the Young Earth Leadership Program–Phase 2 (YELP-2).

Speaking to PTI, G Narayan Rao, CEO of the Council for Green Revolution, said their NGO is the 14th to be listed on the SSE after undergoing rigorous verification.

“This was introduced in 2019. There are about 3,300 registered NGOs in India, of which only about 100 have qualified so far to register on the SSE,” said Rao, former CMD of the Artificial Limbs Manufacturing Corporation of India, a Central Public Sector Undertaking (CPSU) under the Ministry of Social Justice and Empowerment.

Once an NGO is registered on the SSE, it must still undergo several procedures involving strict protocols before it can be listed on the NSE or Bombay Stock Exchange, Rao added.

The first organisation to list on the SSE was Bengaluru-based not-for-profit SGBS Unnati Foundation, which raised slightly less than Rs 2 crore from high net-worth individuals (HNIs) in December 2022.

According to Rao, who also served as General Manager at Bharat Dynamics Limited, a CPSU under the Ministry of Defence, CGR’s fundraising issue opened on May 7 and will close on May 27.

“It uses a unique SEBI-approved instrument called Zero Coupon Zero Principal (ZCZP) bonds. These bonds offer no interest or principal repayment, but donors can claim 80G income tax benefits,” said Rao.

Initially, unlike traditional bonds or equities, ZCZP instruments were considered pure donations.

However, Rao said that to encourage social sector spending, SEBI had recommended that the government allow tax benefits for companies investing in ZCZP bonds.

CGR plans to use the Rs 85 lakh raised to fund its flagship environmental education and action initiative, YELP-2, aimed at empowering students to lead eco-conscious change in their communities.

“Specifically, the funds will help CGR carry out the following activities across government schools: plant 16,000 saplings, establish 60 kitchen gardens and compost pits for wet waste processing, install 80 water harvesting units, set up five dry waste collection centres, conduct 30 climate education training sessions with domain experts, and reach over 45,000 student Earth leaders,” Rao said.

Noting that they had to “literally jump through hoops” to get here, Rao expressed hope that the effort would be worthwhile.

“We will definitely be more visible, not just in India, but globally. But it’s still too early to say how exactly this will translate. Only time will tell,” he added.

Founded on Earth Day in April 2010, CGR is a pioneering non-profit working to advance environmental stewardship, biodiversity conservation, and sustainable practices across India. PTI JR SSK ROH

Source: PTI