Partner GameChanger Law Advisors
Recent reports and research papers have suggested that the Indian social impact sector is rapidly maturing, with many social impact investments having surpassed expected returns. In the last few years, we have witnessed the government take a more proactive role in formulating new regulations to govern this sector, ranging from amending the law on CSR to the most recent announcement by the Finance Minister mooting a social stock exchange in India. But the question remains – is the law going to serve as an enabler or will it create challenges for the social impact sector as we head into the 2020s?
A recurring concern expressed by different market participants in the social impact ecosystem is the lack of regulatory creativity in expanding access to capital and capital markets. Hence, this session will focus on 3 contemporary issues that can impact the way in which all stakeholders can tackle the capital access concerns i.e. (1) social/development impact bonds; (2) examining the feasibility of a social stock exchange in India and (3) standardizing monitoring and measurement of “social impact” as a way of assuring all concerned stakeholders. At the end of this session, we hope to have a regulatory wish list.
- Is there an appetite for more issuances of development impact bonds? Should there be more governmental incentives for SIB/DIB issuances?
- Can there really be a marriage of “social” and “capital” to have a viable stock exchange for social impact entities looking for funding. What has been the regulatory experience elsewhere?
- Is there a need to standardize Monitoring and Impact measurement it through regulation? Will statutorily mandated certifications, or adopting global standards of measurements provide effective signals to impact investors in India?