Every month, we make an investment from our earned salary in SIP, fixed deposit, gold, or equities, medical insurance and other national pension schemes to secure our future. Would you set aside Rs 100 or Rs 200 a month if that money could help educate a child, skill a young job seeker, support a rural entrepreneur, or improve healthcare for underserved communities? Most of us, at one time or another, have felt the urge to support someone in our lives, perhaps a domestic worker trying to fund her children's education, a security guard putting in long hours to provide for his family, or a promising student who just needs a fair shot. But between EMIs, household bills, and other financial obligations, we always think that real impact requires a large financial outlay. Yet what if modest, affordable contributions, directed through trustworthy and transparent platforms, could add up to create meaningful, lasting social change? As we know, over the past few years India has seen an unprecedented rise in retail investing. Millions of first-time investors are seen getting quite comfortable with digital investing and long-term wealth creation. In order to create measurable social impact through transparent regulated platforms, now Indians can easily invest in the Social Stock Exchange (SSE).<h2>What is Social Stock Exchange (SSE)?</h2>It is an electronic fund-raising platform that brings together social enterprises and donors towards the realisation of a social welfare objective through accessible, transparent opportunities for underserved communities, fostering economic empowerment and growth through seamless integration with NSE and BSE." Unlike traditional donations, the Social Stock Exchange (SSE) brings governance, disclosure, accountability, and impact to eligible non-profit organisations. It allows citizens to support authenticated organisations covering sectors like education, employability, healthcare, women empowerment, rural livelihoods, and climate resilience.<h2>How is SSE redefining retail investors?</h2>Ramesh Daswani, CEO, Light of Life Trust, stated that Social Stock Exchange (SSE) gives an opportunity to invest not only in organisations, but also in solutions. Citizens can also participate in a transparent and accountable ecosystem while supporting critical areas, providing purposeful participation. "Traditionally, we have measured the success of an investment by the financial returns it generates. The Social Stock Exchange challenges us to think differently. It gives citizens the opportunity to invest not only in organisations, but in solutions—and, ultimately, in the future of India. For the first time, ordinary citizens, retail investors, philanthropists and institutions can participate in a transparent and accountable ecosystem supporting critical areas such as education, healthcare, skilling and livelihoods. This is a significant shift from passive giving to purposeful participation," Ramesh Daswani said. "The Social Stock Exchange has the potential to transform the way India approaches philanthropy and social development. It can bring together capital, accountability and compassion, enabling citizens to become active nation-builders and partners in solving some of the country’s most pressing challenges. The true success of the Social Stock Exchange will not be measured merely by the funds raised or the number of investments made. It will be measured by the children who return to school, the young people who gain skills and livelihoods, the families whose lives are improved, and the communities that are transformed. In the world of conventional investments, success is measured in returns. On the Social Stock Exchange, the ultimate return is a life transformed," Ramesh Daswani added.&nbsp;Also read: <a href="https://www.wionews.com/world/why-did-india-turn-down-the-us-offer-for-f-35-fighter-jets-explained-1785757348908">Why did India turn down the US offer for F-35 fighter jets? EXPLAINED</a> Highlighting India's strong culture of investing, Dr Ketan Deshpande, Founder &amp; Chairman of FUEL (Friends Union for Energising Lives), said, "India has built a strong culture of investing, with over 23 crore demat accounts reflecting the growing confidence of retail investors in the country's financial markets. At the same time, Indian companies have invested over Rs 34,900 crore in CSR in FY 2023–24, demonstrating the country's commitment to social development. The next step is to connect these two ecosystems." Deshpande added that the Social Stock Exchange offers a transparent and trustworthy way for retail investors to assist verified non-profit organisations working across education, healthcare, skilling, livelihoods, and other critical sectors. Even if just a small share of India's retail investors get involved, it could free up substantial funding for the social sector. In effect, the Social Stock Exchange could turn ordinary citizens from return-seeking investors into active contributors to nation-building. Anuja Kishore, Chief Strategy and Transformation Officer of Lighthouse Communities Foundation, highlighted that India is a diverse country with complex social challenges; however, it is also marked as one of the world's most compassionate societies, having a longer tradition of giving. He added that currently, with nearly 22 crore demat accounts, there is an unprecedented opportunity to democratise philanthropy by allowing millions of citizens to participate in creating measurable social impact. "Investors must know that no problem can be solved by a single institution, whether it's government, a private company or an NGO, and the fact that giving is an important civic responsibility. The SSE enables retail investors to collectively contribute to large-scale social missions that would otherwise be beyond the capacity of any one individual to fund. For example, interventions such as building youth aspirations, strengthening city-wide livelihood ecosystems or creating pathways to employment often require investments running into lakhs and crores. Through SSE, like-minded citizens can pool their contributions on a transparency-and-regulation-first platform, and enable credible, mission-driven organisations and programs. This is driven by their choice, and citizens become active participants in nation building," she said. "Additionally, over time, SSE has the potential to strengthen trust in the social sector, promote evidence-based giving, and generate value for both investors and NGOs. To realise this vision, however, we must build awareness about the SSE platform and the significance of social return on investment, beyond the narrative of donations to causes," Kishore added.<h2>Make citizens nation builders</h2>Nixon Joseph, Group Executive Director, DEVI Sansthan, underscored that SSE has the potential to do something equally transformative, democratising social impact. This helps ordinary citizens to become nation builders by supporting credible, transparent, and accountable non-profit organisations working in education, healthcare, skilling, livelihoods, and other critical development areas. "India has successfully democratized wealth creation by bringing millions of retail investors into the capital markets. The Social Stock Exchange (SSE) has the potential to do something equally transformative; it can democratise social impact. Every investment becomes an opportunity to create measurable social change alongside financial participation in nation-building," Joseph said. "The SSE bridges the trust gap by ensuring regulatory oversight, transparency, and impact reporting. It empowers citizens to move beyond charity and become informed contributors to India’s development journey. If India’s growth story is to be truly inclusive, the Social Stock Exchange can enable every retail investor to participate not just in building wealth, but in building the nation itself," she added.

The SSE brings governance, disclosure, accountability, and impact to eligible non-profit organisations. It allows citizens to support authenticated organisations covering sectors like education, employability, healthcare, women's empowerment, rural livelihoods, and climate resilience.

Every month, we make an investment from our earned salary in SIP, fixed deposit, gold, or equities, medical insurance and other national pension schemes to secure our future. Would you set aside Rs 100 or Rs 200 a month if that money could help educate a child, skill a young job seeker, support a rural entrepreneur, or improve healthcare for underserved communities? Most of us, at one time or another, have felt the urge to support someone in our lives, perhaps a domestic worker trying to fund her children's education, a security guard putting in long hours to provide for his family, or a promising student who just needs a fair shot. But between EMIs, household bills, and other financial obligations, we always think that real impact requires a large financial outlay. Yet what if modest, affordable contributions, directed through trustworthy and transparent platforms, could add up to create meaningful, lasting social change? As we know, over the past few years India has seen an unprecedented rise in retail investing. Millions of first-time investors are seen getting quite comfortable with digital investing and long-term wealth creation. In order to create measurable social impact through transparent regulated platforms, now Indians can easily invest in the Social Stock Exchange (SSE). What is Social Stock Exchange (SSE)? It is an electronic fund-raising platform that brings together social enterprises and donors towards the realisation of a social welfare objective through accessible, transparent opportunities for underserved communities, fostering economic empowerment and growth through seamless integration with NSE and BSE." Unlike traditional donations, the Social Stock Exchange (SSE) brings governance, disclosure, accountability, and impact to eligible non-profit organisations. It allows citizens to support authenticated organisations covering sectors like education, employability, healthcare, women empowerment, rural livelihoods, and climate resilience. How is SSE redefining retail investors? Ramesh Daswani, CEO, Light of Life Trust, stated that Social Stock Exchange (SSE) gives an opportunity to invest not only in organisations, but also in solutions. Citizens can also participate in a transparent and accountable ecosystem while supporting critical areas, providing purposeful participation. "Traditionally, we have measured the success of an investment by the financial returns it generates. The Social Stock Exchange challenges us to think differently. It gives citizens the opportunity to invest not only in organisations, but in solutions—and, ultimately, in the future of India. For the first time, ordinary citizens, retail investors, philanthropists and institutions can participate in a transparent and accountable ecosystem supporting critical areas such as education, healthcare, skilling and livelihoods. This is a significant shift from passive giving to purposeful participation," Ramesh Daswani said. "The Social Stock Exchange has the potential to transform the way India approaches philanthropy and social development. It can bring together capital, accountability and compassion, enabling citizens to become active nation-builders and partners in solving some of the country’s most pressing challenges. The true success of the Social Stock Exchange will not be measured merely by the funds raised or the number of investments made. It will be measured by the children who return to school, the young people who gain skills and livelihoods, the families whose lives are improved, and the communities that are transformed. In the world of conventional investments, success is measured in returns. On the Social Stock Exchange, the ultimate return is a life transformed," Ramesh Daswani added. Also read: Why did India turn down the US offer for F-35 fighter jets? EXPLAINED Highlighting India's strong culture of investing, Dr Ketan Deshpande, Founder & Chairman of FUEL (Friends Union for Energising Lives), said, "India has built a strong culture of investing, with over 23 crore demat accounts reflecting the growing confidence of retail investors in the country's financial markets. At the same time, Indian companies have invested over Rs 34,900 crore in CSR in FY 2023–24, demonstrating the country's commitment to social development. The next step is to connect these two ecosystems." Deshpande added that the Social Stock Exchange offers a transparent and trustworthy way for retail investors to assist verified non-profit organisations working across education, healthcare, skilling, livelihoods, and other critical sectors. Even if just a small share of India's retail investors get involved, it could free up substantial funding for the social sector. In effect, the Social Stock Exchange could turn ordinary citizens from return-seeking investors into active contributors to nation-building. Anuja Kishore, Chief Strategy and Transformation Officer of Lighthouse Communities Foundation, highlighted that India is a diverse country with complex social challenges; however, it is also marked as one of the world's most compassionate societies, having a longer tradition of giving. He added that currently, with nearly 22 crore demat accounts, there is an unprecedented opportunity to democratise philanthropy by allowing millions of citizens to participate in creating measurable social impact. "Investors must know that no problem can be solved by a single institution, whether it's government, a private company or an NGO, and the fact that giving is an important civic responsibility. The SSE enables retail investors to collectively contribute to large-scale social missions that would otherwise be beyond the capacity of any one individual to fund. For example, interventions such as building youth aspirations, strengthening city-wide livelihood ecosystems or creating pathways to employment often require investments running into lakhs and crores. Through SSE, like-minded citizens can pool their contributions on a transparency-and-regulation-first platform, and enable credible, mission-driven organisations and programs. This is driven by their choice, and citizens become active participants in nation building," she said. "Additionally, over time, SSE has the potential to strengthen trust in the social sector, promote evidence-based giving, and generate value for both investors and NGOs. To realise this vision, however, we must build awareness about the SSE platform and the significance of social return on investment, beyond the narrative of donations to causes," Kishore added. Make citizens nation builders Nixon Joseph, Group Executive Director, DEVI Sansthan, underscored that SSE has the potential to do something equally transformative, democratising social impact. This helps ordinary citizens to become nation builders by supporting credible, transparent, and accountable non-profit organisations working in education, healthcare, skilling, livelihoods, and other critical development areas. "India has successfully democratized wealth creation by bringing millions of retail investors into the capital markets. The Social Stock Exchange (SSE) has the potential to do something equally transformative; it can democratise social impact. Every investment becomes an opportunity to create measurable social change alongside financial participation in nation-building," Joseph said. "The SSE bridges the trust gap by ensuring regulatory oversight, transparency, and impact reporting. It empowers citizens to move beyond charity and become informed contributors to India’s development journey. If India’s growth story is to be truly inclusive, the Social Stock Exchange can enable every retail investor to participate not just in building wealth, but in building the nation itself," she added.

The SSE brings governance, disclosure, accountability, and impact to eligible non-profit organisations. It allows citizens to support authenticated organisations covering sectors like education, employability, healthcare, women's empowerment, rural livelihoods, and climate resilience.

Beyond returns: Can Social Stock Exchange (SSE) turn retail investors into nation builders?

According to a recent study by the Securities and Exchange Board of India (SEBI), a significant portion of Initial public offering (IPO) shares are being sold off rapidly after listing. The report, which examines investor behaviour from April 2021 to December 2023, reveals that 54 per cent of the Initial public offering shares allotted to investors (excluding anchor investors) were sold within a week of listing. 

The study highlights a pronounced "disposition effect," where investors are inclined to sell assets that have gained in value, while holding onto those that have lost value. Specifically, individual investors sold 50.2 per cent of their allotted shares within a week, non-institutional investors (NIIs) offloaded 63.3 per cent, and retail investors sold 42.7 per cent. Over a year, individual investors' selling rate soared to 70 per cent by value thus underlining the need for investor education and calmness as investors.

Mutual funds, in contrast, are more likely to hold onto initial public offerings shares for a longer duration. The study found that mutual funds sold only 3.3 per cent of their allotted shares within a week, whereas banks were far quicker, selling 79.8 percent within the same period. 

The report also noted that returns significantly influence selling behaviour. When IPO returns exceeded 20 per cent within the first week, individual investors sold 67.6 per cent of their shares by value. Conversely, when returns were negative, only 23.3 per cent of shares were sold. 

How has been the allotment of initial public offerings?

It is to be noted that retail investors from Gujarat were particularly active, receiving 39.3 per cent of the allotment, followed by Maharashtra with 13.5 per cent, and Rajasthan with 10.5 per cent respectively. The surge in IPO participation aligns with the growth in demat accounts, with nearly half of the accounts used for IPO applications between April 2021 and December 2023 having been opened post-COVID. This again underlines the importance of taking calm and informed decision in the financial markets. 

SEBI’s policy changes in April 2022 have led to notable shifts in the initial public offering landscape. Adjustments to the Non-institutional investor (NII) share allotment process and Reserve Bank of India's&nbsp;new guidelines on initial public offer (IPO) financing by non-banking financial companies (NBFCs) have contributed to a reduction in oversubscription rates.

The Non-institutional investor (NII) category’s oversubscription decreased from 38 times to 17 times, and applications from large NII investors (those applying for more than Rs 1 crore) fell dramatically from 626 per IPO to just 20. Additionally, the exit rate of big-ticket NII investors within a week dropped from 70 per cent to about 25 per cent in the post-policy period.

These findings highlight&nbsp;the evolving dynamics of the initial public offering&nbsp;market and investor behavior. The SEBI study offers crucial insights into how investor strategies are shifting and highlights the impact of recent regulatory changes on market practices.

What lessons can retail investors take from this study?<o:p></o:p>

It is crucial for retail investors to take this report by SEBI seriously. Retail investors should consider reading good books on investing and try to understand the concept of compounding. Patience plays a very important role in wealth building. Compounding is that simple concept of wealth creation which forms the basis of the investment thesis of prominent investors like Warren Buffett, Charlie Munger among others.

Therefore, retail investors should consider making investments in equity markets with a&nbsp; long-term horizon post understanding the business and the risks associated with the same. The focus hence should be on understanding the underlying business before going for the initial public offering. Wealth building therefore is a consequence of making calm and sensible investment decisions with a long-term vision.

<o:p>&nbsp;</o:p>

According to a recent study by the Securities and Exchange Board of India (SEBI), a significant portion of Initial public offering (IPO) shares are being sold off rapidly after listing.

According to a recent study by the Securities and Exchange Board of India (SEBI), a significant portion of Initial public offering (IPO) shares are being sold off rapidly after listing. The report, which examines investor behaviour from April 2021 to December 2023, reveals that 54 per cent of the Initial public offering shares allotted to investors (excluding anchor investors) were sold within a week of listing. The study highlights a pronounced "disposition effect," where investors are inclined to sell assets that have gained in value, while holding onto those that have lost value. Specifically, individual investors sold 50.2 per cent of their allotted shares within a week, non-institutional investors (NIIs) offloaded 63.3 per cent, and retail investors sold 42.7 per cent. Over a year, individual investors' selling rate soared to 70 per cent by value thus underlining the need for investor education and calmness as investors. Mutual funds, in contrast, are more likely to hold onto initial public offerings shares for a longer duration. The study found that mutual funds sold only 3.3 per cent of their allotted shares within a week, whereas banks were far quicker, selling 79.8 percent within the same period. The report also noted that returns significantly influence selling behaviour. When IPO returns exceeded 20 per cent within the first week, individual investors sold 67.6 per cent of their shares by value. Conversely, when returns were negative, only 23.3 per cent of shares were sold. How has been the allotment of initial public offerings? It is to be noted that retail investors from Gujarat were particularly active, receiving 39.3 per cent of the allotment, followed by Maharashtra with 13.5 per cent, and Rajasthan with 10.5 per cent respectively. The surge in IPO participation aligns with the growth in demat accounts, with nearly half of the accounts used for IPO applications between April 2021 and December 2023 having been opened post-COVID. This again underlines the importance of taking calm and informed decision in the financial markets. SEBI’s policy changes in April 2022 have led to notable shifts in the initial public offering landscape. Adjustments to the Non-institutional investor (NII) share allotment process and Reserve Bank of India's new guidelines on initial public offer (IPO) financing by non-banking financial companies (NBFCs) have contributed to a reduction in oversubscription rates. The Non-institutional investor (NII) category’s oversubscription decreased from 38 times to 17 times, and applications from large NII investors (those applying for more than Rs 1 crore) fell dramatically from 626 per IPO to just 20. Additionally, the exit rate of big-ticket NII investors within a week dropped from 70 per cent to about 25 per cent in the post-policy period. These findings highlight the evolving dynamics of the initial public offering market and investor behavior. The SEBI study offers crucial insights into how investor strategies are shifting and highlights the impact of recent regulatory changes on market practices. What lessons can retail investors take from this study? It is crucial for retail investors to take this report by SEBI seriously. Retail investors should consider reading good books on investing and try to understand the concept of compounding. Patience plays a very important role in wealth building. Compounding is that simple concept of wealth creation which forms the basis of the investment thesis of prominent investors like Warren Buffett, Charlie Munger among others. Therefore, retail investors should consider making investments in equity markets with a long-term horizon post understanding the business and the risks associated with the same. The focus hence should be on understanding the underlying business before going for the initial public offering. Wealth building therefore is a consequence of making calm and sensible investment decisions with a long-term vision.

Investors quick to sell initial public offering shares, SEBI report reveals

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