Home / Business and Economy / SEBI Eases Rules for Social Stock Exchange
SEBI Eases Rules for Social Stock Exchange
16 Apr
Summary
- SEBI extends NPO registration validity on SSE to three years.
- Minimum subscription for ZCZP instruments reduced to 50% by SEBI.
- SEBI aims to boost capital flow to social enterprises via SSE.
The Securities and Exchange Board of India (SEBI) has introduced significant changes to the Social Stock Exchange (SSE) framework, easing registration and fundraising norms for not-for-profit organisations (NPOs). These adjustments are designed to encourage greater participation and facilitate capital flow towards social enterprises.
SEBI has extended the registration period for NPOs on the SSE. Previously, NPOs could register and remain without fundraising for two years, with a potential one-year extension requiring SSE approval. This duration has now been implicitly extended to three years from the date of registration, acknowledging practical challenges like approval delays.
Further, SEBI has reduced the minimum subscription threshold for Zero Coupon Zero Principal (ZCZP) instruments from 75 percent to 50 percent. This relaxation is contingent on the NPO demonstrating that the project remains viable and meaningful even with partial funding, ensuring that execution is not compromised.
These relaxations build upon SEBI's ongoing efforts to scale the SSE. In March 2026, the regulator had already reduced the minimum investment size for social impact funds to ₹1,000. Despite the established framework, participation on the SSE has remained modest, prompting these latest facilitative measures.
