Bolstering The Framework Of Social Stock Exchanges In India

The inaugural listing of a non-profit organisation (NPO) on the social stock exchange (SSE) has set the ball rolling for social enterprises (SE) to raise funds on the SSE. Over 30 NPOs have been registered on the SSE. The experience and learning will help to liberalise the framework and provide impetus to SEs and investors alike to foster impact investing.

Pursuant to recommendations from the Social Stock Exchange Advisory Committee constituted by SEBI and public comments, SEBI vide a circular dated 28 December 2023 (Circular) has modified the extant framework and provided flexibility on aspects related to eligibility criteria, minimum issue, and application size of zero coupon zero principal instruments (ZCZPs) and initial disclosure requirements that are to be met by NPOs issuing ZCZPs. It has also laid down the procedure to be followed by NPOs for public issuance of ZCZPs including prescribing the content to be included in the fund-raising document.