SEBI initiatives to deepen participation in the Social Stock Exchange
SEBI has proposed targeted regulatory relaxations to deepen participation and improve fund-raising efficiency on the Social Stock Exchange (SSE).
Key proposals include reducing the minimum investment by individual investors in Social Impact Funds from Rs. 2 lakh to Rs. 1,000, extending the registration period for Not-for-Profit Organisations on the SSE without fund-raising from two to three years, and lowering the minimum subscription requirement for Zero Coupon Zero Principal Instruments from 75% to 50% for eligible per-unit projects. These measures aim to enhance accessibility, ease of doing business, and capital mobilisation for social enterprises, while placing greater emphasis on board oversight, due diligence by stock exchanges, and governance safeguards to ensure that reduced thresholds do not dilute accountability or project outcomes.
