The Securities and Exchange Board of India issued a circular on 15 April 2026 to strengthen and promote the Social Stock Exchange (SSE) framework by easing fundraising conditions for Not-for-Profit Organizations (NPOs). The circular extends the permissible registration period for NPOs on the SSE without raising funds from two years to three years, subject to approval by the SSE for the additional year. It also reduces the minimum subscription requirement for issuance of Zero Coupon Zero Principal (ZCZP) instruments from 75% to 50% in cases where the Social Stock Exchange is satisfied through due diligence that the partially raised funds can still be deployed meaningfully toward the stated social objectives. 

Additionally, NPOs must disclose plans for arranging any shortfall in funding and explain the potential impact of under-subscription on project objectives, while ensuring refunds if the minimum subscription threshold is not achieved. The amendments were introduced to facilitate easier fundraising, improve participation in the SSE ecosystem, and support the viability of social impact projects.
 

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