The National Stock Exchange of India (NSE) received final approval from the Securities and Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.
The Social Stock Exchange segment will provide new avenues for social enterprises to finance social initiatives, offer them visibility, and increase transparency in fund mobilisation & utilisation by social enterprises. Any social enterprise, Non-Profit Organization (NPOs) or For-Profit Social Enterprises (FPEs) that establishes its primacy of social intent can be registered/listed on the Social Stock Exchange segment.
For eligible NOs, the first onboarding step starts with registering on the Social Stock Exchange segment. Post registration, NPOs can initiate the fund mobilisation by issuing instruments such as Zero Coupon Zero Principal (ZCZP) via a public issue or private placement.
The regulations have prescribed the minimum issue size as Rs 1 crore and the minimum application size for subscription at Rs 2 lakhs for ZCZP issuance.
For FPE, the process of issuing and listing of securities shall be the same as applicable for the issue and listing of securities under the extant processes of the Exchange (based on eligibility criteria for the Mainboard, SME Platform or innovators growth platform, as applicable in addition to the criteria provided to be eligible as Social Enterprises).
(1 US Dollar = 82.90 Indian Rupee)