Securities and Exchange Board of India (SEBI) extends registration validity for NPOs on Social Stock Exchange

Key facts

• The Securities and Exchange Board of India (SEBI) has extended the registration validity for not-for-profit organisations (NPOs) on the Social Stock Exchange (SSE) from two years to three years without raising funds.
• SEBI has lowered the minimum subscription requirement for Zero Coupon Zero Principal (ZCZP) instruments from 75 per cent to 50 per cent for projects where costs and outcomes can be implemented on a clearly identifiable per-unit basis.
• SSEs must conduct due diligence to ensure that funds raised at the lower 50 per cent subscription threshold can be meaningfully deployed towards stated objectives.
• Funds will be refunded to investors if the minimum subscription requirement is not met.
• In March, the SEBI board approved a reduction in the minimum investment required from individual investors in social impact funds from ₹2 lakh to ₹1,000.