Regulatory Alerts2026-04-15
Added · Updated
Registration for Not for Profit Organizations on Social Stock Exchange and Minimum Subscription for Zero Coupon Zero Principal Instruments
The Securities and Exchange Board of India (SEBI) has extended the period for Not for Profit Organizations (NPOs) to register on a Social Stock Exchange (SSE) without undertaking fund raising from two years to three years, with the third year subject to SSE approval. SEBI also reduced the minimum subscription requirement for NPOs issuing Zero Coupon Zero Principal Instruments (ZCZP) from 75% to 50%. This reduction is conditional on the Social Stock Exchange performing due diligence to ensure the partially raised funds can be meaningfully deployed in line with disclosed project objectives. Furthermore, NPOs must now detail in their fund-raising documents how they will manage under-subscription scenarios.
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