SEBI gives final approval to NSE for launch of Social Stock Exchange

23 Feb 2023 , 03:09 PM

The National Stock Exchange (NSE) announced that it received final approval from market regulator Sebi to establish a Social Stock Exchange (SSE) as a separate segment on its platform. The final clearance was received on February 22, according to a statement from the National Stock Exchange (NSE).

The Social Stock Exchange segment will provide a new avenue for social enterprises to finance social initiatives, increase their visibility, and increase transparency in fund mobilization and utilization by social enterprises.

‘To foster knowledge, we’ve been organizing diverse events and providing support to social enterprises currently at different onboarding stages on the exchange,’ expressed Ashish Kumar Chauhan, MD and CEO of NSE.

He has also urged social enterprises to contact the NSE to learn more about the mechanism and benefits of registering and listing on the social stock exchange segment.

Any social enterprise, Non-Profit Organization (NPO), or For-Profit Social Enterprise (FPE) that establishes its primacy of social intent can be listed on the SSE segment, according to the rules.

Following their listing, NPOs can begin the fund-raising process by issuing instruments such as Zero Coupon Zero Principal (ZCZP) through a public issue or private placement.

Currently, the minimum issue size for ZCZP issuance is Rs1 crore, and the minimum application size for subscription is Rs2 lakh.

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