SEBI Halves Minimum Issue Size on SSE to Rs 50 Lakh: Boosting NPO Fundraising

The Securities and Exchange Board of India (SEBI) has made a significant move to bolster fundraising by Not for Profit Organizations (NPOs) on the Social Stock Exchange (SSE) by reducing the minimum issue size. This decision, aimed at encouraging greater participation and support for NPOs, represents a major shift in the regulatory framework of the SSE.

Key Changes and Their Implications

  1. Reduction in Minimum Issue Size:
    • SEBI has announced a 50% reduction in the minimum issue size for NPOs fundraising on the SSE, bringing it down from Rs 1 crore to Rs 50 lakh. This applies to the public issuance of Zero Coupon Zero Principal Instruments (ZCZP)​​​​​​​​.
  2. Minimum Application Size Reduction:
    • Along with the issue size, SEBI has also lowered the minimum application size from Rs 2 lakh to Rs 10,000. This move is expected to make it easier for smaller investors to participate in fundraising efforts by NPOs on the SSE​​.
  3. Rationale Behind the Decision:
    • The reduction in the minimum issue size is a response to the nascent stage of the SSEs and the current lack of awareness around them. By making these changes, SEBI aims to provide more flexibility for fundraising by NPOs and to encourage broader participation in the SSE​​.
  4. Current Status of SSE:
    • As of August 23, 2023, both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) have established the SSE segment. There are 31 NPOs registered in this segment with the two exchanges​​.

Potential Impact

  1. Increased Accessibility for NPOs:
    • The reduced minimum issue and application sizes are expected to lower the barriers to entry for NPOs seeking to raise funds through the SSE. This can lead to a wider range of NPOs being able to access capital markets for their funding needs.
  2. Broader Investor Participation:
    • By lowering the minimum application size, SEBI opens up opportunities for smaller investors to contribute to social causes via the SSE. This could lead to increased retail investor participation in social impact investing.
  3. Enhanced Visibility for Social Causes:
    • The SSE serves as a platform for NPOs to gain visibility and credibility, and the new regulations could lead to greater exposure and support for social causes.
  4. Support for SSE Growth:
    • These regulatory changes are expected to support the growth and development of the SSE, making it a more viable and attractive platform for social impact investing.


SEBI’s decision to reduce the minimum issue size on the Social Stock Exchange marks a strategic effort to enhance the fundraising capabilities of NPOs and to promote social impact investing in India. By making it easier for NPOs to access capital and for investors to participate in social causes, SEBI is fostering a more inclusive and supportive environment for social impact initiatives. This move reflects SEBI’s commitment to developing a robust ecosystem for social entrepreneurship and impact investing in the country.



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