SEBI's Proposal to Slash Minimum Application Size for Boosting SSE Retail Participation

SEBI has proposed to cut the minimum application size for Zero Coupon Zero Principal instruments from Rs 10,000 to Rs 5,000 or Rs 1,000. This move aims to encourage greater retail participation in social stock exchanges for non-profit organizations. Public comments on the proposal are invited by March 14.

Securities and Exchange Board of India (SEBI) has announced a proposal to significantly reduce the minimum application size for Zero Coupon Zero Principal (ZCZP) instruments issued by non-profit organizations on the Social Stock Exchange (SSE). The proposed reduction, from the current Rs 10,000 to either Rs 5,000 or Rs 1,000, seeks to stimulate increased retail participation.

This initiative follows previous changes aimed at enhancing accessibility and investment in social enterprises. In 2023, SEBI already reduced the issue size and minimum application requirements, reflecting growing interest from retail donors. The goal is to make donating via SSE more feasible for a broader audience, facilitating greater capital movement into the non-profit sector.

The Social Stock Exchange is a unique platform designed to merge social enterprises and donors, thereby providing much-needed funds and growth potential. SEBI's consultation paper encourages public feedback on this proposal by March 14, underscoring the effort to bridge the gap between social ventures and potential funds.

(With inputs from agencies.)