Markets regulator Sebi has extended the registration validity for not-for-profit organisations on the Social Stock Exchange, allowing their enrolment as NPOs for three years without raising funds. The minimum subscription requirement for issuing Zero Coupon Zero Principal Instruments (ZCZP) has also been lowered.
Sebi has extended the validity period to three years from the existing two years, during which NPOs can remain registered on the SSE without raising funds. The regulator noted practical challenges faced by NPOs, including delays in statutory and regulatory approvals.
NPOs may register on the SSE and not raise funds for two years from the date of registration, with a possible one-year extension subject to SSE approval. Additionally, the minimum subscription requirement for ZCZP has been reduced to 50 per cent from 75 per cent, applicable only to projects with identifiable per-unit costs and outcomes.
Sebi stated that funds would be refunded to investors if the minimum subscription requirement is not met. In March, Sebi approved a proposal to reduce the minimum investment required from individual investors in social impact funds to Rs 1,000 from Rs 2 lakh.
