NSE receives final approval to launch Social Stock Exchange as separate segment
The SSE segment is designed to provide a new financing option for social enterprises to support their social initiatives
On February 22, 2023, the Securities and Exchange Board of India (SEBI) granted final approval to the National Stock Exchange of India (NSE) to establish a separate segment called the Social Stock Exchange (SSE).
The SSE segment is designed to provide a new financing option for social enterprises to support their social initiatives, increase transparency in fund mobilization and utilization and offer visibility to social enterprises.
Non-Profit Organizations (NPOs) and For-Profit Social Enterprises (FPEs) can register/list themselves on the SSE segment if they establish their social intent.
Eligible NPOs can initiate the fund mobilization process by issuing instruments like Zero Coupon Zero Principal (ZCZP) via a public issue or private placement.
The minimum issue size prescribed by the regulations is Rs. 1 crore and the minimum application size for subscription is Rs. 2 lakh for ZCZP issuance.
The process of issue and listing of securities for FPE is similar to that applicable for issue and listing of securities under the extant processes of the Exchange, based on the eligibility criteria for the Main board, SME Platform or innovators growth platform.
The MD & CEO of NSE, Shri Ashishkumar Chauhan, expressed his gratitude to SEBI for permitting NSE to launch SSE as a segment and urged social enterprises to connect with the NSE team to learn about the mechanism and benefits of registering and listing on the SSE segment.