Sebi considers expanding SSE to attract more non-profit organisations

Social Stock Exchange (SSE) was launched in 2023 to enable NPOs to raise funds from the public

In a move to expand the scope of the social stock exchange (SSE), the Securities and Exchange Board of India (Sebi) is considering several key changes. These include broadening the list of structures that can be recognised as non-profit organisations (NPOs), extending the validity period for registration, and revising the list of eligible activities to qualify as social enterprises.

 

The SSE allows investors to subscribe to zero-coupon, zero-principal (ZCZP) bonds issued by NPOs, thereby enabling donations for various activities undertaken by these organisations. The first listing on the SSE took place in December 2023.

 

Registered NPOs must comply with annual disclosure requirements and submit impact assessment reports to maintain transparency.

 

As of December 2024, 111 non-profit organisations had registered on the SSE segment of both exchanges. Approximately 10 NPOs have raised a total of Rs 22 crore through this platform.

 

Under the proposed changes, new eligible structures for recognition as NPOs may include trusts, charitable societies, and certain companies. Additionally, NPOs may be allowed to remain registered on the SSE for up to two years without raising funds through the platform.

 

The scope of recognised social activities may also be expanded to include welfare initiatives for disadvantaged children, women, and the elderly, as well as vocational skills training and the promotion of art, culture, and heritage.

 

Sebi has further proposed revisions to disclosure requirements, impact reporting, and target activities to enhance transparency and accountability.