SEBI Lowers Minimum Investment for ZCZP Instruments on Social Stock Exchange to ₹1,000

The Securities and Exchange Board of India (SEBI) on Wednesday announced a reduction in the minimum investment amount for Zero Coupon Zero Principal (ZCZP) instruments on the Social Stock Exchange (SSE) from ₹10,000 to ₹1,000.

The move aims to boost retail participation in social impact investments and increase funding for non-profit organisations (NPOs).

Enhanced Access to Social Investments

ZCZP instruments allow investors to donate funds to NPOs listed on the SSE without any financial returns. By lowering the investment threshold, SEBI expects to encourage more small investors to contribute, thereby enhancing the flow of funds to social enterprises engaged in sectors such as education, healthcare, and community development.

“Based on recommendations of the Social Stock Exchange Advisory Committee and public comments received in respect of the consultation paper…it is decided to review the existing minimum application size for subscribing to Zero Coupon Zero Principal Instruments from ₹10,000 to a lower amount i.e. ₹1,000,” SEBI stated in a circular.

Amendments to Previous Guidelines

The regulator clarified that this decision modifies the provisions outlined in its earlier circular dated September 19, 2022, which was previously amended on December 28, 2023. Following this latest directive, the September 2022 circular will now reflect the revised minimum investment amount of ₹1,000 for ZCZP instruments.

Immediate Implementation of New Rules

SEBI confirmed that the new investment threshold would take effect immediately. This change is expected to democratise access to social impact investing by allowing more retail investors to contribute towards meaningful social causes through the SSE platform.

What is Social Stock Exchange (SSE)?

The Social Stock Exchange is a unique initiative in India designed to connect social enterprises with investors and donors. It was first proposed by Finance Minister Nirmala Sitharaman in the Union Budget 2019-20.

The SSE operates as a dedicated segment within existing stock exchanges, providing a structured framework for funding and growing social enterprises while ensuring transparency in impact and financial reporting.

By easing the investment requirements, SEBI’s latest move is likely to enhance participation in social finance, creating new opportunities for philanthropic capital to reach organizations driving positive change.

Conclusion

SEBI’s decision to lower the minimum investment for ZCZP instruments to ₹1,000 is set to boost retail participation in social impact investments.

By making social finance more accessible, the move is expected to channel more funds into essential sectors like education and healthcare, strengthening the Social Stock Exchange’s role in supporting non-profit organizations and driving positive social change.

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