NSE
NSE to set up Social Stock Exchange (SSE) as a separate segment
Mumbai/IBNS: The National Stock Exchange of India (NSE) has received in-principle approval from the Securities Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.
Finance Minister Nirmala Sitharaman, in her Union Budget speech of 2019-20, had proposed the creation of a Social Stock Exchange under the regulatory ambit of the Securities and Exchange Board of India (SEBI) for listing social enterprises and voluntary organizations working for the realization of a social welfare objective so that they can raise capital as equity, debt or as units like a mutual fund.
The approval was received on December 19, 2022.
The government through gazette notification has declared a new security “Zero Coupon Zero Principal (ZCZP)” under the Securities Contracts (Regulation) Act, 1956.
The new instrument ZCZP can be publicly or privately issued by Not for Profit (NPO) upon registering with the Social Stock Exchange segment of NSE to raise funds subject to fulfillment of eligibility criteria.
Currently, the regulations have prescribed the minimum issue size as Rs 1 crore and the minimum application size for subscriptions at Rs 2 lakhs. Subscription to the ZCZP would be like a philanthropic donation.
NSE MD & CEO Ashishkumar Chauhan said, “NSE has always played a pivotal role in capital formation for the country. We are working towards the launch of Social Stock Exchange as a segment on NSE. We believe this platform will immensely benefit the social enterprises contributing to the Sustainable Development Goals.”
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
