NSE gets SEBI approval to launch Social Stock Exchange

The National Stock Exchange of India (NSE) has received final approval from the Securities and Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.

The Social Stock Exchange segment will provide a new avenue for social enterprises to finance social initiatives, provide them visibility and bring in increased transparency in fund mobilisation and utilisation by social enterprises, the NSE says in a statement.

Any social enterprise, non-profit organisation or for-profit social enterprise that establishes its primacy of social intent can get registered and listed on the Social Stock Exchange segment, India's largest bourse says.

For eligible non-profit organisations (NPOs), the first step for onboarding starts with the registration on the Social Stock Exchange segment. "Post registration, NPOs can initiate the fund mobilisation process by issuance of instruments such as Zero Coupon Zero Principal (ZCZP) via a public issue or private placement," the NSE says.

Currently the regulations have prescribed the minimum issue size as ₹1 crore and minimum application size for subscription at ₹2 lakh for Zero Coupon Zero Principal issuance.

For for-profit social enterprises (FPE), the process of issue and listing of securities shall be same as applicable for issue and listing of securities under the extant processes of the exchange.

"I take this opportunity to thank SEBI for permitting NSE to launch Social Stock Exchange as a segment. To bring in awareness, we have been conducting various events and hand holding Social Enterprises currently at various stages of onboarding on the Exchange," said Ashishkumar Chauhan, managing director and CEO, NSE.

Chauhan requested social enterprises to get in touch with NSE teams to understand the mechanism and benefits from registering and listing on the Social Stock Exchange segment.