On the SSE, your capital reaches enterprises with the systemic capacity to create and report measurable social impact, backed by mandatory disclosures and annual social audits.
| Investor type | NPO securities (e.g. ZCZP) | FPE securities | Notes |
|---|---|---|---|
| Institutional investors | Eligible | Eligible | Includes qualified institutional buyers as per SEBI ICDR Regulations, 2018. |
| Non-institutional investors | Eligible | Eligible | Investors other than retail individual investors and QIBs. |
| Retail individual investors | Not permitted | Main Board only | Retail = applies/bids for securities valued at not more than ₹2 lakh. |
| Corporates | Eligible | Eligible | Follow the normal investor registration process to extend funding support. |
| Foreign investors (FII / FPI / NRI) | Not allowed | Not allowed via SSE | Foreign funds are currently not permitted through the SSE. |
ZCZP funders receive a social return, not a financial one. Investors in NPO instruments are treated as donors, and the funds flow to the NPO as a grant.
Grassroots impact from projects with pre-defined objectives, annual impact scorecards, and independent social audit — accountability structures built into the platform.
ZCZP instruments are not subject to Securities Transaction Tax. The SSE framework also envisages Section 80G benefits, STT and capital-gains exemptions, and CSR deductibility for corporates.
Draft fund-raising documents are public for at least 21 days; registered NPOs disclose governance, financials and impact continuously — even funds raised outside the SSE.
DIBs are structured finance products available on the SSE. A grant is made to an NPO only after it delivers on pre-agreed social metrics at pre-agreed costs.
The donor who pays the grant, post-facto, when the social metrics are achieved.
Pre-finances the NPO's operations and bears the risk of non-delivery; typically earns a small return if the metrics are delivered.
NPOs are allowed to issue Development Impact Bonds on the SSE.
The SSE framework recommends that corporate funding of NPOs on the exchange count towards CSR commitments — with CSR capital able to act as outcome funder in DIB structures, contribute to the ₹100 crore Capacity Building Fund housed in NABARD, and provide accelerator grants of up to 10% of programme cost. Corporates register through the normal investor registration process.
The minimum subscription is 75% of the proposed raise. Between 75% and 100%, the fund-raising document must state how balance capital will be raised and the possible impact on the social objectives. If subscription falls below 75%, funds are refunded to applicants. Specifics are set out in the offer document, subject to extant regulations.
Trading is not permissible in ZCZP instruments, but they can be transferred for other purposes — such as transfer to legal heirs. Instruments issued by For-Profit Organisations remain tradable on the respective exchange platforms where they are listed.
Listing terminates when the object for which funds were raised is achieved (with a certificate submitted to the SSE) or when the tenure stated in the fund-raising document expires. Termination is equivalent to delisting.
Yes — private placement of ZCZP instruments can be made to persons other than Social Impact Funds registered under the SEBI AIF Regulations. Private placements issued to Social Impact Funds are compulsorily required to be listed on the SSE.
Investors in NPO fund-raising are treated as donors under normal accounting principles, and the funds raised by the NPO take the form of a grant — there is no repayment of interest or principal.
No. Foreign investors such as FIIs, FPIs, and NRI investors are currently not allowed to invest through the SSE, including in NPO fund-raising.
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