NE BUSINESS BUREAU
CHENNAI, DEC 23
The National Stock Exchange of India (NSE) on Friday announced that it had received in principle approval from the Securities Exchange Board of India (SEBI) on Monday, December 19, 2022, to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.
- The Government of India, through gazette notification has declared a new security “Zero Coupon Zero Principal (ZCZP)” under the Securities Contracts (Regulation) Act, 1956
- Currently the regulations have prescribed the minimum issue size as Rs 1 crore and minimum application size for subscription at Rs 2 lakhs.
- Subscription to the ZCZP would be like a philanthropic donation.
- We believe this platform will immensely benefit the social enterprises contributing to the Sustainable Development Goals: Ashishkumar Chauhan, MD & CEO, NSE
Earlier, Union Finance Minister Nirmala Sitharaman, in her Union Budget speech of 2019-20 had proposed 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 Government of India, 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 the Social Stock Exchange segment of NSE to raise funds subject to fulfilment of eligibility criteria. Currently the regulations have prescribed the minimum issue size as Rs 1 crore and minimum application size for subscription at Rs 2 lakhs. Subscription to the ZCZP would be like a philanthropic donation.
Ashishkumar Chauhan, MD & CEO, NSE 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.”
