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SEBI Relaxes Rules for Social Stock Exchange to Boost NGO Participation and Fundraising
SEBI has significantly relaxed rules for NPOs on the Social Stock Exchange (SSE). The minimum subscription for ZCZP instruments has been raised to 50% and registration extensions have been approved. Read the full news report here.
The capital markets regulator SEBI has introduced a number of positive developments in the area of SSE development. In its latest circular, issued on Wednesday, SEBI highlighted that NPOs will be registered for a longer period while their fundraising process would become less complicated. The aim is to attract many social organizations to take part in the market and make the process of fundraising simpler.
The regulator has increased the period for which NPOs will continue to be listed without any need to raise funds from them. While earlier, the duration was two years, it is now three years. SEBI has taken this decision considering the practical challenges faced by NPOs, such as delays in obtaining statutory and regulatory approvals.
According to the new rules, an NPO can remain registered on the exchange without raising funds for two years from the date of registration. Subsequently, this period can be extended for an additional year with the approval of the Social Stock Exchange (SSE).
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