NSE to set up Social Stock Exchange (SSE) as a separate segment

 

• Finance Minister Nirmala Sitharaman proposed the creation of a social stock exchange in her Union Budget speech for 2019-20

National Stock Exchange of India (NSE) received in-principle approval from the market regulator Securities Exchange Board of India (SEBI) on December 19, 2022, to set up Social Stock Exchange (SSE) as a separate segment of NSE.

Finance Minister Nirmala Sitharaman, in her Union Budget speech for 2019-20, proposed to create a social stock exchange under the regulatory purview of SEBI to list social enterprises and voluntary organizations working for the attainment of social welfare objective , so that they can raise capital in the form of equity, debt or units like mutual funds (MFs).

The exchange said that the government has declared a new security “Zero Coupon Zero Principal (ZCZP)” under the Securities Contracts (Regulation) Act, 1956 through Gazette notification. (NPO) to be registered with the Social Stock Exchange segment of NSE for raising funds subject to fulfillment of eligibility criteria. At present, the regulations have prescribed a minimum issue size of ₹1 crore and a minimum application size of ₹2 lakh for subscription. ZCZP will be like an altruistic donation," it added.

“NSE has always played an important role in capital formation for the country. We are working towards the launch of Social Stock Exchange as a segment on NSE. We are confident that this platform will immensely benefit social enterprises contributing to the Sustainable Development Goals," said Ashish Kumar Chauhan, MD & CEO, NSE.

In October, stock exchange BSE received in-principle approval from capital markets regulator SEBI for a social stock exchange as a separate segment.