The Securities and Exchange Board of India (SEBI) issued a circular on March 19, 2025, titled “Framework on Social Stock Exchange (SSE),” introducing changes to the existing framework for Social Stock Exchanges in India.
💠 Key Highlights of the Circular 💠
▪️ Reduced Minimum Application Size:
The minimum application size for subscribing to Zero Coupon Zero Principal Instruments has been lowered from Rs. 10,000 to Rs. 1,000, making it more accessible to a wider range of investors.
▪️ Immediate Effect:
The changes outlined in the circular come into effect immediately, allowing for swift implementation of the new framework.
▪️ Regulatory Basis:
The circular is issued under Section 11 and Section 11A of the Securities and Exchange Board of India Act, 1992, read with Regulation 299 of SEBI ICDR Regulations.
▪️ Objective:
The modifications aim to protect investor interests and promote the development and regulation of the securities market, particularly in the context of social enterprises.
▪️ Previous Amendments:
This circular builds upon earlier frameworks established on September 19, 2022, and amended on December 28, 2023, reflecting SEBI’s ongoing efforts to refine the Social Stock Exchange ecosystem.
▪️ Consultation Process:
The changes are based on recommendations from the Social Stock Exchange Advisory Committee and public comments received on the consultation paper, demonstrating SEBI’s commitment to stakeholder engagement.
These updates to the Social Stock Exchange framework are designed to enhance accessibility and promote greater participation in social impact investing, potentially leading to increased funding for social enterprises in India.
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