SEBI Eyes Online Bidding Platform to Boost Social Stock Exchange Fundraising

The Securities and Exchange Board of India (SEBI) is considering the launch of an online bidding platform for Social Stock Exchanges (SSEs), aiming to streamline fundraising for non-profits and social enterprises. The move comes as SEBI intensifies efforts to democratize social impact investing and enhance transparency in the sector.

 

Key Highlights:

 

Digital Fundraising: The proposed platform would enable investors—both retail and institutional—to bid online for Zero Coupon Zero Principal Instruments (ZCZPIs) and other SSE-listed offerings, mirroring the efficiency of mainstream capital markets.

 

Inclusive Investment: Recent reforms have already lowered the minimum investment in SSE instruments from ₹10,000 to just ₹1,000, opening doors for wider public participation and micro-contributions to verified social causes.

 

Transparency & Access: The online system is expected to increase transparency, simplify compliance, and provide real-time access to fundraising opportunities for social enterprises.

 

Sector Growth: The SSE framework supports fundraising for projects in education, healthcare, women’s empowerment, and sustainability, with robust standards for impact assessment and financial reporting.

 

Outlook:

If implemented, SEBI’s online bidding platform could transform how India’s social sector raises capital—making social impact investing more accessible, transparent, and scalable for a new generation of investors.

 

Sources: Impressive Times, Estabizz, 5paisa, NSE