India’s market regulator SEBI has proposed lowering the minimum investment in Social Impact Funds (SIFs) from ₹2 lakh to just ₹1,000. The move aims to expand retail participation, ease fundraising for not-for-profit organizations, and strengthen the Social Stock Exchange (SSE) framework, making impact investing more inclusive.
The Securities and Exchange Board of India (SEBI) has unveiled a consultation paper proposing a sharp reduction in the minimum investment limit for Social Impact Funds (SIFs). Under the plan, individual investors would be able to participate with as little as ₹1,000, compared to the current threshold of ₹2 lakh.
This initiative is designed to broaden retail participation, encourage small investors to contribute to social enterprises, and improve capital flows to not-for-profit organizations (NPOs) listed on the Social Stock Exchange (SSE).
Key Highlights
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Minimum Investment Cut: From ₹2 lakh to ₹1,000 for individual investors.
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Objective: Expand retail participation and democratize impact investing.
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Support for NPOs: Easier fundraising through SSE-listed securities.
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Regulatory Alignment: Brings SIFs in line with Zero Coupon Zero Principal Instruments (ZCZP).
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Broader Impact: Strengthens SSE framework and promotes sustainable development financing.
SEBI’s proposal marks a significant step toward making impact investing accessible to everyday investors, while simultaneously empowering NPOs to raise funds more efficiently.
Sources: The Hindu BusinessLine, Economic Times, The Tribune, SEBI consultation paper