.png)
SEBI's Decision to Halve Minimum Issue Size on Social Stock Exchanges Raises Questions: Is Rs 50 Lakh the New Norm?
Sebi also announced that the minimum application size for NPOs had been reduced to Rs 10,000 from Rs 2 lakh
The Securities and Exchange Board of India (SEBI) on November 25 cut the minimum issue size for non-profit organizations (NPOs) on the Social Stock Exchange (SSE) by half.
The press statement from Sebi, following the Board meeting, said that the minimum issue size in case of public issuance of zero-coupon zero principal instruments (ZCZP) by non-profit organizations (NPOs) on SSE has been reduced to Rs 50 lakh from Rs 1 crore.
It said that this has been done to provide impetus to fundraising by not-for-profit organizations on the SSE.
Sebi has also changed the nomenclature of "social auditor" to "social impact assessor" to provide comfort to the organizations and convey a positive approach to the social sector.
The market regulator had said in its consultation paper released on August 29 that the exchange was at an initial stage and NPOs might find it difficult to raise Rs 1 crore from a limited set of investors.
Sebi also announced that the minimum application size for NPOs would be reduced to Rs 10,000 from Rs 2 lakh. SEBI said lowering the minimum application size threshold would help a large number of investors who want like to subscribe to Zero Coupon Zero Principal Instruments of more NPOs. The minimum application size of Rs 2 lakh could be too large for people who donate on a regular basis.
.png)
