Capital Markets: Challenges and Developments

SEBI approval to launch Social Stock Exchange


From UPSC perspective, the following things are important :

Prelims level : Social Stock Exchange (SSE)

Mains level : Not Much

The National Stock Exchange (NSE) has received final approval from the Securities and Exchange Board of India (SEBI) to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.

What is a Social Stock Exchange?

  • Social Stock Exchange (SSE) is a platform that connects social enterprises with investors who are looking for social impact along with financial returns.
  • Social enterprises are organizations that prioritize social impact over profits.
  • SSE aims to provide these organizations with access to capital markets and raise awareness about social investment opportunities.

Who can get listed for SSEs?

  • Any social enterprise, Non-Profit Organisation (NOPs) or For-Profit Social Enterprises (FPEs), that establishes its primacy of social intent can get registered or listed on the Social Stock Exchange segment.
  • Eligible NPOs can begin by registering on the SSE segment.
  • After onboarding, NPOs can initiate the fund mobilization process by issuing instruments such as Zero Coupon Zero Principal (ZCZP) via a public issue or private placement.
  • Currently, the regulations have prescribed a minimum issue size of Rs 1 crore and a minimum application size for the subscription of Rs 2 lakhs for ZCZP issuance.

How will SSE work?

  • The SSE will be a separate segment on the NSE, where social enterprises can list their securities.
  • These securities will be available for trading to investors who are interested in social impact investing.
  • The SSE will also provide a range of services such as capacity building, impact measurement, and reporting to help social enterprises improve their operations and measure their social impact.

Benefits of SSE

  • For social enterprises, SSE will provide access to capital markets and help them raise funds for their social projects.
  • For investors, SSE will provide a platform to invest in social enterprises and contribute to social impact.
  • SSE will also create a transparent marketplace where investors can assess the social impact of their investments.



Attempt UPSC 2024 Smash Scholarship Test | FLAT* 100% OFF on UPSC Foundation & Mentorship programs

Get your Rs 10,000 worth of UPSC Strategic Package for FREE | PDFs, Zoom session, Tests, & Mentorship

Notify of
Inline Feedbacks
View all comments


Join us across Social Media platforms.