Union Finance Minister Nirmala Sitharaman (PTI Photo/Vijay Verma)
The number of listings on NSE’s Social Stock Exchange platform rose to five on Thursday with the addition of four new members. In total, these five non-profit organizations (NPOs) have raised nearly Rs 8 crore, an amount that will be used for development projects.
In her message, Finance Minister Nirmala Sitharaman called this fund mobilization an “important milestone” in the field of financial inclusion and social welfare.
“The government is committed to supporting the platform as it will enable the democratization of investments and enable people across the country to participate in India’s growth story,” she said.
Social Stock Exchange is a new initiative to provide social enterprises with a platform to raise money through Zero Coupon Zero Principal (ZCZP) bonds.
Mukti, Transform Rural India Foundation, Swami Vivekananda Youth Movement and Ekalavya Foundation – which listed on Thursday – have raised Rs 1.7 crore, Rs 2 crore, Rs 1.55 crore and Rs 83.5 lakh respectively.
SGBS Unnati, the first to list on the stock exchange in December 2023, had raised Rs 1.8 crore.
The numbers of two other NPOs can be subscribed to, while three others are in the process of opening their numbers.
Meanwhile, Securities and Exchange Board of India (Sebi) chairman Madhabi Puri Buch said the regulator plans to allow its staff to donate to NPOs through ZCZP. Sebi employees are not allowed to buy securities. The decision may come during the Sebi board meeting scheduled for Friday.
Buch said the platform will bring inclusion, trust and transparency to NPOs.
The market regulator had last year reduced the minimum application size from Rs 2 lakh to Rs 10,000 and reduced the minimum issue size from Rs 1 crore to Rs 50 lakh.
Ashishkumar Chauhan, MD and CEO, NSE, said that with the change in minimum subscription, the newly listed NPOs saw several donors giving Rs 10,000 each. He added that the exchange is working to automate the process to enable smoother documentation.
First print: March 14, 2024 | 10:09 PM IST