Sebi Proposes New Platform for NPO Fundraising

Sebi proposes an electronic book provider platform for not-for-profit organizations to fundraise through the Social Stock Exchange. The platform aims to streamline the process by introducing a common bidding and settlement system. The framework excludes foreign investors and includes strict guidelines for transparency and accountability.

Devdiscourse News Desk | New Delhi | Updated: 03-07-2025 22:00 IST | Created: 03-07-2025 22:00 IST

Sebi Proposes New Platform for NPO Fundraising — This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.

Country:
India

The Securities and Exchange Board of India (Sebi) has introduced an innovative proposal to aid not-for-profit organizations (NPOs) in their fundraising efforts via the Social Stock Exchange (SSE). The proposed mechanism involves a specialized electronic book provider platform known as SSE-EBP.

This platform is designed to simplify the fundraising process for NPOs, enabling them to issue Zero Coupon Zero Principal instruments and other approved securities more efficiently. It also entails a common bidding and settlement framework.

While the platform will welcome institutional, non-institutional, and retail investors, foreign portfolio investors are barred from participation. Sebi aims for transparency, requiring detailed fundraising documents and facilitating an anonymous bidding system during specific working hours. The initiatives target increased investor trust and encourage capital towards social initiatives.

(With inputs from agencies.)