NSE to set up Social Stock Exchange (SSE) as a separate segment
National Stock Exchange of India (NSE) received in-principle approval from the Securities Exchange Board of India (SEBI) on December 19, 2022, to set up a Social Stock Exchange (SSE) as a separate segment of the NSE.
Earlier, Hon’ble Finance Minister, Smt. Nirmala Sitharaman, in her Union Budget speech of 2019-20 had proposed creation of a Social Stock Exchange, under the regulatory ambit of Securities and Exchange Board of India (SEBI) for listing social enterprises and voluntary organizations working for the realization of a social welfare objective, so that they can raise capital as equity, debt or as units like a mutual fund.
Government of India, through gazette notification has declared a new security “Zero Coupon Zero Principal (ZCZP)” under the Securities Contracts (Regulation) Act, 1956. The new instrument ZCZP can be publicly or privately issued by Not for Profit (NPO) upon registering with the Social Stock Exchange segment of NSE to raise funds subject to fulfilment of eligibility criteria. Currently the regulations have prescribed the minimum issue size as Rs 1 crore and minimum application size for subscription at Rs 2 lakhs. Subscription to the ZCZP would be like a philanthropic donation.
Shri Ashishkumar Chauhan, MD & CEO, NSE said: “NSE has always played a pivotal role in capital formation for the country. We are working towards the launch of Social Stock Exchange as a segment on NSE. We believe this platform will immensely benefit the social enterprises contributing to the Sustainable Development Goals.”
About National Stock Exchange of India Limited (NSE):
National Stock Exchange of India (NSE) is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by Futures Industry Association (FIA) for calendar year 2021. NSE is ranked 4th in the world in the cash equities by number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for calendar year 2021. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on SEBI data. NSE has a fully integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading, clearing members and listed companies with the rules and regulations of SEBI and the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology.
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