The Securities and Exchange Board of India (Sebi) has granted approval to offer flexibility to Not for Profit Organizations (NPOs) in raising funds through the social stock exchange. Additionally, Sebi has decided to implement a regulatory framework for index providers. These decisions were part of the outcomes from the board meeting held by Sebi.
According to a released statement, the flexibility for fundraising by NPOs through the social stock exchange will involve reducing the minimum issue size for public issuance of Zero Coupon Zero Principal Instruments (ZCZP) for NPOs to Rs 50 lakh from the existing Rs 1 crore.
Among other notable decisions, Sebi will introduce a regulatory framework for index providers. This move is aimed at enhancing transparency and accountability in the governance and administration of financial benchmarks within the securities market.