India's Social Stock Exchange

A Social Stock Exchange (SSE) is not a place to make money. It is a regulated platform where non-profit organisations (NPOs) can raise funds for specific social projects, and where donors get a structured view of what those projects achieve.

The main instrument is the zero coupon zero principal (ZCZP) instrument. As the name says, it pays no interest and returns no principal. It is a donation in the form of a listed security. What the donor gets in return is disclosure: the NPO must report how the money was used and what impact it had, and the impact must be checked by an independent assessor.

The idea is to bring the discipline of capital markets, such as disclosure, scrutiny and standard documents, to social sector fundraising.

Set-up

• SEBI notified the detailed SSE framework on 19 September 2022. A master circular of 19 January 2026 now brings the rules together.
• NSE and BSE run SSE segments. The first listing on NSE's SSE was SGBS Unnati Foundation in December 2023, which raised ₹1.8 crore.

Eligibility to register

An NPO can register with an SSE if it:

• Is a charitable trust, society or Section 8 company.
• Has existed for at least three years.
• Holds a valid income tax registration, such as under section 12A, 12AA, 12AB, 10(23C) or 10(46).
• Spent at least ₹50 lakh in the previous financial year and received at least ₹10 lakh of funding in that year.

For-profit social enterprises can also raise money through the SSE route, using ordinary equity or debt issues.

Mechanics of a ZCZP issue

• Minimum issue size: ₹50 lakh (cut from ₹1 crore in December 2023).
• Minimum application: ₹1,000 (it was ₹2 lakh at launch).
• Instruments are in demat form and cannot be transferred until they mature.
• The issue needs at least 75% subscription, or money is refunded. Since April 2026, the minimum can be 50% for projects the SSE has checked can still be delivered at the smaller size.
• A registered NPO can wait up to two years before raising money, extendable by one year with SSE approval.

Tax and CSR

• The Central Board of Direct Taxes confirmed in April 2024 that subscribing to ZCZPs counts as a donation eligible for deduction under section 80G, subject to its conditions.
• On 27 May 2026, the Ministry of Corporate Affairs added Rule 4A to the CSR Rules and a new item to Schedule VII. Companies may now meet up to 10% of their yearly CSR spending by subscribing to ZCZPs on an SSE. The NPO must complete the project within three financial years, and the subscribing company does not need its own impact assessment for that project.

Reporting

• NPOs must file an Annual Impact Report by 31 October each year, assessed by a Social Impact Assessor.
• Assessors work under self-regulatory organisations set up by ICAI, ICMAI and ICSI.

Size so far

NSE's offer document (red herring prospectus) of September 2026 reported that, as of 30 June 2026, its SSE had 195 registered non-profits (91 of them active), 14 listed entities with 16 projects, and about ₹44.6 crore raised from 948 donors since launch.

Checks for donors and CSR teams

1. The project's theory of change and target group.
2. Outcome metrics, not just outputs, and the baseline.
3. The NPO's past impact reports and audited accounts.
4. Who the impact assessor is and what they checked.
5. The fallback plan if the issue is only partly subscribed.