The Social Stock Exchange (SSE) is a platform introduced by SEBI (Securities and Exchange Board of India) to help NGOs and social enterprises raise funds transparently. SSE allows registered social organizations to list themselves and attract investments through Zero Coupon Zero Principal (ZCZP) Bonds, Impact Bonds, and Mutual Funds for social impact projects.
Who Can List on the Social Stock Exchange?
- Non-Profit Organizations (NPOs) – Includes Trusts, Societies, and Section 8 Companies that meet the eligibility criteria.
- For-Profit Social Enterprises (FPEs) – Companies engaged in education, healthcare, environment, rural development, women empowerment, financial inclusion, and similar activities.
Eligibility Criteria for NGOs & NPOs
- Must be registered as a Trust, Society, or Section 8 Company.
- Minimum operational history of 3 years.
- Minimum ₹50 lakh annual turnover OR ₹10 lakh in funding received in the last financial year.
- A valid 12A & 80G registration (for tax exemption & credibility).
- Must have undertaken social impact projects and can provide documented proof.
Benefits of Listing on the Social Stock Exchange
- Access to CSR & Institutional Funding – Listed NGOs can attract corporate donors and large institutional investors for long-term sustainability.
- Increased Credibility & Recognition – Listing on a government-regulated platform enhances the organization’s reputation and donor trust.
- Alternative Fundraising Options – NGOs can raise funds through ZCZP Bonds, Impact Bonds, and other innovative financial instruments rather than relying only on traditional donations.
- Transparent & Regulated Fundraising – Ensures accountability, financial transparency, and donor confidence, making fundraising easier.
- Better Donor Confidence – Listing on SSE allows donors to track fund utilization and impact assessment reports, encouraging more contributions.
- Eligibility for Foreign Donations – NGOs can attract international donors and CSR funding by ensuring compliance with FCRA & SSE norms.
- Recognition from Government & Corporate Sector – Enhances the chances of receiving government grants, CSR partnerships, and impact investments.
- Tax Benefits for Donors & Investors – Encourages higher contributions from individuals and businesses due to tax exemptions under 80G & CSR laws.
- Compliance & Accountability – NGOs must file annual reports, financial statements, and impact assessments, ensuring long-term sustainability and transparency.
