Social Stock Exchange Registration & ZCZP Advisory
Where capital meets measurable social impact. S & S Associates, Company Secretaries, help not-for-profit organisations and social enterprises register on India's Social Stock Exchange and raise mindful capital through Zero Coupon Zero Principal instruments — with full SEBI, disclosure and social-audit compliance.
In short
The Social Stock Exchange (SSE) is a SEBI-regulated segment of BSE and NSE where NPOs and for-profit social enterprises raise funds for measurable social impact. NPOs register on the SSE and issue ZCZP (Zero Coupon Zero Principal) instruments, where funders receive a social — not financial — return. S & S Associates handle eligibility, registration, the fund-raising document, disclosures and ongoing SEBI compliance end to end.
Social activities identified under the SEBI (ICDR) Regulations that establish social intent
Minimum share of activities, revenue or beneficiaries directed to the target population
Minimum subscription required for a successful ZCZP issue
Minimum years an NPO must be in existence before it can register on the SSE
A one-stop platform for credible social enterprises
Conceived in the Union Budget 2019–20 to make capital markets accessible for developmental goals, the SSE operates under the regulatory ambit of SEBI and acts as a medium between social enterprises and fund providers.
Regulated by SEBI
The SSE is a separate segment of recognised stock exchanges established under SEBI's framework, with disclosure norms through the ICDR Regulations and related circulars.
Primacy of social intent
Only entities engaged in one of the seventeen identified social activities, targeting underserved or less-privileged population segments, qualify as social enterprises.
Impact you can verify
Listed and registered entities make continuous disclosures on social impact, with annual social audits by registered social auditors ensuring standardised, credible reporting.
From social intent to verified impact
Four stages take a social enterprise from qualifying for the SSE to reporting the outcomes its funders paid for.
Social enterprise
An NPO or for-profit entity engaged in eligible social activities, targeting underserved or less-privileged population segments.
Register & disclose
Register on the SSE segment and file the required eligibility and disclosure documents, including the draft fund-raising document, for review.
Raise funds
Issue instruments such as ZCZP, mutual-fund schemes or equity to raise mindful capital from eligible investors.
Report impact
Publish continuous impact disclosures and undergo an annual social audit for verified, standardised outcomes.
Built for both non-profits and social enterprises
The path to funding — and whether SSE registration is required — depends on which kind of social enterprise you are.
Not-for-Profit Organisations
Charitable trusts, societies registered under the Societies Registration Act 1860, and Section 8 companies. After mandatory registration with the SSE, NPOs may raise funds through:
- Zero Coupon Zero Principal (ZCZP) instruments — public issue or private placement
- Donations through Mutual Fund schemes as specified by SEBI
- Development Impact Bond structures
For-Profit Social Enterprises
Companies or body corporates operating for profit (excluding Section 8 companies) that meet the social-enterprise criteria. They raise funds directly through:
- Equity shares on the Main Board, SME platform or innovators' growth platform
- Equity issued to Alternative Investment Funds, including Social Impact Funds
- Issuance of debt securities
ZCZP — a security built for giving
Zero Coupon Zero Principal instruments carry a zero-coupon rate and no principal is payable at maturity. Issued only by SSE-registered NPOs, for a specific project over the list of eligible activities and for a specified duration, they promise the funder a social return, not a financial one.
- Issued in dematerialised form only — no physical certificates
- Funds received by the NPO are treated as a grant; investors are treated as donors
- Not tradable in the secondary market, but transferable — for instance, to legal heirs
- Not subject to Securities Transaction Tax
- Terminates on meeting the project object (with certificate) or on expiry of tenure — equivalent to delisting
Our Social Stock Exchange services
As Company Secretaries, we handle the statutory and secretarial execution across the full SSE lifecycle — so your team can focus on impact.
Eligibility assessment
Testing your entity against the seventeen eligible activities and the 67% target-population thresholds before you commit.
SSE registration
Preparing and filing the registration for NPOs on the SSE segment of BSE or NSE, including all supporting documents.
Draft fund-raising document
Drafting the fund-raising document for your ZCZP issue and steering it through the review and public-comment stage.
ZCZP issuance
Structuring and executing the Zero Coupon Zero Principal issue — dematerialisation, application and subscription support.
Disclosures & impact reporting
Continuous disclosures and the Annual Impact Report, plus coordination of the annual social audit by a registered auditor.
Ongoing SEBI compliance
Continuing SEBI (LODR) and ICDR obligations, secretarial compliance and advisory for as long as you remain on the SSE.
Frequently asked questions
What is the Social Stock Exchange (SSE)?
The Social Stock Exchange is a separate segment of India's recognised stock exchanges (BSE and NSE), regulated by SEBI, that lets not-for-profit organisations and for-profit social enterprises raise funds from the public for measurable social impact. It was conceived in the Union Budget 2019–20.
What is a ZCZP (Zero Coupon Zero Principal) instrument?
A ZCZP is a security issued only by SSE-registered NPOs that carries a zero coupon rate and returns no principal at maturity. Funds received are treated as a grant and investors as donors, so the funder receives a social return rather than a financial one. It is issued in dematerialised form for a specific project and duration, and terminates on meeting the project object or on expiry of tenure.
Who is eligible to register on the SSE?
A social enterprise must be engaged in one of the seventeen social activities identified under the SEBI (ICDR) Regulations, target an underserved or less-privileged population, and direct at least 67% of its activities, revenue or beneficiaries to that population. NPOs must additionally have been in existence for at least three years. Corporate foundations, political and religious organisations, trade associations and most infrastructure or housing companies (except affordable housing) are not eligible.
What are the ZCZP minimum issue, application and subscription figures?
Under the current SEBI framework the minimum issue size for a ZCZP is ₹50,00,000, the minimum application size is ₹10,000, and an issue is treated as successful only if it achieves at least 75% subscription of the amount proposed to be raised.
Do for-profit social enterprises need to register with the SSE?
No. For-profit social enterprises do not require SSE registration. They can raise funds through equity on the Main Board, SME platform or innovators' growth platform, through equity to Alternative Investment Funds including Social Impact Funds, or by issuing debt securities — provided they meet the social-enterprise criteria.
How does S & S Associates help with the SSE?
We provide end-to-end SSE support — eligibility assessment, NPO registration on the SSE segment, drafting the fund-raising document, structuring and executing the ZCZP issue, continuous disclosures and the Annual Impact Report, social-audit coordination, and ongoing SEBI (ICDR and LODR) compliance.
Ready to raise or fund measurable social impact?
Talk to our team for a confidential, no-obligation discussion of your SSE registration or ZCZP fund-raising requirement.
Book Free ConsultationThe Social Stock Exchange is a separate segment of SEBI-recognised stock exchanges. This page is for general information only and does not constitute investment, legal or tax advice. Eligibility criteria, instrument terms and figures are governed by SEBI regulations and circulars in force from time to time and may change.