SEBI Proposes Online Bidding Platform for Fundraising on Social Stock Exchanges

Mumbai, July 3, 2025 — The Securities and Exchange Board of India (SEBI) is planning to introduce an online bidding platform to enable Not-for-Profit Organizations (NPOs) to raise funds more efficiently on Social Stock Exchanges (SSE).

In a consultation paper released on Thursday, SEBI outlined a proposal to establish a dedicated Social Stock Exchange Electronic Book Provider (SSE-EBP). The platform would serve as a digital interface for issuing Zero Coupon Zero Principal (ZCZP) instruments and other approved securities by NPOs.

According to the draft, any single issue of ₹50 lakh or more, or a shelf issue comprising multiple tranches of ₹50 lakh or more each (with a shelf validity of one year), would be eligible for fundraising via the platform. The move is aimed at streamlining the end-to-end fundraising process, enhancing transparency, and ensuring wider participation by investors.

The SSE-EBP platform would be responsible for providing real-time access to draft fundraising documents (DFRDs), term sheets, and related disclosures to eligible participants. It must also notify users promptly upon document submission by issuers and maintain robust data security, disaster recovery systems, and real-time updates on issuance status.

SEBI emphasized that the proposed platform will ensure secrecy, safety, and retrievability of fundraising data while boosting investor confidence in the social finance ecosystem.

This move is part of SEBI’s broader push to deepen capital access for impact-driven organizations, allowing NPOs to tap into market-linked funding mechanisms with better regulatory oversight.

The consultation paper is open for public comments, and further guidelines will be issued following stakeholder feedback.