The Securities and Exchange Board of India (SEBI) presented a special electronic book provider platform on Wednesday for fundraising by non-profit organizations (NPOs) via the Social Stock Exchange.
The proposed framework is intended to streamline the process for NPOs to issue zero coupon zero main instruments and other permitted effects on the SSE by introducing a common bidding and settlement platform called the SSE Electronic Book Provider (SSE-EBP), stated the regulator in a consultation paper.
Under the concept circular, NPOs that are planning to pick up £ 50 Lakh or more in one number will have to use this new platform through plank problems. The SSE-EBP is open to a wide range of participants, including qualified institutional buyers, non-institutional and retail investors.
However, foreign portfolio investors and foreign funds are not allowed to participate, Sebi said.
The supervisor also said that emennials should be obliged to submit detailed fundraising documents and term plates prior to the problem date, specifying project data, issue -size and other important conditions.
In addition, investors will be able to place bids through an anonymous pooling system on working days between 9 a.m. and 5 p.m. on the working days of the authorized stock exchanges. Allocations will be made on the basis of who comes first, the first time or pro-rata, where applicable, the regulator said in the consultancy.
The issuer must submit a draft fundraising document (DFRD) and a term leaf issuing details such as size, bidding conditions, minimum party size and method of allocation.
These details must be submitted two working days before the issue date or five working days in the case of a first issuer, it added.
To guarantee transparency and accountability, Sebi has set strict guidelines for KYC, disclosures and Escrow -based fund scheme.
Any failure by successful bidders to pay on time will lead to an exclusion of 30 days on the SSE-EBP-Platform.
Likewise, emitting people who withdraw from the problem without valid reasons cannot be excluded from access to the platform for 7 days. Exceptions include cases in which the problem is not at least 75 percent subscription or where investors are in default in the event of payments.
The regulator of the capital markets has invited public comments to the draft circular until 24 July.
The proposed mechanism is expected to improve the trust of investors and promote capital mobilization for social impact initiatives.
Published on July 4, 2025
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