What's changing on the SSE
When this story first broke, larger filings from NPOs such as Swades Foundation and Manjari Foundation, in the ₹7 to 10 crore range, were treated as the test of whether the SSE could handle scale. That test has largely been met: a growing list of NPOs across education, skilling, healthcare and livelihoods has registered and raised on the platform.
The bigger shift since then is structural. Corporate CSR money can now flow through the SSE, which changes who an NPO's subscribers might be. The early issues leaned on HNIs and retail donors; a listed NPO can now also reach companies looking to deploy CSR budgets through a regulated, reporting-based route. That adds corporate subscribers alongside HNIs and retail donors, and it means subscribers expect to review the project and its disclosures before they commit; the specific rules and limits are below. For the wider picture of funding routes on the exchange, see our SSE funding overview.
How funding works for NPOs on SSE
The path from idea to funded project is sequential: register as an NPO, prepare the project, file the offer document, issue ZCZP, then file the annual impact report. Each step has its own paperwork and timeline, so plan the whole sequence before you start.
NPOs raise on the SSE through Zero Coupon Zero Principal (ZCZP) instruments, a grant-like instrument where subscribers are treated as donors and receive no interest and no return of principal. The NPO files draft documents in the spirit of IPO-style disclosures, setting out the project, its structure, and the intended use of funds. We break the instrument down in ZCZP explained: how NGOs raise funds.
How NPOs raise funds on the SSE
At a practical level, raising on the SSE follows five steps. Only SSE-registered NPOs can issue ZCZP (Zero Coupon Zero Principal) instruments, which carry no interest and no repayment of principal; the return to subscribers is the verified social impact of the project. For the registration leg in detail, see SSE registration step-by-step.
Register as an NPO on the SSE: meet the eligibility criteria and complete registration with the exchange, since only registered NPOs can issue ZCZP instruments.
Define the project and funding requirement: scope the project, set the target beneficiaries and outcomes, and size the amount you intend to raise.
Prepare the draft fund-raising document: compile the disclosures on the project, its structure, and the intended use of funds, in line with SEBI requirements.
Structure and issue the ZCZP instrument: finalise the terms, open the subscription window, and issue the instrument to subscribers.
Report fund utilisation and impact: deploy the funds on the stated project and file the annual impact report, as required for listed NPOs under the SEBI framework.
The current parameters make an issue more accessible than at launch: the minimum issue size is ₹50 lakh, the minimum application size is ₹1,000, and the minimum subscription is 75% of the issue size; the SEBI circular dated 15 April 2026 introduced a reduced floor of 50% for qualifying issuances, subject to the SSE's due diligence before in-principle approval; it is not automatic. Brokers and the exchange platforms help with visibility during the subscription window, but discovery still rewards NPOs that arrive with a clear, well-documented project rather than a vague ask. For a step-by-step view of the fundraising process, see our raising funds on the SSE service page.
Offer documents: Better visibility on exchange platforms.
Lower ticket size: Reduced minimum to ₹1,000.
Impact reporting: Annual impact report expectation.
Compliance & accountability signals
Accountability has tightened in step with access. Listed NPOs must file annual impact reports, and disclosures sit within the SEBI Master Circular of January 2026 and the LODR framework. For an NPO, this is the part that decides repeat funding: subscribers, and corporates in particular, are reading those reports.
Those rules are now settled. By amending Schedule VII of the Companies Act, the MCA's May 2026 notification makes ZCZP subscription an eligible CSR activity, but a capped and conditional one: no more than 10% of a company's annual CSR spend, with companies exempted from running a separate impact assessment on these projects, and the funds required to be deployed within three financial years. One nuance to flag for corporates: a subscription made purely to discharge a mandatory CSR obligation generally won't also earn a separate 80G deduction, and the 80G route applies only under the old tax regime, so the tax treatment is worth confirming case by case. The full mechanics of the CSR change are covered in CSR via the SSE: the May 2026 MCA ZCZP update, and we cover the practical side in CSR Guidelines and Fund Allocation.
Sources
This article explains current SEBI and MCA positions for general information and is not legal advice; confirm the current rules and your specific eligibility before you file.
