So what is the Social Stock Exchange? The Social Stock Exchange (SSE) is a platform regulated by the Securities and Exchange Board of India (SEBI) where eligible non-profit organisations and for-profit social enterprises can connect with funders to support social projects. It is not a separate building or a new company. It is a dedicated segment within India's existing stock exchanges, set up so that organisations working on social causes can register, build credibility, and in many cases raise funds in a regulated way.
The idea is to bring the discipline and transparency of capital markets to social-sector funding. Organisations that register make standardised disclosures, and funders get a clearer view of what an organisation does and what it reports. This explainer walks through the basics for NGOs in India.
What is the Social Stock Exchange, in simple terms?
Think of the SSE as a regulated noticeboard and fundraising channel for social-sector organisations. SEBI sets the rules on who can take part, what they must disclose, and how they can raise money. Once registered, an organisation appears on the exchange's SSE segment with a profile and standardised disclosures, which funders and the public can see.
The SSE does not give grants itself. It is the platform and the rulebook; the actual funding comes from donors, philanthropic funders, companies, and other investors who choose to support listed projects.
Who can participate in the SSE?
The framework recognises two broad kinds of participants:
Non-profit organisations (NPOs): charitable trusts, societies, and Section 8 companies that work on eligible social activities. NPOs are the most common participants on the SSE.
For-profit social enterprises: businesses whose primary purpose is a social objective, which can demonstrate that the bulk of their activity serves a target population. These entities engage with the SSE differently from NPOs.
Both must show that social intent sits at the core of what they do. Under SEBI's ICDR rules (Regulation 292E), an entity must carry out at least one enumerated eligible social activity, and at least 67% of its activities, measured as a three-year average of revenue, expenditure, or beneficiaries, must be directed to the target population. Political and religious organisations are excluded.
Where does the SSE actually exist: NSE or BSE?
The SSE is not a single, standalone exchange. It exists as a separate segment hosted by India's two main stock exchanges: the National Stock Exchange (NSE) and the BSE (formerly the Bombay Stock Exchange). Each runs its own SSE segment under the same SEBI framework.
For most NGOs the practical difference between the NSE SSE and the BSE SSE is administrative rather than conceptual: the eligibility rules, the instruments, and the disclosures come from SEBI and apply on both. An organisation registers on the segment it chooses to work with.
What is the difference between register only and register and raise?
An NPO on the SSE can take one of two paths:
Register only: the organisation registers on the SSE and makes the required disclosures, but does not raise funds through the exchange. This is often used to establish a verified, standardised public profile.
Register and raise: the organisation registers and then goes on to raise funds on the SSE, most commonly by issuing Zero Coupon Zero Principal (ZCZP) instruments for a defined project.
Registration on its own does not commit an organisation to raising money. It is possible to register, build a track record of disclosure, and decide later whether to raise funds.
How do NGOs raise funds: what is ZCZP?
The main fundraising instrument for NPOs on the SSE is the Zero Coupon Zero Principal (ZCZP) instrument. The name describes how it works: zero coupon means it pays no interest, and zero principal means the amount is not returned. In effect, a subscriber to a ZCZP instrument is making a donation; the funds are used to deliver a specified social project.
A ZCZP issue is tied to a defined project with stated objectives, a budget, and a timeline. SEBI sets requirements around the issue, including a minimum subscription level for the issue to proceed. NGOs that want to understand the mechanics in detail can read more on raising funds on the SSE.
What are the eligibility basics for an NPO?
Eligibility for NPOs is detailed, but the headline criteria are a useful starting point:
Entity type: a charitable trust, a society, or a Section 8 company.
Track record: registered and operational for at least three years.
Tax registrations: valid 12A or 12AB registration and valid 80G registration.
Spend threshold: annual spending of at least ₹50 lakh in the prior financial year.
Funding threshold: prior-year funding of at least ₹10 lakh.
Political and religious organisations are not eligible. A fuller walk-through of the registration process is available on our SSE registration page.
What does an organisation have to disclose on an ongoing basis?
Participation in the SSE is not a one-time event. Registered organisations make continuing disclosures so that funders and the public can follow how a project is progressing. A central requirement is an annual impact report, which is required for NPOs that are registered with or raising funds on the SSE, not only those that have raised money.
Where a project has been listed or has raised funds, the framework ties in an independent social-audit assessment carried out by a registered social auditor. For activities that are not listed, SEBI has been moving toward self-reporting. The disclosure requirements, the SEBI rules behind them, and recent changes are covered in our SEBI guidelines explainer.
Is the SSE right for my NGO?
The SSE suits organisations that already meet the eligibility criteria and are prepared to make regular, standardised disclosures. For some NGOs the value is in the credibility of a verified public profile; for others it is access to a regulated fundraising channel through ZCZP instruments. The first step is usually to check eligibility and decide between registering only and registering to raise funds.
Sources
This is a general, plain-English explainer of the Social Stock Exchange framework and is not legal or financial advice. The rules, thresholds, and timelines are set by SEBI and can change. Confirm the current position against SEBI's circulars and the relevant exchange's SSE rules before acting.