SSE funding is how a registered not-for-profit raises grant money on the Social Stock Exchange. The main route is the Zero Coupon Zero Principal (ZCZP) instrument, a SEBI-regulated way to fund a defined social project and report on its outcomes. Since May 2026, companies can also direct part of their CSR into ZCZP instruments.
On the SSE an eligible NPO does not borrow or sell equity. It issues a ZCZP instrument for a specific project, funders subscribe, and the organisation reports the outcomes through the exchange.
It is grant funding delivered through a transparent, regulated mechanism rather than a private donation. The NPO defines a project and an amount, the issue is listed on the SSE, and the funds are used and reported against that project.
A Zero Coupon Zero Principal (ZCZP) instrument pays no interest and returns no principal, so subscribing is effectively a structured donation. For how it compares to a direct donation and a CSR grant, see ZCZP explained.
Before you plan a raise. A ZCZP issue is built around a project, not a number. Funders are backing a defined piece of work, so a credible budget, timeline, use of funds, and reportable outcomes count for more than the figure on the cover. If the plan would not convince a careful donor on paper, a bigger issue size will not rescue it.
Fundraising runs through registration first, then a defined project and a structured ZCZP issue.
Confirm eligibility and register your NPO on the NSE or BSE SSE segment. Only registered NPOs can issue ZCZP instruments.
Set the scope, beneficiaries, budget, and timeline. The minimum issue size is ₹50 lakh, and one fundraising document covers one project.
Prepare and file the draft FRD with the required disclosures. See our guide to the Fundraising Document for what it must contain.
The draft FRD is open for public comments (around 21 days) and the exchange raises queries. After incorporating feedback you file the final FRD and receive in-principle approval, valid for 6 months.
Appoint a SEBI-registered Registrar to the Issue, arrange dematerialisation with a Depository, and open an escrow account with a collection bank.
The NPO sets the issue period within the permitted window of 3 to 10 trading days and discloses it in the FRD. Funders apply (minimum application size ₹1,000, reduced from ₹10,000 with effect from 19 March 2025) and money is held in the escrow account.
On reaching the minimum subscription, instruments are allotted and the issue lists on the SSE (around 10 trading days after close). If the minimum is not met, collected funds are refunded.
Apply the funds to the project and report utilisation and impact through the exchange, including the Annual Impact Report.
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). Confirm the current thresholds before issuing. This is a general explainer, not legal or financial advice.
Only NPOs registered on the SSE can issue ZCZP instruments. Registration requires a charitable trust, society, or Section 8 company; at least 3 years of operations; valid 12A/12AB and 80G; minimum spend and funding thresholds; and the primacy-of-social-intent test under Reg 292E.
Start with SSE registration, or check where you stand with the SSE readiness tool.
From 27 May 2026, the Ministry of Corporate Affairs added subscription to ZCZP instruments on the SSE to Schedule VII as an eligible CSR activity. A company can route up to 10% of its annual CSR this way and is exempt from a CSR impact assessment for those projects; the issuing NPO must run the project within three succeeding financial years and transfer any unspent amount to a Schedule VII fund, with a compliance report to SEBI.
Source: MCA Companies (CSR Policy) Amendment Rules, 2026 (G.S.R. 415(E)), in force 27 May 2026. This is a general explainer, not legal advice; confirm the current position before acting. For detail, see CSR funding via the SSE and the May 2026 MCA rule, and our CSR guidelines page.
Start by confirming where your NGO stands against SEBI's eligibility criteria.
This page is a general explainer, not legal or financial advice. Confirm the current SEBI and MCA rules before raising funds or routing CSR through the SSE.