Funding
SSE Funding: How NGOs Raise Money on the Social Stock Exchange
SSE funding is how registered not-for-profits raise 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.
What is SSE funding?
On the Social Stock Exchange, an eligible NPO does not borrow or sell equity. It issues a Zero Coupon Zero Principal instrument for a specific project. Funders subscribe, the money is applied to the project, and the organisation reports the social outcomes through the exchange. It is grant funding delivered through a transparent, regulated mechanism rather than a private donation.
ZCZP: the main instrument
A ZCZP instrument pays no interest and returns no principal, so subscribing is effectively a structured donation. The NPO defines the project and the amount it wants to raise, the issue is listed on the SSE, and the funds are used and reported against that project. Our raising funds on the SSE page covers the process in more detail.
Can CSR funds be routed through the SSE?
Yes. 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 complete the project within three financial years and return any unspent amount to a Schedule VII fund. See CSR guidelines for how this works.
Who can raise funds on the SSE?
Only NPOs registered on the SSE can issue ZCZP instruments. Registration requires meeting SEBI's criteria: 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.
How to start
The path to raising funds runs through registration first, then preparing a fundable project and a ZCZP issue. If you want help working out whether your organisation is ready and what a ZCZP issue would involve, you can get in touch.
Frequently asked questions
How do NGOs raise funds on the Social Stock Exchange?+
A not-for-profit registered on the SSE raises grant funding by issuing Zero Coupon Zero Principal (ZCZP) instruments for a defined project. Donors and funders subscribe, the funds are used for the project, and the NPO reports on the outcomes through the exchange.
What is a ZCZP instrument?+
A Zero Coupon Zero Principal (ZCZP) instrument is a security issued by a registered NPO on the SSE that pays no interest (zero coupon) and returns no principal (zero principal). Subscribing is effectively a structured donation, used to fund a specific social project.
Can CSR funds be routed through the SSE?+
Yes. From 27 May 2026, the MCA 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 complete the project within three financial years.
Who is eligible to raise funds on the SSE?+
Only NPOs registered on the SSE can raise funds through ZCZP. Registration in turn requires meeting SEBI’s eligibility criteria (entity type, a 3-year track record, valid 12A/12AB and 80G, minimum spend and funding thresholds, and the primacy-of-social-intent test under Reg 292E).
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.