It has proposed a reduction in the minimum investment requirement for Zero Coupon Zero Principal (ZCZP) bonds from Rs 10,000 to either Rs 5,000 or Rs 1,000. This change would enable investors to contribute to non-profit organizations (NPOs) that are listed on the social stock exchange (SSE) through ZCZP bonds.
In a consultation paper published on Friday, Sebi indicated, “After discussions during the special outreach session and acknowledging that the implementation of the UPI mechanism for applications will enhance the accessibility of the SSE platform, the SSE Advisory Committee (SSEAC) has recommended that the minimum application size for ZCZP issuance be lowered to Rs 5,000 or a smaller amount to encourage increased retail participation in ZCZP issuances by NPOs on the SSE.”
The regulator also highlighted that there is a pipeline of ZCZP issuances that exceeds Rs 5 crore.