Social Stock Exchange Listing

Social Stock Exchange Guide for Social Enterprises/Not for Profit Organisations (NPO)

The Social Stock Exchange (SSE) is a separate segment on BSE and NSE that is a platform to enable listing of Social Enterprises (Not for Profit Organizations). Listing of NPOs would enable the financing of projects of NPOs and thus create a pool of investors/donors which would also lead to greater achievement of social benefits for the economy as a whole.

Chapters

SSE Introduction

SSE stands for Social Stock Exchange. A social enterprise can raise funds through the SSE platform by complying with some conditions and processes.

Eligibility Criteria to qualify as Social Enterprise (SE)

Entities with eligible activities are only considered the social enterprises (SE) for registration on SSE. Only registered SE can raise funds through the listing on Social Stock Exchange.

Registration of NPO on SSE

A Not for profit organisation (NPO) which wants to list its securities (ZCZP) on Social Stock Exchange (SSE) has to register itself on SSE platform through Darpan Portal. Only an eligible NPO can register itself on SSE. After eligibility, there is a registration process to be followed for the same and documents and registration checklists which should be complied with and explained here. Benefit of registration on SSE provides visibility to the Social Entity and a common platform for the investors/donors to meet.

Listing process of ZCZP on SSE

ZCZP stands for Zero Coupon Zero Principle bonds. ZCZP is an instrument for NPOs to enable them to raise funds from the public on which no coupon and no principle is repayable on maturity. ZCZP are in demat form and these instruments are not traded in the secondary market. Listing process of ZCZP on BSE SSE or NSE SSE requires following certain steps and checklists.

Intermediaries Involved in listing of ZCZP

Listing of ZCZP on SSE is an interactive process with coordination of various parties involved in the process. Each party or intermediary has its own set of roles and responsibilities in the entire process of listing.

Post Listing Requirements for NPO

Non-profit organizations (NPOs) have to comply with the post listing regulations after listing their instruments on SSE. This requirement is similar to For-profit organizations (FPOs) which raise funds through equity or debt on the SME or Main Board platform and are subjected to comply with the SEBI (LODR) regulations for their post-listing requirements.

Annexure

Merchant Banker Mandate Letter

The mandate letter is an agreement between the merchant banker (lead manager) and the issuing company for their proposed SME IPO.

Market Making Agreement

The Market-Making Agreement is between the Market-Maker and issuer company for the proposed SME IPO. Market-Making is mandatory for shares listed on the SME Platform.

Underwriting Agreement

The Underwriting Agreement is between the Underwriter and issuer company for the proposed SME IPO. Underwriting is mandatory for shares listed on the SME Platform.

Registrar (RTA) Agreement

The registrar contract is concluded between the registrar and the company for the proposed SME IPO. The Registrar processes applications, allotment and transfer of shares and funds.