The Securities and Exchange Board of India has given final approval to the National Stock Exchange of India to establish a social stock market as a distinct division of the NSE.
To establish a social stock exchange that will allow not-for-profit organisations to obtain capital in the form of equities, debt, or mutual fund units, the regulator gave its in-principle approval to the NSE in December.
The not-for-profit organisations can raise money by publicly or privately issuing "zero coupon zero principal" securities after registering on the exchange. One can subscribe to the issue if they want to donate to nonprofit organisations.
The current minimum issue size for "zero coupon zero principal" securities is set at 100 million rupees, and the current minimum application size for subscription is set at 2,000,000 rupees.
The regulator had also given BSE final licence in December to launch the social stock market.
With inputs from Agencies.
