SEBI extends NPO registration validity for SSE and lowers minimum subscription for ZCZP

Current Context: The Securities and Exchange Board of India (SEBI) issued Circular No. HO/49/14/2026‑CFD‑POD1 on 15 April 2026.

• It introduced relaxations in the Social Stock Exchange (SSE) framework to ease fundraising for Not‑for‑Profit Organisations (NPOs).
• Registration validity for NPOs has been extended from 2 years to 3 years, with an option of a 1‑year extension.
• The minimum subscription requirement for Zero Coupon Zero Principal (ZCZP) instruments has been reduced from 75% to 50%, applicable to per‑unit viable projects.
• This means NPOs can retain funds even if only half the target is raised, provided the project remains viable.
• The minimum application size has already been lowered earlier from ₹10,000 to ₹1,000, making participation more inclusive.
• Overall, these changes aim to boost NPO participation, reduce compliance pressure, and strengthen social finance through SSE.

Question:

Q.1 According to SEBI, the minimum subscription requirement for Zero Coupon Zero Principal instruments (ZCZP) instruments has been reduced to:
a) 25%
b) 50%
c) 60%
d) 75%

Answer: b) The minimum subscription requirement for Zero Coupon Zero Principal (ZCZP) instruments has been reduced from 75% to 50%, applicable to per‑unit viable projects.