SEBI Proposes Drastic Cut in Social Impact Fund Investment to Boost Retail Participation

• SEBI proposes reducing minimum investment in social impact funds from ₹2 lakh to ₹1,000 for individual investors.
• Aims to widen retail participation and ease fundraising for Not-for-Profit Organisations (NPOs) on the Social Stock Exchange (SSE).
• Suggests extending NPO registration period on SSE without fundraising from two to three years.
• Proposes lowering minimum subscription requirement for Zero Coupon Zero Principal Instruments (ZCZP) from 75% to 50% in specific cases.
• Measures intend to strengthen the SSE framework and encourage greater NPO participation.