{"id":38834,"date":"2023-12-29T03:05:49","date_gmt":"2023-12-28T21:35:49","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=38834"},"modified":"2025-04-23T21:26:58","modified_gmt":"2025-04-23T15:56:58","slug":"roadmap-for-public-issuance-of-zero-coupon-zero-principle-instruments-by-npos","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/roadmap-for-public-issuance-of-zero-coupon-zero-principle-instruments-by-npos\/","title":{"rendered":"Roadmap for Public Issuance of \u2018Zero Coupon Zero Principle\u2019 Instruments by NPOs"},"content":{"rendered":"<h2><strong>What\u2019s in today\u2019s article?<\/strong><\/h2>\n<ul>\n<li>Why in News?<\/li>\n<li>What is the Social Stock Exchange (SSE)?<\/li>\n<li>What are Zero Coupon Zero Principal (ZCZP) Instruments?<\/li>\n<li>Roadmap for Public Issuance of ZCZP Instruments by NPOs<\/li>\n<\/ul>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>The SEBI unveiled a roadmap for public issuance of \u2018zero coupon zero principle\u2019 instruments by not-for-profit organisations (NPOs) and listing of such instruments on the Social Stock Exchange (SSE).<\/li>\n<\/ul>\n<h2><strong>What is the Social Stock Exchange (SSE)?<\/strong><\/h2>\n<ul>\n<li>SSE is <strong>a separate segment of the existing Stock Exchange<\/strong> that can help Social Enterprise(s) to raise funds from the public through the stock exchange mechanism.<\/li>\n<li>SSE will act as <strong>a medium between Social Enterprises and fund providers <\/strong>and that can help them to select those entities that are creating measurable social impact and reporting such impact.<\/li>\n<li>Certain types of Social Enterprises i.e <strong>Not-for-profit organisations (NPOs)<\/strong> that meet the registration criteria can register on SSE and undertake to make continuous disclosures on their social impact.\n<ul>\n<li>Such NPOs may or may not choose to raise funds through SSE, however, would continue to make disclosures including on social impact to stock exchanges.<\/li>\n<li>A NPO after registering with SSE may raise funds on SSE through<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>\u25a0 Issuance of <strong>Zero Coupon Zero Principal Instruments<\/strong> [through private placement or public issuance<\/p>\n<p>\u25a0 Donations through Mutual Fund Schemes [as shall be specified by SEBI]<\/p>\n<p>\u25a0 Development Impact Bonds<\/p>\n<p>\u25a0 Any other means that SEBI may specify in future<\/p>\n<h2><strong>What are Zero Coupon Zero Principal (ZCZP) Instruments?<\/strong><\/h2>\n<ul>\n<li>These instruments are <strong>not stocks or bonds<\/strong> but instruments for donating money to the NPOs listed in the SSE.<\/li>\n<li>As the name indicates, ZCZP <strong>neither offers interest nor returns the principal<\/strong>.<\/li>\n<li>As it is a donation to the entity, not a loan or investment, the money will not be returned to the donor.<\/li>\n<li>In 2022, the government declared \u2018zero coupon zero principal instruments\u2019 as <strong>securities<\/strong>.<\/li>\n<\/ul>\n<h3><strong>Roadmap for Public Issuance of ZCZP Instruments by NPOs:<\/strong><\/h3>\n<ul>\n<li>According to the Securities and Exchange Board of India (SEBI),<strong> such instruments will be issued in dematerialised form only, and are not transferable<\/strong>.<\/li>\n<li>The minimum issue size has been set at Rs 50 lakh, the minimum application size at Rs 10,000 and the minimum subscription required to be achieved will be 75% of the funds proposed to be raised through the issuance of such instruments.<\/li>\n<li><strong>An NPO<\/strong>, through the lead manager, is required to file the draft fundraising document with the SSE and an application seeking in-principle approval for listing the instrument on the SSE.<\/li>\n<li><strong>The SSE will provide its observation<\/strong> on such documents to the NPO within 30 days from the filing of the papers or receipt of clarification, if any, sought by the exchange from the NPO.<\/li>\n<li>NPO will incorporate the observations of the SSE in a draft document and file the final papers to the SSE prior to opening the issue.<\/li>\n<li>The SSE will have to specify the details to be incorporated in the fundraising document.<\/li>\n<\/ul>\n<hr \/>\n<h3><strong>Q1) What is the Securities and Exchange Board of India (SEBI)?<\/strong><\/h3>\n<p>SEBI is the regulatory body for securities and commodity markets in India under the administrative domain of the Ministry of Finance within the Government of India.<\/p>\n<h3><strong>Q 2) What is a demat account?<\/strong><\/h3>\n<p>A demat account is an Indian term for a dematerialised account that holds financial securities digitally and to trade shares in the share market.<\/p>\n<hr \/>\n<p><strong><u>Source:<\/u> <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/sebi-unveils-norms-for-zero-coupon-instruments-by-npos-9086924\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Sebi unveils norms for zero coupon instruments by NPOs<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SEBI unveiled a roadmap for public issuance of \u2018zero coupon zero principle\u2019 instruments by NPOs and listing of such instruments on the Social Stock Exchange (SSE)<\/p>\n","protected":false},"author":5,"featured_media":38835,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-38834","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/38834","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=38834"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/38834\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/38835"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=38834"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=38834"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=38834"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}