SEBI has issued Modifications to NCS Master Circular dealing with registration and regulatory framework for Online Bond Platform Providers (OBPPs). The amendments introduce the concept of Zero Coupon Zero Principal Instruments, a unique financial instrument tailored for NPOs. These instruments are non-transferable, dematerialized, and have specific conditions regarding issue size, application size, and minimum subscription. This innovation enables NPOs to raise funds without the burden of traditional financial obligations like interest payments and principal repayment.
The Impact of SSE
The establishment of the SSE under SEBI’s regulations is a game-changer for social sector financing in India. It provides a structured and regulated environment for NPOs to access funding, which has traditionally been a challenge. By enabling these organizations to list and raise funds through the SSE, SEBI is broadening their scope for impact and scale.
For investors, the SSE offers a new avenue for socially responsible investments (SRI), allowing them to contribute to social causes while potentially earning returns. This aligns with the growing global trend of impact investing, where investments are made with the intention to generate positive, measurable social and environmental impact alongside a financial return.
