SEBI cuts minimum application size for issuances on social stock exchanges to a tenth, from Rs 10,000 to Rs 1,000

A consultation paper on this had been floated by SEBI on March 7, 2025.

The market regulator has cut the minimum application size for zero coupon zero principal (ZCZP) instruments by a tenth to Rs 1,000 from the earlier Rs 10,000.

ZCZP are issued through the social stock exchanges (SSEs).

The current application size is a sharp drop from the Rs 2 lakh size that had been the minimum application size prescribed in the initial framework for SSEs in 2022. The minimum size was reduced to Rs 10,000 in December 2023 to drive more participation.

In the latest circular issued on March 19, the Securities and Exchange Board of India (SEBI) said that the minimum application size had been reduced to Rs 1,000.

A consultation paper on this had been floated by SEBI on March 7, 2025.

The paper had said that the Social Stock Exchange Advisory Committee (SSEAC) had recommended that the application be reduced to drive retail participation.

The consultation paper had said, "Based on the deliberations in the special outreach session, and the fact that  introduction of UPI mechanism for applications will boost reachof SSE platform, SSEAC has recommended that minimum application size for ZCZP issuance may be reduced to Rs. five thousand or such other smaller amount so as to enable more retail participation in ZCZP issuances by NPO on SSE."

The paper had asked for public comments on whether it should be reduced to Rs 5,000 or Rs 1,000.

The current circular has announced the lower of the two suggestions.

The March 19 circular said, "Based on recommendations of the Social Stock Exchange Advisory Committee and public comments received in respect of the Consultation paper in the matter, it is decided to review the existing minimum application size for subscribing to Zero Coupon Zero Principal Instruments from Rs. 10,000 (Rupees ten thousand only) to a lower amount i.e. Rs. 1,000 (Rupees one thousand only)."