SEBI may allow staff to invest in zero coupon zero principal security to invest in NPOs

The five NGOs who got listed on the NSE SSE were SGBS Unnati Foundation, Ekalavya Foundation, Transforming Rural India Foundation, Mukti, and Swami Vivekananda Youth Movement.

Market regulator SEBI will consider allowing its staff to buy zero coupon zero principle instruments to invest in non-profit organisations (NPO) listed in the NSE Social Stock Exchange (SSE) on March 15’s board meeting, Madhabi Puri Buch, SEBI chairperson said.

Speaking at NSE at the listing of 5 non-government organisations (NGOs) on the Social Stock Exchange, Buch said “We are going to the SEBI board meeting tomorrow to take permission for SEBI staff to be able to buy zero coupon zero principle bonds because we are not permitted to buy securities”.

The five NGOs, who got listed on the NSE Social Stock Exchange were SGBS Unnati Foundation, Ekalavya Foundation, Transforming Rural India Foundation, Mukti, and Swami Vivekananda Youth Movement. These entities have raised around Rs 8 crore, which will be used for development projects in areas such as education, skill development, agriculture, livelihoods women empowerment.

SEBI chairperson further said “Non-profit organisations play a pivotal role in facilitating inclusion of all citizens into the mainstream of the country. To play this role effectively, they need access to donors and their contributions.  The SSE has a critical role to play in this by fostering trust and transparency in the social sector.”

Ashishkumar Chauhan, MD & CEO of NSE said the framework of SSE provides "transparency, trust, efficiency, cost saving, discoverability, impact measurement and outcome-based philanthropy" to the entities.
In the SSE, NPOs and NGOs can list themselves and raise funds. NPOs can raise funds through zero coupon zero principle securities which do not pay interest. Donors can buy these securities to provide money to NPOs.