The Securities and Exchange Board of India (“SEBI”) in exercise of powers conferred under Section 11 and Section 11(A) of the Securities and Exchange Board of India Act, 1992 read with Regulation 299 of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 issued Circular No. SEBI/HO/CFD/PoD-1/P/CIR/2025/33[1], dated March 19, 2025, revising the minimum application size for subscribing to Zero Coupon Zero Principal (“ZCZP”) Instruments under the Social Stock Exchange (“SSE”) framework (“Circular”). The circular shall come into effect immediately.
The key highlights of the Circular are as enumerated below:
I. Background
- SEBI has previously notified the SSE framework through Circular No. SEBI/HO/CFD/PoD-1/P/CIR/2022/120, dated September 19, 2022. This framework was later amended via Circular No. SEBI/HO/CFD/PoD-1/P/CIR/2023/196, dated December 28, 2023.
- Based on recommendations from the SSE Advisory Committee and the feedback received from public consultations, SEBI has now decided to reduce the minimum application size for ZCZP Instruments.
II. Revision in Minimum Application Size
- The minimum application size for ZCZP Instruments shall now be reduced from INR 10,000 (Indian Rupees Ten Thousand) to INR 1,000 (Indian Rupees One Thousand).
- The relevant provision under Paragraph 1(AC), Point (4) of the previous SEBI circular shall now reads as:
“(4) The minimum application size shall be rupees one thousand.”
[1] https://www.sebi.gov.in/legal/circulars/mar-2025/framework-on-social-stock-exchange-sse-_92767.html