By Eldee
Markets regulator SEBI has proposed slashing the minimum investment by individual investors in Social Impact Funds (SIFs) to an accessible Rs 1,000 from Rs 2 lakh, in a bold move to boost retail participation and deepen the Social Stock Exchange (SSE) ecosystem.
Issued on February 9, 2026, the consultation paper outlines reforms to make social finance more inclusive, following recommendations from the Social Stock Exchange Advisory Committee (SSEAC). The changes aim to encourage greater involvement from not-for-profit organisations (NPOs) and small investors in funding social causes.
Key proposals include:
- Reducing the minimum investment threshold in SIFs (which invest in SSE-registered NPO securities) from Rs 2 lakh to Rs 1,000 under SEBI (AIF) Regulations, aligning it with the existing Rs 1,000 minimum for Zero Coupon Zero Principal (ZCZP) applications.
- Extending NPO registration validity on the SSE (without active fundraising) from two years to three years.
- Lowering the minimum subscription requirement for ZCZP issuances to enhance fundraising ease.
These steps build on the SSE framework operationalised since 2023 under SEBI’s (ICDR) and (LODR) Regulations, plus related circulars like the January 2026 Master Circular.
SEBI has invited public comments on the proposals and draft circular. Submissions can be made via the online portal or emailed to consultationcfd@sebi.gov.in.
The consultation remains open (typical 21-day period suggests comments likely due early March 2026; check the official SEBI page for the precise deadline).