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SEBI-Regulated Segment · ICDR Regulations

Social Stock Exchange
(SSE) Registration & ZCZP Fundraising

JurisTatva Advisors guides charitable trusts, societies and Section 8 companies through end-to-end registration on India's SEBI-regulated Social Stock Exchange — eligibility assessment, the 67% test, NGO Darpan, draft fund-raising documentation, ZCZP instrument issuance and annual social audit compliance.

✦ ZCZP Instrument Advisory ✦ 67% Eligibility Test ✦ NGO Darpan Registration ✦ Social Audit Support
0%
Coupon & Principal on ZCZP Instruments
0
Identified Eligible Social Activity Areas
0%
Minimum Activities to Target Population
0%
Minimum Subscription for a Successful Issue
SSE Registration ZCZP Instrument 67% Eligibility Test NGO Darpan Registration Draft Fund-Raising Document Social Audit SEBI ICDR Regulations Development Impact Bonds Section 8 & Trust & Society Annual Disclosures SSE Registration ZCZP Instrument 67% Eligibility Test NGO Darpan Registration Draft Fund-Raising Document Social Audit SEBI ICDR Regulations Development Impact Bonds
Overview

What is the Social Stock Exchange?

The Social Stock Exchange (SSE) is a separate segment of existing SEBI-recognised stock exchanges, first proposed in the Union Budget 2019-20 to make capital markets accessible for developmental goals. It connects social enterprises — non-profit and for-profit — with fund providers who value measurable, disclosed social impact.

The SSE operates under SEBI's ICDR Regulations, requiring registered entities to establish primacy of social intent, make continuous disclosures, and undergo an annual social audit by a certified social auditor — giving funders standardised, verifiable impact reporting.

JurisTatva guides charitable trusts, societies and Section 8 companies through the complete SSE registration and ZCZP fund-raising lifecycle — from eligibility assessment to the final fund-raising document and post-issue compliance. Full details are available on our dedicated venture platform, SocialExchangeListing.com.

SSE at a Glance
Regulated under SEBI's ICDR Regulations
SEBI
Fundraising instrument for NPOs
ZCZP
Minimum issue size
₹50L
Minimum application size
₹10K
Minimum subscription for success
75%
Public comment window on draft document
21 Days
Who Qualifies

Establishing Primacy of Social Intent

Under Regulation 292E(2) of the ICDR Regulations, an entity must satisfy all three criteria to be identified as a social enterprise.

01
Eligible Activity
Engagement in one of the seventeen identified social activities prescribed under Regulation 292E(2)(a) — spanning education, healthcare, livelihoods, environment and more.
02
Target Population
The activity must serve underserved or less-privileged population segments, or regions recording lower performance against central or state development priorities.
03
The 67% Test
At least 67% of activities — measured as the preceding 3-year average of revenue, expenditure or beneficiary base — must qualify. A single strong year is not enough if the 3-year average falls short.

Eligible Legal Forms

  • Charitable trust registered under the public trust statute of the relevant state
  • Charitable society under the Societies Registration Act, 1860
  • Section 8 company under the Companies Act, 2013
  • Any other entity specified by SEBI

Not Eligible

  • Corporate foundations, political or religious organisations or activities
  • Professional or trade associations
  • Infrastructure and housing companies, except affordable housing
  • NPOs depending on a single corporate for over 50% of funding, or under its controlling interest
Two Routes to Capital

Built for Non-Profits and For-Profit Social Enterprises

The SSE framework distinguishes between not-for-profit and for-profit social enterprises, each with its own path to raising mindful capital.

Not-for-Profit
NPOs
Charitable trusts, societies registered under the Societies Registration Act 1860, and Section 8 companies. After mandatory SSE registration, NPOs may raise funds through:
  • Zero Coupon Zero Principal (ZCZP) instruments — public issue or private placement
  • Donations through Mutual Fund schemes as specified by SEBI
  • Development Impact Bond structures
For-Profit
Social Enterprises (FPEs)
Companies or body corporates operating for profit (excluding Section 8 companies) that meet the social-enterprise criteria. No SSE registration is required — they raise funds through:
  • Equity shares on the Main Board, SME platform or innovators' growth platform
  • Equity issued to Alternative Investment Funds, including Social Impact Funds
  • Issuance of debt securities
Instrument Spotlight

Zero Coupon Zero Principal — a Security Built for Giving

ZCZP instruments carry a zero-coupon rate and repay no principal at maturity. They can be issued only by SSE-registered NPOs, for a specific project among the eligible activities, and for a specified duration — the funder receives a social return, not a financial one.

  • Issued in dematerialised form only — no physical certificates
  • Funds received by the NPO are treated as a grant; investors are treated as donors
  • Not tradable in the secondary market, but transferable — for instance, to legal heirs
  • Not subject to Securities Transaction Tax
  • Terminates on meeting the project object or expiry of tenure — equivalent to delisting

ZCZP Term Sheet

SEBI ICDR · Ch. X-A
IssuerSSE-registered NPO
CouponZero
Principal at MaturityNil
Minimum Issue Size₹50,00,000
Minimum Application₹10,000
Minimum Subscription75%
PurposeSpecific Project
ReturnSocial Return
Fundraising Process

Public Issuance of ZCZP — Step by Step

The same procedure applies, to the extent applicable, to private placements to social impact funds registered under the SEBI AIF Regulations, 2012. No merchant banker is required for preparing the draft document.

1
Stage 1
Eligibility Assessment & NGO Darpan
We confirm the NPO's legal form, eligible activity, target population and the 67% test, and complete mandatory registration on the NGO Darpan portal — a prerequisite before SSE registration.
Legal Form Check67% TestNGO Darpan
2
Stage 2
SSE Registration & Checklist
We assemble the Certificate of Incorporation, 3 years of audited financials, valid 12A/12AB and 80G certificates, and confirm the ₹50 lakh annual spending and ₹10 lakh funds thresholds before filing SSE registration.
3-Year Financials12A / 80G₹50L Spending
3
Stage 3 · Critical Step
Draft Fund-Raising Document
We file the draft document with the SSE along with prescribed fees and an application for in-principle approval to list ZCZP instruments — containing all material disclosures needed for an informed investment decision.
Draft DocumentIn-Principle ApprovalMaterial Disclosures
4
Stage 4 · Min. 21 Days
Public Comment & SSE Observations
The SSE hosts the draft document for public comment for at least 21 days. The exchange may seek clarifications and provides its observations within 30 days, valid for 6 months.
Public CommentSSE ObservationsQuery Handling
5
Stage 5
Final Filing, Issue & Allotment
We incorporate the SSE's observations, file the final fund-raising document, and open the issue. Success requires 75% minimum subscription; below that threshold, funds are refunded and the SSE maintains allotment details.
Final Document75% SubscriptionAllotment
Registration Checklist

Minimum Requirements to Register on the SSE

Prescribed by SEBI's circular dated 19 September 2022; exchanges may prescribe additional requirements. Our team assists in assembling and certifying every document.

Eligibility Documents
3 Years in Operation
Certificate of Incorporation + audited financials for 3 years
12A / 12AA / 12AB Certificate
Valid income-tax registration under the applicable regime
80G Registration
Valid certificate under the Income Tax Act
NGO Darpan Registration
Mandatory before registering on the SSE
Financial Thresholds
Minimum Annual Spending
At least ₹50 lakh spent annually
Minimum Funds Handled
At least ₹10 lakh of funds in the past financial year
Certified Documents
Certified by CEO, Managing Trustee, Statutory Auditor, or two authorised signatories
Indian Entities Only
International NPOs are not eligible to register
Post-Registration
Continuous Disclosures
Initial and annual reporting on governance, financial and social impact aspects
Material Event Reporting
Any event materially affecting outcomes reported within 7 days
Annual Social Audit
Independent assessment by a certified NISM-qualified Social Auditor
Annual Renewal
Renewable even in a year with no fund-raising, subject to disclosures

SSE Registration, Handled End to End

From the 67% test to your first ZCZP issue — JurisTatva manages every filing, deadline and disclosure so your team can focus on impact, not paperwork. Detailed guides for NPOs and investors are also available on SocialExchangeListing.com

Book a Free Consultation →
FAQs

Frequently Asked Questions

Everything you need to know about Social Stock Exchange registration and ZCZP fundraising — answered by our experts.

The Social Stock Exchange is a separate segment of existing SEBI-recognised stock exchanges, conceived in the Union Budget 2019-20, that connects social enterprises and NPOs with mindful capital by enabling fundraising against measurable, disclosed and audited social impact.

Zero Coupon Zero Principal (ZCZP) is a fundraising instrument that carries no coupon and repays no principal at maturity. It can only be issued by SSE-registered NPOs for a specific project, and funds received are treated as a grant — the funder receives a social return, not a financial one.

Charitable trusts registered under a state public trust statute, societies registered under the Societies Registration Act 1860, and Section 8 companies under the Companies Act 2013 are eligible — provided they meet the three-part social intent test: eligible activity, genuine target population, and the 67% test.

At least 67% of an NPO's activities, measured as a 3-year average of revenue, expenditure or beneficiary base, must relate to an eligible social activity directed at an underserved or less-privileged target population. A single strong year does not qualify an NPO if the 3-year average falls below this threshold.

Yes. Registration on the NGO Darpan portal, maintained by NITI Aayog, is a mandatory prerequisite before an NPO can register on the Social Stock Exchange. We complete this as the first step of our SSE onboarding process.

An NPO must be at least three years old with audited financials, spend a minimum of ₹50 lakh annually, and have handled a minimum of ₹10 lakh of funds in the past financial year, in addition to holding valid 12A/12AB and 80G certificates.

A ZCZP public issue must achieve at least 75% subscription to succeed. Between 75% and 100%, the fund-raising document must explain how the balance capital will be raised. Below 75%, subscription funds are refunded to applicants.

With complete documentation, JurisTatva typically completes SSE registration in around two weeks. The ZCZP fund-raising process itself includes a mandatory minimum 21-day public comment window and SSE observations within 30 days, so overall fundraising timelines depend on exchange processing.

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