In Mumbai, the Securities and Exchange Board of India (SEBI) has relaxed some fundraising norms for Non-Profit Organisations (NPOs) on social stock exchanges. Under the proposal, the regulator has suggested reducing the threshold of the minimum issue size as well as the application size for NPOs.The market regulator has reduced the minimum issue size of Zero Coupon Zero Principal Instruments from one crore rupees to 50 lakh rupees. The minimum investment amount for the investors has also been reduced from two lakh rupees to 10 thousand rupees.
SEBI Chairperson Madhabi Puri Buch yesterday informed media persons that SEBI’s Board has approved these proposals. It has also allowed non-profit organisations to disclose past social impact reports in the fundraising document as per their existing practice, but it must disclose the number of beneficiaries, cost per beneficiary and administrative overhead. SEBI’s Board also approved the introduction of Small & Medium Real Estate Investment Trusts (SM REITs). These will have an asset value of at least 50 crore vis-a-vis minimum asset value of 500 crore rupees for existing REITs.