SEBI Proposes SSE-EBP Platform for NPO Fundraising

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  • Last Updated on 6 July, 2025

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SSE-EBP Platform

Draft Circular; Dated: 03.07.2025

The Securities and Exchange Board of India (SEBI) has proposed a new framework for a dedicated SSE Electronic Book Provider (SSE-EBP) platform aimed at streamlining fundraising by Not-for-Profit Organisations (NPOs) through the Social Stock Exchange (SSE). This initiative is part of SEBI’s continued efforts to improve transparency, accessibility, and efficiency in the fundraising process for NPOs.

1. Objective of the Proposed Framework

The key objective of this proposed framework is to facilitate the issuance of:

  • Zero Coupon Zero Principal (ZCZP) instruments, and
  • Other SEBI-permitted securities

The platform will offer a unified bidding and settlement mechanism, simplifying the fundraising process for eligible NPOs and their investors.

2. Mandatory Use of SSE-EBP for Large Fundraising

Under the draft circular, NPOs intending to raise ₹50 lakh or more—either in a single issue or through shelf issues—must mandatorily use the SSE-EBP platform.

3. Eligible Participants and Restrictions

The SSE-EBP will be accessible to a broad category of investors:

  • Qualified Institutional Buyers (QIBs)
  • Non-Institutional Investors (NIIs)
  • Retail Investors

However, certain entities will not be permitted to participate:

  • Foreign Portfolio Investors (FPIs)
  • Foreign Funds
  • Funds backed by foreign investors

4. Bidding Process and Timings

The bidding process on the SSE-EBP platform shall follow a standardised time window:

  • Timings – 9:00 AM to 5:00 PM
  • Days – Working days of recognised stock exchanges

Issuers must specify the duration of the bidding window in their official bidding announcement. They may also submit a list of interested participants for a specific issue at least one hour before the bidding begins.

5. Filing Requirements for Issuers

Issuers are required to submit specific documents in advance, including:

  • A Draft Fund Raising Document (DFRD)
  • A Term Sheet containing:
    1. Issue size
    2. Bidding terms
    3. Minimum lot size
    4. Mode of allotment

Filing Deadlines:

  • Two working days before the issue date
  • Five working days prior, if the issuer is accessing the platform for the first time

6. Penal Provisions for Withdrawal

Issuers who withdraw from an issue without valid reasons may face temporary debarment from the platform:

  • Penalty – Ban from the SSE-EBP platform for 7 days

Exceptions to the penalty include:

  • Issues that receive less than 75% subscription, or
  • Investor defaults on committed payments

7. Public Comments Invited

SEBI has invited public comments on the proposed framework. Stakeholders can submit their feedback by July 24, 2025.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied