SEBI Proposes Lower Entry Barrier for Retail Investors in SSE: Cuts Minimum Investment to ₹1,000

On Monday, February 10, 2026, the capital markets regulator SEBI unveiled proposals to significantly lower the entry barrier for individual investors in social impact funds, cutting the minimum investment amount to ₹1,000 from the current ₹2 lakh. The move is aimed at expanding retail participation and making it easier for not-for-profit organisations (NPOs) to raise funds through the Social Stock Exchange (SSE).

In a consultation paper, SEBI also suggested a longer registration window for NPOs on the SSE even if they are not actively raising funds, along with a reduction in the minimum subscription requirement for Zero Coupon Zero Principal (ZCZP) instruments.

According to the regulator, these measures are designed to further strengthen the SSE ecosystem, streamline fundraising processes, and encourage broader participation from NPOs.

Minimum Investment Threshold to Be Aligned

At present, the Alternative Investment Fund (AIF) regulations mandate a minimum investment of ₹2 lakh from individual investors in social impact funds that invest solely in securities of NPOs listed or registered on the SSE. SEBI has now proposed slashing this threshold to ₹1,000, bringing it in line with the minimum application size prescribed for ZCZP instruments under the ICDR framework. This alignment is expected to open the door for wider retail involvement in impact-oriented investments.

Longer Registration Period for NPOs

On the registration side, SEBI has recommended extending the duration for which NPOs can remain registered on the SSE without fundraising, from two years to three years, subject to approval by the exchange. The proposal factors in operational realities faced by NPOs, including delays in obtaining statutory and regulatory clearances.

Also Read: Upcoming IPO: SEBI Allowed 8 Companies, Including Elevate Campuses, InCred Holdings to Float IPO

Easing Subscription Norms for ZCZP Issuances

Additionally, SEBI has proposed easing the minimum subscription requirement for ZCZP issuances to 50 per cent from the existing 75 per cent in specific cases. This relaxation would apply only to projects where costs and outcomes are clearly measurable on a per-unit basis, ensuring that partial subscriptions do not hinder effective project implementation.

In such instances, SSEs would be required to conduct due diligence to confirm that funds raised at the reduced threshold can still be deployed meaningfully in line with the stated objectives, the regulator noted.

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