SEBI Proposes Dedicated Electronic Book Provider (EBP) Platform for NPOs on SSE

The Securities and Exchange Board of India (SEBI) has proposed a new framework to enhance fundraising mechanisms for not-for-profit organisations (NPOs) through the Social Stock Exchange (SSE).

What is SSE-EBP?

• The Securities and Exchange Board of India (SEBI) has proposed a dedicated Social Stock Exchange Electronic Book Provider (SSE-EBP) platform to enable fundraising by Not-for-Profit Organisations (NPOs).
• It will streamline issuance of Zero Coupon Zero Principal (ZCZP) instruments and other SEBI-approved securities.

Key Features:

Applicability

• Mandatory for NPOs raising ₹50 lakh or more in a single or shelf issuance.
• Open to Qualified Institutional Buyers (QIBs), Non-Institutional Investors, and Retail Investors.
• Foreign Portfolio Investors (FPIs) are not allowed to participate.

Bidding & Allotment Mechanism

• Bidding through an anonymous pooling system from 9 AM to 5 PM on working days, aligned with stock exchange timings.
• Allotment will follow first-come-first-serve (FCFS) or pro-rata basis.

Issuer Responsibilities

Issuers must file a Draft Fund Raising Document (DFRD) and Term Sheet outlining:

• Issue size
• Project details
• Bid terms
• Minimum application size
• Mode of allotment
  Submission deadlines:
• 2 days prior to issue for repeat issuers
• 5 days prior for first-time issuers

Penalties for Non-compliance

• Successful bidders who fail to make payment face a 30-day debarment.
• Issuers withdrawing issues without valid reason face a 7-day debarment unless exceptions apply (e.g., <75% subscription).

Objective and Benefits

• The platform aims to improve transparency, standardisation, and access to social sector funding.
• Aligns NPO fundraising with capital market infrastructure.
• Promotes confidence among institutional and retail investors.

TET