Sebi issues procedure for public issuance of 'zero coupon zero principle' instrument by NPOs
markets regulator Sebi on Thursday came out with a procedure for public issuance of 'zero coupon zero principle' instruments by not-for-profit organisations (NPOs) and listing of such instruments on the Social Stock Exchange (SSE). Under this, the SSE will have to specify the details to be incorporated in the fundraising document.
In 2022, the government declared «zero coupon zero principal instruments» as securities.
In a circular, Sebi said that an NPO, through the lead manager, is required to file the draft fundraising document with the SSE and an application seeking in-principle approval for listing the instrument on the SSE.
The SSE will provide its observation on the draft fundraising document to the NPO within 30 days from the filing of the papers or receipt of clarification, if any, sought by the exchange from the NPO, whichever is later.
NPO will incorporate the observations of the SSE in a draft document and file the final papers to the SSE prior to opening the issue.
The draft as well as the final fundraising document should contain all material disclosures, «which are true and adequate to enable the applicants to take an informed decision».
Listing out other conditions for 'zero coupon zero principle' instruments, Sebi said that such instruments will be issued in dematerialised form only, and are not transferable.
The minimum issue size has been set at Rs 50 lakh, the minimum application size at Rs 10,000 and the minimum subscription required to be achieved will be 75 per cent of the funds proposed to be raised through the issuance of such instruments.
In case of any under subscription, the NPO will have to provide details in the fundraising document on the manner of raising balance capital in case of
