Sebi plans to cut minimum SIF investment

Mumbai: The Securities and Exchange Board of India (Sebi) has proposed to reduce the minimum investment amount by individual investors in social impact funds (SIF) to ₹1,000 from ₹2 lakh.

"The proposed reduction in the minimum value of investment would enable the SIFs to attract small investors to invest in the securities of the NPOs (not for profit organisations) through the SIF," Sebi said in a discussion paper on Monday.

The regulator said the move is also aimed at aligning it with the minimum subscription size of zero coupon zero principal (ZCZP) instruments on the social stock exchange. Sebi has also proposed to extend the period of registration for NPOs to three years from the current two years without undertaking fundraising through the social stock exchange.


Further, it has suggested to reduce the minimum subscription requirement for issuance of ZCZP instruments to 50% from 75% for the projects where the cost of the disclosed objects of the project can be proportionately allocated on a "per unit" basis, subject to appropriate due diligence by the social stock exchange.