SEBI's new SIF rules could open doors for small investors
SEBI just proposed dropping the minimum investment for Social Impact Funds (SIFs) from ₹2 lakh all the way down to ₹1,000.
The goal? To let more everyday people support Non-Profit Organizations (NPOs) through the Social Stock Exchange, not just big investors.
Aligning SIF norms with other social finance tools
By matching rules for other social finance tools (like Zero Coupon Zero Principal instruments), SEBI is opening the door for small investors to get involved, aligning SIF norms with those instruments.
This shift follows recommendations by the Social Stock Exchange Advisory Committee and reflects SEBI's stated aim to widen retail participation and ease fundraising.
More breathing room for NPOs
SEBI's also proposing to give NPOs a bit more breathing room: they would have three years (instead of two) to stay registered on the Social Stock Exchange without fundraising.
Plus, SEBI has proposed that projects using ZCZP instruments in select cases—where costs and outcomes can be implemented on a clearly identifiable per-unit basis—would only need 50% of their target amount subscribed—down from 75%—subject to due diligence.