Pravasi Samwad Surat Bureau
February 10, 2026
India’s stock market regulator Tuesday proposed a huge 99.5 percent cut in the minimum investment of Rs 200,000 in Social Impact Funds (SIF).
The Securities and Exchange Board of India (SEBI) wants to bring the entry point down from ₹2 lakh to ₹1,000 to attract more small investors and strengthen the Social Stock Exchange (SSE).
SEBI released the proposal in a consultation paper after discussions with the Social Stock Exchange Advisory Committee (SSEAC).
The regulator said a lower threshold would open the door to a wider pool of investors and help channel more money into social enterprises.
A Social Impact Fund is a privately pooled investment vehicle regulated by SEBI. It invests in non-profits and for‑profit social enterprises that work on issues such as poverty, health, and education. These funds fall under Category I of the Alternative Investment Fund (AIF) framework and aim to deliver both financial returns and measurable social impact.
Under current AIF rules, an individual must invest at least ₹2 lakh in an SIF that puts money only into securities of not‑for‑profit organisations listed or registered on the Social Stock Exchange.
SEBI now wants this requirement to match the minimum application size for Zero Coupon Zero Principal (ZCZP) instruments, which is set at ₹1,000 from March 19, 2025.
The consultation paper also proposes other changes to make the SSE more effective.
SEBI wants to allow not‑for‑profit organisations to stay registered on the exchange for up to three years without raising funds, instead of the current two. This extension would help organisations facing delays in approvals or project planning.
SEBI also suggested reducing the minimum subscription level for ZCZP issues from 75 percent to 50 percent in cases where project costs and outcomes can be divided proportionately.
The regulator has invited public comments before finalising the changes
