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MUMBAI: SGBS Unnati Foundation, a Bengaluru-based not-for-profit (NPO) organisation, is set to be the first entity in the country to list on a social stock exchange (SSE).
The foundation will open its zero-coupon-zero-principal (ZCZP) bond offering for Rs 2 crore on Monday. The issue will close on November 7, its top officials told TOI. The bonds are expected to be listed on SSEs of NSE and BSE on November 30.
An SSE is an exchange that works towards the benefit of society by connecting people willing to fund welfare initiatives.In comparison, a commercial stock exchange has a profit motive as one of its core objectives. On an SSE, instruments listed are not traded like on regular exchanges, since there’s no interest payment and no refund of principal at the end of the tenure. The listing of an entity is for fund-raising.
ZCZPs are debt instruments (bonds) issued to finance a project, and they neither pay any interest during the tenure of the bond nor pay back the principal once the project ends and these bonds cease to exist. On July 16, 2022, the government had allowed not-for-profit organisations to issue ZCZP bonds.
Unnati Foundation will use the funds train up to 10,000 graduating youths from government colleges to assist them in employment placement through the foundation’s UNXT programme – the prospectus for the bond offering noted.
The foundation will open its zero-coupon-zero-principal (ZCZP) bond offering for Rs 2 crore on Monday. The issue will close on November 7, its top officials told TOI. The bonds are expected to be listed on SSEs of NSE and BSE on November 30.
An SSE is an exchange that works towards the benefit of society by connecting people willing to fund welfare initiatives.In comparison, a commercial stock exchange has a profit motive as one of its core objectives. On an SSE, instruments listed are not traded like on regular exchanges, since there’s no interest payment and no refund of principal at the end of the tenure. The listing of an entity is for fund-raising.
ZCZPs are debt instruments (bonds) issued to finance a project, and they neither pay any interest during the tenure of the bond nor pay back the principal once the project ends and these bonds cease to exist. On July 16, 2022, the government had allowed not-for-profit organisations to issue ZCZP bonds.
Unnati Foundation will use the funds train up to 10,000 graduating youths from government colleges to assist them in employment placement through the foundation’s UNXT programme – the prospectus for the bond offering noted.
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