Securities and Exchange Board (Sebi) has boosted key rules for not-for-profit organisations on the Social Stock Exchange (SSE), extending the period during which NPO registration remains valid without fund-raising to three years from two, as it seeks to widen the fledgling platform’s reach.

The regulator issued a circular on Wednesday outlining measures it said were aimed at promoting the SSE and facilitating fundraising for non-profits facing practical hurdles, including delays in statutory and regulatory approvals.

Under the revised framework, an NPO may remain enrolled on an SSE for two years without raising capital through it. That window can be extended by a further year, subject to SSE approval — giving social-sector organisations more runway to ready themselves before tapping investors.

“A NPO may register on a SSE and not raise funds through it for a period of two years from the date of registration. Such period of two years may be further extended by one additional year subject to approval by the SSE,” Sebi said.

Sebi also slashed the minimum subscription threshold for Zero Coupon Zero Principal (ZCZP) instruments — the primary debt-like tool available to NPOs on the SSE — to 50 per cent from 75 per cent. The relaxation applies only to projects where costs and outcomes can be tracked on a clearly identifiable per-unit basis, ensuring that a partial fund-raise does not undermine project viability.

SSEs will be required to conduct due diligence before granting in-principle approval for such partial fundraising, satisfying themselves that proceeds can be deployed meaningfully toward the stated objectives. Funds will be refunded to investors if the minimum subscription threshold is not met.

The moves come weeks after Sebi’s board in March eased the minimum investment required from individual investors in social impact funds to Rs 1,000 from Rs 200,000, a step aimed at broadening retail participation on the SSE.

The SSE, launched in 2022, has struggled to attract widespread participation. Analysts have cited high compliance costs and rigid fundraising conditions as barriers for smaller NPOs. Wednesday’s circular signals continued regulatory effort to unlock the platform’s potential as a mainstream social-financing channel.