Social Stock Exchange (SSE) is a separate segment of existing stock exchanges that helps social enterprises raise funds from the public through stock exchange mechanisms.
On Kite, you can contribute ₹1,000 to ₹5,00,000 to an SSE IPO, depending on the issue.
How does contributing via the SSE work?
Contributing via the SSE works somewhat like participating in an IPO, but with one key difference: there is no selling or trading of the SSE instruments. Instead, you can choose an SSE listing, make your contribution, and the funds will be directed toward the specific social impact initiatives of the chosen enterprise.
How much can you contribute?
On Kite, you can contribute anywhere between ₹1,000 and ₹5,00,000, depending on the specific SSE IPO. Your contribution will then appear in your holdings as a ZCZP (Zero-Coupon Zero-Principal) instrument.
What are Zero Coupon Zero Principal (ZCZP) instruments?
ZCZP instruments are unique to SSE and work differently from traditional investments. When you invest in ZCZP instruments, you're essentially making a grant to support specific social projects.
Key features of ZCZP instruments
- No returns or principal repayment (hence zero coupon zero principal)
- Cannot be traded in the secondary market
- Available only in dematerialised form
How are ZCZP investments treated?
- Your investments in ZCZP instruments are treated as grants for accounting purposes
- Standard securities regulations apply to for-profit social enterprise investments
How to Apply for an SSE IPO on Kite?
- Log in to Kite.
- Click on IPO & Bids.
- Click on SSE IPO section, select the SSE IPO you wish to apply for.
- Click on Give back .
- Enter the contribution amount , your UPI ID , and click on Proceed .
- You will receive a UPI mandate request in your UPI app; approve the UPI mandate request before the issue closes to complete your application.
What can you expect as an SSE supporter?
Transparency and reporting
All registered social enterprises must provide detailed reports covering:
- The social problem they solve
- Their target beneficiaries
- Their approach and impact metrics
- Financial details and governing body information
Tax benefit
- 80-G income tax deduction for your contribution