SEBI has approved a sharp reduction in the minimum investment threshold for individual investors in Social Impact Funds (SIFs), a sub-category of Alternative Investment Funds (AIFs), to ₹ 1,000 from ₹2 lakh now.
The change aligns the entry threshold for SIFs with that of Zero Coupon Zero Principal (ZCZP) instruments listed on Social Stock Exchanges (SSEs), making such investments more accessible to small investors.
The reform is expected to strengthen participation on India’s Social Stock Exchange, a new platform designed to channel capital towards non-profit organisations and for-profit social enterprises working in areas such as education, healthcare and livelihood generation.
Fund raising
SSEs enable social enterprises to raise funds through instruments like ZCZP bonds, where investors contribute capital without expecting financial returns, or through equity-like structures in the case of for-profit entities.
Market participants had flagged high entry barriers as a key constraint limiting retail interest in such instruments. By lowering the ticket size, SEBI aims to broaden the investor base and improve funding access for social enterprises.