Swades Foundation Seeks Rs 10 Crore Through Zero Coupon Zero Principal Bonds

The Swades Foundation, a prominent non-profit organisation founded by Zarina and Ronnie Screwvala, announced the launch of its Rs 10-crore zero coupon zero principal instrument on the National Stock Exchange.

This marks the largest issue size ever undertaken by a non-profit organisation on the Social Stock Exchange.

The zero coupon zero principal issue, which is open for online subscription until Aug. 13, aims to support a range of Swades Foundation’s initiatives. These include providing sustainable livelihood through goat rearing, health and hygiene projects, youth education, and employability schemes.

Zero coupon zero principal instruments are unique donation vehicles designed for non-profits listed on the SSE, providing transparency and accountability in fund utilisation.

Ronnie Screwvala, co-founder of the Swades Foundation, emphasised the importance of SSE’s diligence in listing and reporting, stating that it enhances credibility and encourages new retail donors.

Swades Foundation has made significant strides in rural empowerment over the past 11 years, impacting 3,310 villages in Maharashtra's Raigad and Nashik districts, serving an estimated 1.1 million people.

Ashishkumar Chauhan, chief executive officer and managing director of NSE, noted that the SSE has seen increasing engagement from non-profits, with Swades Foundation's current issue alone raising Rs 10 crore—almost equivalent to the total of the first seven issues combined. This reflects growing interest and trust in the SSE platform among non-profits and donors alike.

In a move to broaden participation, the Securities and Exchange Board of India recently revised regulations for zero coupon zero principal instruments.

As of November 2023, the issue size threshold was reduced from Rs 1 crore to Rs 50 lakh, and the minimum application size for donors was lowered from Rs 2 lakh to Rs 10,000.

(With inputs from PTI)