Description

BSE introduces bidding mechanism for Zero Coupon Zero Principal (ZCZP) instruments on the Social Stock Exchange platform with specified file formats for SCSB uploads and responses.

Summary

BSE has introduced a bidding mechanism for Zero Coupon Zero Principal (ZCZP) instruments on the Social Stock Exchange (SSE) platform. The circular provides detailed file format specifications for Self-Certified Syndicate Banks (SCSB) to upload bid data and receive response files. This enables structured fundraising through ZCZP instruments on the SSE platform.

Key Points

  • New bidding facility introduced for ZCZP instruments on Social Stock Exchange
  • Standardized upload file format specified for SCSB participants
  • Response file format defined for acknowledgment and status updates
  • Mandatory DEMAT mode for all bids through ASBA mechanism
  • Support for both CDSL and NSDL depository systems
  • Action codes provided for new (N), modify (M), and delete (D) operations
  • PAN, IFSC code, and depository details are mandatory fields
  • Bid IDs are system-generated by the exchange

Regulatory Changes

This circular establishes the operational framework for ZCZP instrument bidding on SSE, introducing:

  • Structured data exchange format between banks and BSE
  • Mandatory fields including Scrip ID, Quantity, Rate (face value), Application Number, PAN, Category, IFSC Code
  • Depository information (CDSL/NSDL, DP ID, Client/Beneficiary ID) required for DEMAT transactions
  • Series value fixed at “0” for all SSE ZCZP bids
  • Cut-off flag set to “0” (zero) as standard

Compliance Requirements

For Self-Certified Syndicate Banks (SCSB):

  • Use specified 18-field upload file format for bid submissions
  • Ensure mandatory DEMAT mode (Type = 1) for all bids
  • Provide complete depository details (Depository, DP ID, Client/Beneficiary ID)
  • Include valid PAN numbers for all applicants
  • Use appropriate client sub-category codes (11, 12, 21, 32, etc.) as per SEBI guidelines
  • Maintain proper action codes (N/M/D) for bid lifecycle management
  • Upload bank account numbers and IFSC codes for fund blocking
  • Generate or capture cheque received flags and amounts appropriately

File Format Compliance:

  • Alphanumeric fields: Scrip ID (10 chars), Application No (16 chars), PAN (10 chars)
  • Numeric fields: Quantity (11 digits), Rate (6.2 format)
  • Depository fields: DP ID and Client/Beneficiary ID (16 chars)
  • IFSC Code: 11 characters, Account Number: 16 characters

Important Dates

No specific implementation or effective dates mentioned in the circular. The mechanism appears to be introduced for immediate operational use.

Impact Assessment

Market Impact:

  • Expands fundraising options for social enterprises and non-profit organizations through SSE
  • ZCZP instruments provide alternative funding mechanism without coupon or principal repayment obligations
  • Enhances SSE platform capabilities and attracts social sector entities

Operational Impact:

  • Banks and syndicate members need to implement new file format specifications
  • System integration required for automated bid upload and response processing
  • ASBA and DEMAT requirements ensure transparent and efficient fund blocking and allocation
  • Standardized format reduces manual processing and errors

Participant Impact:

  • Self-Certified Syndicate Banks must update their systems to support the specified file formats
  • Investors in ZCZP instruments will benefit from streamlined bidding process
  • Social enterprises gain structured access to capital markets through SSE

Technical Specifications

Upload File Format: 18 fields including Scrip ID, Quantity, Cut Off Flag, Rate, Application No, Depository details, PAN, Category, Account Number, IFSC Code, Bank Reference Number, Cheque details, Type, Series, Bid ID, and Action Code

Response File Format: Mirrors upload format with 14+ fields for acknowledgment and status tracking

Key Technical Parameters:

  • Type: Always “1” (DEMAT mandatory)
  • Series: Always “0”
  • Cut Off Flag: “0” (zero)
  • Bid ID: System-generated (0 for new bids with Action Code ‘N’)

Impact Justification

Introduces new bidding mechanism for specialized SSE instruments affecting syndicate members and banks participating in ZCZP fundraising, with operational impact on file upload processes