MCA allows CSR spending through Zero Coupon Zero Principal instruments on Social Stock Exchange
The Ministry of Corporate Affairs added item (xiii), 'Subscription to zero coupon zero principal instruments on Social Stock Exchange', to Schedule VII of the Companies Act, 2013, allowing such subscriptions to count as CSR.
Summary
The Ministry of Corporate Affairs widened Schedule VII of the Companies Act, 2013, by adding a new item (xiii): 'Subscription to zero coupon zero principal instruments on Social Stock Exchange'. It also amended the CSR Policy Rules, 2014, defining 'Not for Profit Organization' and 'Zero Coupon Zero Principal Instrument' in Rule 2, with implementation criteria under Rule 4A. Responsibility for project execution and evaluation lies with the not-for-profit organisation raising the funds.
Key facts
- Change
- New item (xiii) in Schedule VII, Companies Act 2013
- Item
- Subscription to zero coupon zero principal instruments on Social Stock Exchange
- Rules amended
- CSR Policy Rules, 2014 – Rule 2 (definitions), Rule 4A (criteria)
- Responsibility
- Not-for-profit organisation raising funds executes and evaluates projects
Practice MCQs 2 questions
In May 2026, subscription to zero coupon zero principal instruments on the Social Stock Exchange was added as a CSR activity in which part of the Companies Act, 2013?
Show answer
Correct answer: D — Schedule VII
MCA added new item (xiii) to Schedule VII of the Companies Act, 2013, which lists CSR activities.
Under the May 2026 CSR amendment on Zero Coupon Zero Principal (ZCZP) instruments, who is responsible for project execution and evaluation?
Show answer
Correct answer: B — The Not for Profit Organization raising funds through ZCZP
MCA said responsibility for project execution and evaluation will be on the Not for Profit Organization raising funds through ZCZP instruments.