Ministry of Corporate Affairs (MCA) has added a new entry (Entry No. xiii) in Sch. VII of the Companies Act 2013, allowing ‘Subscriptions to Zero Coupon Zero Principal (ZCZP) instruments listed on Social Stock segment of various stock exchanges’[1].
[2]The above subscriptions are subjected to following conditions:
- MCA has limited that maximum amount that a company can invest through ZCZP is 10% of the total CSR Expenditure for that FY.
- The NPO can issue ZCZP Bonds for a project, which will not be for a period more than the three years plus year in which introduced.
- At the end of the project, NPO would need to transfer any unspent amount to any of the Sch VII listed funds, thus no need to transfer back unspent funds to the company at the end of the Financial Year.
- Company management is not responsible for giving UC for such a project, that means, subscription amount to such Bonds will be treated as CSR expenditure for reporting by the company.
- Company management is not responsible for monitoring of such projects, presumably as SSE requires such NGOs to submit annual and project-end evaluation reports to SSE portal.
For any further information on above topic, watch out for further post.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
[1]GSR 416(E) dt 27-5-2026
[2]GSR 415(E) dt 27-5-2026