MCA facilitates Corporate Social Responsibility (CSR) through Zero Coupon Zero Principal Instrument by expanding the scope of Schedule VII of the Companies Act, 2013

• Ministry of Corporate Affairs (MCA) has amended Schedule VII of the Companies Act, 2013 by inserting a new item (xiii): "Subscription to Zero Coupon Zero Principal Instruments (ZCZP) on Social Stock Exchange (SSE)" as a permissible CSR activity.
• Couples the corporate CSR mandate (Section 135) with the SEBI-regulated SSE ecosystem, channelling 2% CSR funds to Not-for-Profit Organisations (NPOs) via market-traded debt-like instruments.
• Relevance: aligns with Viksit Bharat vision; tests knowledge of Companies Act, SEBI regulations, and capital-market innovation for social finance.