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

Q1. The 2026 notification expanding Schedule VII of the Companies Act, 2013 to make subscription to ZCZP instruments an eligible CSR activity was issued by which one of the following?

  • A. Ministry of Corporate Affairs
  • B. Ministry of Finance
  • C. Securities and Exchange Board of India
  • D. Ministry of Social Justice and Empowerment

Q2. As per the 2026 Schedule VII amendment, the CSR expenditure incurred by a company on subscription to ZCZP instruments shall not exceed what proportion of its total CSR expenditure for that financial year?

  • A. 2 percent
  • B. 5 percent
  • C. 10 percent
  • D. 15 percent

Q3. With effect from 19 March 2025, SEBI revised the minimum application size for contribution towards subscription of ZCZP instruments issued by NPOs on the Social Stock Exchange to which one of the following amounts?

  • A. ₹1,000
  • B. ₹10,000
  • C. ₹50,000
  • D. ₹2,00,000

Q4. Under the regulatory architecture of the Social Stock Exchange, which one of the following authorities is empowered to prescribe the conditions subject to which NPOs may issue ZCZP instruments?

  • A. Securities and Exchange Board of India
  • B. Reserve Bank of India
  • C. Ministry of Corporate Affairs
  • D. Insurance Regulatory and Development Authority of India

Q5. Under which one of the following sections of the Companies Act, 2013 is the mandatory Corporate Social Responsibility obligation on eligible companies laid down?

  • A. Section 135
  • B. Section 8
  • C. Section 149
  • D. Section 188

Q6. For registration of a Not-for-Profit Organisation on the Social Stock Exchange, which one of the following is a mandatory precondition?

  • A. Valid registration under Section 12A/12AA/12AB of the Income-tax Act, 1961
  • B. Incorporation exclusively as a Section 8 company under the Companies Act, 2013
  • C. Registration as a Foreign Portfolio Investor with SEBI
  • D. A memorandum of understanding solely with the Reserve Bank of India

Q7. For funds raised through ZCZP instruments on the Social Stock Exchange, the primary responsibility for project execution and evaluation rests with which one of the following?

  • A. The Not-for-Profit Organisation raising the funds
  • B. The Securities and Exchange Board of India
  • C. The CSR-contributing company
  • D. The Ministry of Corporate Affairs