The Ministry of Corporate Affairs (MCA), through a Gazette Notification dated 27 May 2026, has amended Schedule VII of the Companies Act, 2013 to include “(xiii) Subscription to zero coupon zero principal instruments on Social Stock Exchange” as an eligible CSR activity. This amendment formally enables companies to channel CSR contributions (up to 10% of the total CSR expenditure for the financial year) to Not-For-Profit Organisations (NPOs) registered on the Social Stock Exchange through Zero Coupon Zero Principal (ZCZP) instruments.
The development is expected to significantly strengthen the credibility, transparency, and scale of social financing in India by enabling corporates to support impact-led organisations through a regulated and disclosure-driven platform.
The Social Stock Exchange was envisioned by our Hon’ble Finance Minister Smt. Nirmala Sitharaman of taking “the capital markets closer to the masses and meet various social welfare objectives related to inclusive growth and financial inclusion”, during the budget session of 2019 – a vision that is no longer a distant dream but a tangible reality.
With this inclusion, corporates can now integrate Social Stock Exchange participation within their CSR strategies, unlocking new opportunities for structured giving, impact measurement, accountability, and long-term engagement.
The amendment is expected to benefit both corporates and the social sector by:
- Expanding access to funding for credible and verified NPOs
- Strengthening transparency, governance, and impact disclosure standards
- Encouraging outcome-driven philanthropy and structured social financing
- Building greater trust and accountability within the social impact ecosystem
Shri Sriram Krishnan, Chief Business Development Officer, NSE said: “This is a significant step for India’s social sector, enabling corporates to deploy CSR funding through a transparent, regulated and impact-driven platform leading to strengthening trust, accountability and access to capital for social enterprises.”
The MCA notification comes into force with immediate effect from the date of publication in the Official Gazette.