Zero Coupon Zero Principal Instrument

Recently, the Ministry of Corporate Affairs (MCA) facilitated Corporate Social Responsibility (CSR) through Zero Coupon Zero Principal (ZCZP) Instrument by expanding the scope of Schedule VII of the Companies Act, 2013.

What is Zero Coupon Zero Principal (ZCZP) Instrument?

  • They are financial instruments or securities issued by not-for-profit organisations (NPOs) registered on the Social Stock Exchange segment of a recognised stock exchange in accordance with regulations framed by the Securities and Exchange Board of India (SEBI).

Features

Nature

  • These instruments do not carry any interest payments or repayment of principal.
  • They function as a philanthropic funding mechanism that ....
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