Press “Play with voiceover”. The voice uses your device’s built-in speech, so it may sound different on different phones and browsers. Captions are always shown.
What is a ZCZP instrument?
ZCZP stands for Zero Coupon Zero Principal. In simple terms, it is a regulated instrument through which an eligible not-for-profit organisation can raise money for social projects on the Social Stock Exchange. It is not a normal interest-paying investment: the instrument does not promise interest or repayment of principal like a conventional bond.
What changed on 27 May 2026?
The Ministry of Corporate Affairs issued the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026 (G.S.R. 415(E)) and a related amendment to Schedule VII through G.S.R. 416(E). The changes expressly recognise subscription to eligible ZCZP instruments on the Social Stock Exchange as a CSR route, subject to the legal conditions.
The 10% limit — with an example
A company cannot spend more than 10% of its total CSR expenditure for that financial year through ZCZP instruments under this route.
Key conditions to remember
- Eligible issuer: The instrument must be issued by an eligible not-for-profit organisation registered with the Social Stock Exchange segment of a recognised stock exchange and comply with applicable SEBI regulations.
- Annual cap: ZCZP expenditure must not exceed 10% of the company's total CSR expenditure for that financial year.
- Impact assessment: A subscribing company is exempted from undertaking impact assessment of a project funded through such an instrument under the new rule.
- Project period: The issuing nonprofit must undertake a project with a duration not exceeding three succeeding financial years from issue of the instrument.
- Unspent amount: When listing of the instrument terminates, the issuing organisation must transfer any unspent amount to a fund included in Schedule VII and submit a compliance report to SEBI.
Why does this matter?
For companies, it creates another regulated way to direct a limited portion of CSR spending towards eligible social projects. For nonprofits, it can provide a structured fundraising route through the Social Stock Exchange. It does not mean every nonprofit or every ZCZP-like instrument automatically qualifies as CSR.
हिन्दी में आसान समझ
ZCZP का मतलब है Zero Coupon Zero Principal. आसान भाषा में, यह एक ऐसा विनियमित माध्यम है जिसके जरिए Social Stock Exchange पर पंजीकृत पात्र गैर-लाभकारी संस्था सामाजिक परियोजनाओं के लिए धन जुटा सकती है।
- कंपनी अपने उस वित्तीय वर्ष के कुल CSR खर्च का अधिकतम 10% पात्र ZCZP इंस्ट्रूमेंट में लगा सकती है।
- उदाहरण: कुल CSR खर्च ₹1 करोड़ है, तो इस माध्यम से अधिकतम ₹10 लाख खर्च किए जा सकते हैं।
- इंस्ट्रूमेंट जारी करने वाली संस्था पात्र और Social Stock Exchange पर पंजीकृत होनी चाहिए तथा लागू SEBI नियमों का पालन करना होगा।
- परियोजना की अवधि जारी होने के बाद अधिकतम तीन आगामी वित्तीय वर्षों तक हो सकती है।
- लिस्टिंग समाप्त होने पर बची हुई राशि Schedule VII में शामिल किसी फंड में ट्रांसफर करनी होगी और SEBI को अनुपालन रिपोर्ट देनी होगी।
इसलिए, यह हर संस्था के लिए स्वतः उपलब्ध CSR विकल्प नहीं है। पात्रता और सभी शर्तों की जाँच जरूरी है।
Practical takeaway
Before using this route, a company should confirm the issuer's eligibility and Social Stock Exchange registration, check SEBI requirements, calculate the 10% cap, document its CSR decision, and review the applicable CSR Rules and Schedule VII wording.