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ZCZP Instruments Allowed as CSR Spend on Social Stock Exchanges

3 June 20261 min read
ECONOMYZCZP InstrumentsAllowed as CSRSpend on SocialStock Exchanges3 June 2026safalsetu.com

Why in the news

The corporate affairs ministry widened the list of ways companies can meet their CSR obligations by recognising ZCZP instruments traded on Social Stock Exchanges.

Key facts

  • Authority: Ministry of Corporate Affairs (MCA), through an amendment to the CSR framework of the Companies Act.
  • New eligible activity: buying Zero Coupon Zero Principal (ZCZP) Instruments listed on Social Stock Exchanges (SSEs).
  • Effect: firms can route CSR money to eligible not-for-profit organisations via regulated financial instruments.
  • Limit: ZCZP route is capped at 10% of annual CSR spending.
FeatureDetail
InstrumentZero Coupon Zero Principal
Where listedSocial Stock Exchanges
BeneficiariesEligible not-for-profit organisations
Ceiling10% of annual CSR expenditure

Exam angle

  • Ministry in charge: MCA.
  • Abbreviation to learn: ZCZP and SSE.
  • Number to remember: 10% cap.

Test yourself

1. Which ministry amended the CSR framework to include ZCZP instruments listed on Social Stock Exchanges?

The notes state MCA made the amendment under the Companies Act CSR framework.

2. What is the cap on CSR spending through ZCZP instruments, as a share of annual CSR expenditure?

The ZCZP route is capped at 10% of annual CSR spend.

3. In the CSR context, what does ZCZP stand for?

ZCZP means Zero Coupon Zero Principal instruments.

This topic is part of Daily Current Affairs 2 & 3 June 2026 (21 topics).

All topics of the dayDay quizJune 2026

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