The MCA has amended Schedule VII of the Companies Act to include Zero Coupon Zero Principal Instruments in CSR, broadening avenues for social contribution.
Amendment to CSR Rules
The Ministry of Corporate Affairs has amended Schedule VII of the Companies Act to add subscriptions to Zero Coupon Zero Principal instruments on the Social Stock Exchange as part of CSR initiatives. This regulatory update signifies a broadened interpretation of eligible CSR activities, allowing company investments in listed social instruments.
This change is expected to enhance the funding landscape for social sector entities and encourage more corporations to align their business operations with social responsibility goals. By integrating these new instruments into the CSR framework, companies can explore diverse methods of contributing to societal development.
Practitioners are advised to remain updated on these changes to ensure compliance and to inform their clients about the potential benefits of leveraging these instruments for effective CSR strategies.
Citations
- MCA Amendment (2026)
