MCA Expands CSR Eligibility with Social Stock Exchange Instruments

Expansion of CSR Activities

The Ministry of Corporate Affairs (MCA) has recently expanded the scope of Corporate Social Responsibility (CSR) by recognizing subscriptions to Zero Coupon Zero Principal Instruments listed on the Social Stock Exchange as valid CSR activities. This significant amendment allows companies to invest in innovative financial instruments aimed at social welfare.

This strategic move creates a new channel for CSR funding, facilitating greater contributions to non-profit organizations engaged in public welfare initiatives. The inclusion of these instruments in CSR eligibility is expected to foster a more active participation of corporate entities in social development projects.

Advisors and corporate practitioners should consider this amendment and guide their clients in leveraging these new CSR investment avenues effectively for enhanced social impact.