Subscription to ZCZP instruments recognized as CSR activity
Amendment to Schedule VII of the Companies Act, 2013
Subscription to Social Stock Exchange ZCZP Instruments Recognized as Eligible CSR Activity
In exercise of the powers conferred under section 467(1) of the Companies Act, 2013, the Central Government has amended Schedule VII of the Act.
Under this amendment, a new entry has been introduced after the existing item (xii) in Schedule VII. The newly inserted item recognizes subscription to Zero Coupon Zero Principal (ZCZP) Instruments listed on a Social Stock Exchange as an eligible activity for Corporate Social Responsibility (CSR) expenditure.
Accordingly, companies may utilize their CSR funds for subscribing to such instruments issued through the Social Stock Exchange framework, subject to applicable laws and regulations.
The amendment becomes effective from the date of its publication in the Official Gazette.
