MCA Enables CSR Spending Through Social Stock Exchange

The Ministry of Corporate Affairs (MCA) has amended the CSR Rules to allow eligible companies to invest up to 10% of their annual CSR obligation through Zero Coupon Zero Principal (ZCZP) Instruments issued by eligible Not-for-Profit Organisations (NPOs) listed on the Social Stock Exchange (SSE). Effective from 27 May 2026, the amendment promotes greater transparency, accountability, and regulated funding for social initiatives while enabling companies to align their CSR efforts with broader ESG objectives. Companies should evaluate this new mechanism and strengthen their due diligence processes before adopting this approach.