{"id":105998,"date":"2026-05-31T12:45:46","date_gmt":"2026-05-31T07:15:46","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=105998"},"modified":"2026-06-02T11:13:03","modified_gmt":"2026-06-02T05:43:03","slug":"zero-coupon-zero-principal-instrument","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/zero-coupon-zero-principal-instrument\/","title":{"rendered":"Zero Coupon Zero Principal Instrument"},"content":{"rendered":"<h2><b>Zero Coupon Zero Principal Instrument Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Recently, the Ministry of Corporate Affairs (MCA) has allowed companies to deploy a portion of their Corporate Social Responsibility (CSR) spending through Zero Coupon Zero Principal (ZCZP) instruments. <\/span><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span> <span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h2><b>About Zero Coupon Zero Principal Instrument<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is a <\/span><b>financial instrument<\/b> <b>issued by a not-for-profit organization<\/b><span style=\"font-weight: 400;\"> which carries <\/span><b>neither interest payments nor repayment of principal.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These financial instruments allow <\/span><b>non-profit organizations<\/b><span style=\"font-weight: 400;\"> (NPOs) to <\/span><b>raise funds<\/b><span style=\"font-weight: 400;\"> that are listed on the <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/social-stock-exchange\/\" target=\"_blank\"><b>social stock exchange.<\/b><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This instrument effectively makes it a philanthropic funding mechanism routed through a market framework.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">ZCZP instruments from <\/span><b>NPOs are designated for specific projects<\/b><span style=\"font-weight: 400;\"> or activities and must be completed within the timeframe outlined in the fundraising documents.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This instrument shall be <\/span><b>issued in dematerialized form only.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It shall not be transferable from the original subscriber\/ holder till the expiry of the tenure of the said instrument.\u00a0<\/span><\/li>\n<\/ul>\n<h3><b>What is Corporate Social Responsibility?<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is a <\/span><b>business model<\/b><span style=\"font-weight: 400;\"> by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It helps both improve various aspects of society as well as promote a positive brand image of companies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CSR is mandatory for eligible companies under <\/span><b>Section 135 of the Companies Act, 2013<\/b><span style=\"font-weight: 400;\">. Companies must spend at <\/span><b>least 2% of average net profits<\/b><span style=\"font-weight: 400;\"> of the preceding three years on CSR activities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CSR activities are governed by <\/span><b>Schedule VII of the Companies Act.<\/b><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.thehindubusinessline.com\/economy\/india-inc-gets-a-new-csr-avenue-through-the-zero-coupon-zero-principal-instrument\/article71037644.ece\/amp\/\" target=\"_blank\" rel=\"nofollow noopener\">BL<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Zero Coupon Zero Principal Instrument is a fundraising tool issued by nonprofits that offers neither interest payments nor principal repayment. Read more about Zero Coupon Zero Principal Instrument, Latest News<\/p>\n","protected":false},"author":24,"featured_media":106178,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[21,22,23,7863],"class_list":{"0":"post-105998","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-prelims-pointers","9":"tag-upsc-current-affairs","10":"tag-upsc-prelims-current-affairs","11":"tag-zero-coupon-zero-principal-instrument","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/105998","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=105998"}],"version-history":[{"count":3,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/105998\/revisions"}],"predecessor-version":[{"id":106048,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/105998\/revisions\/106048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/106178"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=105998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=105998"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=105998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}