CSR Rules Expanded for Social Stock Exchange

The CSR framework was expanded to allow spending on Zero Coupon Zero Principal instruments on the Social Stock Exchange.

The Ministry of Corporate Affairs expanded the CSR framework by adding subscription to Zero Coupon Zero Principal instruments on the Social Stock Exchange as an eligible CSR activity. The amendment allows CSR-mandated companies to support eligible not-for-profit organisations through a regulated market-based mechanism. Spending on such instruments cannot exceed 10 percent of a company’s total CSR expenditure for the financial year. This is important for questions on CSR, Companies Act 2013, social finance and capital market reforms.