About Zero Coupon Zero Principal Instrument:
- It is a financial instrument issued by a not-for-profit organization which carries neither interest payments nor repayment of principal.
- These financial instruments allow non-profit organizations (NPOs) to raise funds that are listed on the social stock exchange.
- This instrument effectively making it a philanthropic funding mechanism routed through a market framework.
- ZCZP instruments from NPOs are designated for specific projects or activities and must be completed within the timeframe outlined in the fundraising documents.
- This instrument shall be issued in dematerialized form only.
- It shall not be transferable from the original subscriber/ holder till the expiry of the tenure of the said instrument.
What is Corporate Social Responsibility?
- It is a business model by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment.
- It helps both improve various aspects of society as well as promote a positive brand image of companies.
- CSR is mandatory for eligible companies under Section 135 of the Companies Act, 2013. Companies must spend at least 2% of average net profits of the preceding three years to CSR activities.
- CSR activities are governed by Schedule VII of the Companies Act.
