The government has not carried out any assessment on the extent to which the newly introduced “Subscription to zero coupon zero principal (ZCZP) instruments on Social Stock Exchange” is likely to boost the inflow of institutional capital into the social sector, Parliament was informed on Monday.

In a written reply to the Lok Sabha, Minister of State for Corporate Affairs Harsh Malhotra said, “No such assessment has been conducted by the ministry.”

The Ministry of Corporate Affairs, through a notification dated May 27, 2026, widened the ambit of Schedule VII of the Companies Act, 2013, by introducing a new item — “Subscription to zero coupon zero principal instruments on Social Stock Exchange” — as an eligible Corporate Social Responsibility (CSR) activity.

As per the amendment, a CSR-mandated company cannot subscribe to ZCZP instruments for more than 10 per cent of its total CSR expenditure for that financial year.

Malhotra said the move is intended to ease compliance for companies while helping not-for-profit organisations raise funds for public welfare projects “in a transparent and regulated manner.”

The ZCZP instrument, listed on the Social Stock Exchange, allows companies to channel CSR funds to eligible non-profits without expecting financial returns, aiming to formalise and bring greater transparency to social sector financing.