The MCA has amended Schedule VII of the Companies Act to include investments in zero coupon zero principal instruments under CSR, further diversifying permissible CSR activities.
MCA Adds Social Stock Exchange Instruments to CSR List
In a significant amendment to Schedule VII of the Companies Act, the Ministry of Corporate Affairs has included subscriptions to zero coupon zero principal instruments on the Social Stock Exchange in the list of acceptable CSR activities. This move aims to enhance corporate contributions to social welfare initiatives.
This addition not only diversifies the avenues for CSR expenditures but also underscores the government's intent to promote transparency and efficacy in social investments by corporate entities. It aligns with global trends towards leveraging market mechanisms for social good.
Legal professionals should note that this change enhances the framework within which companies can structure their CSR efforts, providing them with more dynamic investment options tied to societal benefits.
