ZCZP: A Complete Guide for CSR Donors in India
What Is ZCZP? Zero Coupon Zero Principal (ZCZP) is a fundraising instrument that a not-for-profit organisation (NPO) can issue after registering on India's Social Stock Exchange (SSE) . As the name suggests, it carries no coupon (interest) and no principal repayment — the subscriber does not get their money back, and does not earn a return on it. Legally, ZCZP is recognised as a "security" under the Securities Contracts (Regulation) Act, 1956, but economically it functions as a grant: the money raised is treated as a donation, and the person or company subscribing to it is treated as a donor, not an investor. For a CSR donor, that distinction matters. A ZCZP is not a bond in the commercial sense — it is a grant that has been wrapped in exchange-level discipline: listing requirements, disclosure obligations, and independent verification by the stock exchange. That combination is what makes it relevant to companies funding social projects under Section 135 of the Compani...