Zero Coupon Zero Principal (ZCZP)

March 24, 2025

The Securities and Exchange Board of India (SEBI) reduced the minimum investment for Zero Coupon Zero Principal (ZCZP) instruments on the Social Stock Exchange (SSE) from ₹10,000 to ₹1,000 to boost retail participation in funding non-profit organizations (NPOs).
Reduction in Investment Limit: Minimum investment size lowered to ₹1,000 to increase participation from small-scale investors.
About ZCZP Instruments: Donation-based tools for NPO funding with no repayment of principal or interest, focusing on social impact causes.
Purpose: To enhance funding in sectors like education and healthcare, strengthening India’s social impact investment ecosystem.
Implementation: The change is effective immediately, revising SEBI’s earlier guidelines issued in 2022 and 2023.