MCA Amends Schedule VII to Include Social Stock Exchange Investments:

The Ministry of Corporate Affairs has amended Schedule VII of the Companies Act, 2013, through Notification G.S.R. 416(E) dated 27 May 2026. The amendment inserts a new CSR activity under Schedule VII, permitting companies to treat “subscription to zero-coupon, zero-principal instruments on the Social Stock Exchange” as an eligible Corporate Social Responsibility (CSR) expenditure.

By this amendment, a new item (xiii) has been inserted in Schedule VII specifically recognising investment in zero-coupon, zero-principal instruments issued on the Social Stock Exchange as a permissible CSR activity under the Companies Act, 2013.

This amendment complements the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2026, notified vide G.S.R. 415(E), which introduced Rule 4A permitting companies to undertake CSR activities through such instruments issued by eligible Not for Profit Organisations (NPOs) registered on the Social Stock Exchange.

The notification has come into force from the date of its publication in the Official Gazette, i.e., 27 May 2026.