CSR-mandated companies can use up to 10% of CSR funds
Big update: CSR-mandated companies can now use up to 10% of their CSR funds to support nonprofit organizations (NPOs) by investing in special financial instruments called zero-coupon, zero-principal instruments.
This move is meant to make things simpler for businesses and give NPOs a more transparent way to raise money for public-good projects.
SEBI to regulate CSR instruments
These amendments to the CSR Policy Rules, 2014, part of the Companies Act, 2013, are expected to help social enterprises get more funding.
The instruments will be regulated by SEBI for accountability.
Anshul Jain from PwC India summed it up nicely: "It helps in furtherance of a transparent and credible mode of funding CSR projects by the companies and enables social enterprises to access a wider pool of capital."