Sebi bats for tax benefits to cos investing in ‘zero coupon zero principal bonds’


NEW DELHI: To encourage social sector spending, markets regulator Sebi has advised that the federal government ought to permit tax benefits to firms investing in zero coupon zero principal bonds issued by not-for-profit organisations listed on the social inventory alternate. Talking to reporters right here on Friday, Sebi’s Whole Time Member Kamlesh Chandra Varshney stated the regulator has already despatched a proposal to the finance ministry and is hopeful of getting the approval.
“We have given the proposal to the government that corporate entities who invest in ZCZPs should get the benefits of CSR (Corporate Social Responsibility). We are hopeful that the government will soon approve the proposal,” Varshney stated at an occasion organised by NSE on SSE right here.
Moreover, the CBDT has already clarified that buyers or donors shopping for such bonds will get the tax benefits underneath part 8OG of Income Tax guidelines, he added.
These measures can be pertinent in direction of inclusive progress of the social sector and can assist construct belief and broaden the donor base for the organisations, he stated.
The ‘zero-coupon, zero-principal’ are devices for donating cash to non-profit organizations listed on the SSE.
The Social Stock Exchange (SSE) is a novel idea in India and such a bourse is supposed to serve non-public and non-profit sector suppliers by channelling larger capital to them. The thought was floated by Finance Minister Nirmala Sitharaman in her Union Budget 2019-20 speech.
SSE is a separate phase of the prevailing inventory exchanges that convey collectively social enterprises and donors, facilitates funding and progress of social enterprises and permits mechanisms to guarantee sturdy requirements of social impression and monetary reporting.
At current, 8-9 NPOs are listed on the SSE with a collective fundraising of shut to Rs 11 crore and now one NPO is quickly going to elevate Rs 14 crore alone by way of the platform, NSE MD and CEO Ashishkumar Chauhan stated right here.
“We believe that SSE has a great future ahead in India as the government is committed to supporting the platform, as this will help in the democratisation of investments,” he stated.
Moreover, Sebi has been taking measures to widen the participation of subscribers on the social inventory alternate. In November, the regulator decreased the problem measurement of ZCZP from Rs 1 crore to Rs 50 lakh. It has additionally decreased the minimal software measurement for donors to Rs 10,000 from Rs 2 lakh.
Last month, Sebi requested social enterprises, which have registered or mobilised funds by way of SSE, to submit an ‘annual impression report’ for the monetary 12 months 2023-24 to such bourse by October-end.
The annual impression report to SSE captures the qualitative and quantitative features of the social impression generated by the social enterprise.

Nilesh Desai
Nilesh Desai
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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