In a major step towards strengthening India's social impact financing ecosystem, the National Stock Exchange (NSE) has announced that it will route 10% of its annual Corporate Social Responsibility (CSR) spending through the Social Stock Exchange (SSE). The move positions NSE among the first major institutions to commit a portion of its CSR budget through the regulated social impact platform.

Key Highlights

• NSE to deploy 10% of its annual CSR corpus through the Social Stock Exchange platform.
• Regulatory changes now allow corporates to fund social projects via listed ZCZP instruments.

The decision comes after the Ministry of Corporate Affairs (MCA) recently amended CSR rules to allow companies to undertake CSR expenditure by subscribing to Zero Coupon Zero Principal (ZCZP) instruments listed on Social Stock Exchanges. The regulatory notifications issued on May 27 have enabled corporates to channel CSR funds through the SSE framework.

NSE stated that its CSR Committee had approved the proposal in principle in March 2026, subject to regulatory clearance. Following the government's notification, the exchange has now operationalised the initiative.

Regulatory Change Opens New Avenue for CSR Spending

The latest policy change is expected to create a more structured and transparent mechanism for deploying CSR funds. By allowing investments through listed social impact instruments, the framework seeks to connect corporate CSR budgets directly with verified social sector projects.

NSE Chairman Injeti Srinivas welcomed the government's decision  and stated, "The new framework would improve transparency, accountability, and visibility of CSR spending. Routing CSR funds through the Social Stock Exchange would help ensure that resources are directed toward credible and impactful social initiatives while enabling companies to monitor outcomes more effectively."

The exchange also expressed hope that other large corporate contributors would follow suit and allocate a portion of their CSR spending through the SSE platform, helping scale up social impact financing across the country.

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NSE-SSE Emerges as Key Platform for Social Impact Funding

The Social Stock Exchange framework was introduced by the Securities and Exchange Board of India (Sebi) to create a regulated fundraising platform for non-profit organisations (NPOs) and social enterprises. The NSE Social Stock Exchange was launched in February 2023 and has since played a pioneering role in facilitating social impact fundraising.

According to National Stock Exchange, the platform has facilitated all Social Stock Exchange fundraising issuances in India since its launch. A total of 16 projects, including two joint listings, have collectively mobilised more than Rs 44.5 crore.

The funded projects span multiple sectors, including healthcare, education, women empowerment, climate action, poverty alleviation, skilling, and sustainable livelihoods. These initiatives demonstrate the growing potential of market-linked mechanisms in addressing critical social and developmental challenges.

Boost for India's Social Impact Investing Ecosystem

The government's decision to expand permissible CSR activities through the SSE route is being viewed as a landmark reform for India's impact investing landscape. The framework is expected to unlock a new source of funding for non-profit organisations while enhancing the visibility of social projects.

With National Stock Exchange leading by example through its own CSR commitment, the exchange is positioning itself as an early adopter of the Social Stock Exchange model. Industry experts believe the move could encourage broader participation from corporate India, helping create a more robust and sustainable ecosystem for social impact financing and development-oriented investments.