With reference to the Social Stock Exchange (SSE) in India, consider the following statements: 1. Zero Coupon Zero Principal (ZCZP) instruments are issued by For-Profit Social Enterprises (FPEs) to raise traditional equity capital. 2. The SSE framework allows both Not-for-Profit Organizations (NPOs) and For-Profit Social Enterprises (FPEs) to participate. Which of the statements given above is/are correct?

Question

Accepted Answer

B) 2 only — Statement 1 is incorrect because Zero Coupon Zero Principal (ZCZP) instruments are uniquely issued by Not-for-Profit Organizations (NPOs) and act essentially as donations, returning neither principal nor interest. Statement 2 is correct as the SSE framework regulates both NPOs and FPEs.

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