The Finance Ministry has recently declared zero coupon zero principal instruments ZCZP as securities...........

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The Finance Ministry has recently declared zero coupon zero principal instruments (ZCZP) as securities. What can be the major possible implication of this decision?

Stability in money market

Allow corporates to utilise their fund marked for social responsibility

Increase in Foreign Direct Investment

Reduction of Participatory notes

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Explanation:

Zero Coupon Zero Principal instruments (ZCZP)

This will help many organizations including corporates to utilize their fund marked for social responsibility and also help non-profit organizations to get funds in a more transparent manner.
In simple words, neither any interest is paid nor principal is repaid under ZCZP.
Zero Coupon-Zero Principal instrument means an instrument issued by a not-for-profit organization that shall be registered with the social stock exchange (SSE) segment of a recognized stock exchange in accordance with the Securities and Exchange Board of India.
The new notification is a follow-up to the announcement in the FY20 Budget.
Finance Minister has quoted "It is time to take our capital markets closer to the masses and meet various social welfare objectives related to inclusive growth and financial inclusion".

Hence option 2nd is correct.

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