Rural Health Impact Foundation (NPO) plans to raise funds through the Social Stock Exchange (SSE). Part A: NPO (ZCZP Instruments) Project cost: ₹3 crore Funds raised via Zero Coupon Zero Principal (ZCZP): ₹2.4 crore Mini

Answer 4(b) NPO Analysis (i) Minimum Subscription Minimum Subscription = 75% × ₹3 crore = ₹2.25 crore Funds raised via Zero Coupon Zero Principal (ZCZP) = ₹2.4 crore Condition satisfied and NPO issue is successful. (ii) Administrative Overheads Check Administrative expenses = ₹50 lakh Funds raised via ZCZP = ₹2.4 crore Administrative overhead in % = (50/240) × 100 = 20.83% Permissible limit exceeds (normally capped around 5% considering CSR provisions - Although no such restrictions are there in Social Stock Exchange framework as it can be incurred based on the disclosure made in offer document) Fund Utilisation Funds raised via ZCZP = ₹2.4 crore Actual project spending = ₹1.6 crore Unutilized Funds = ₹0.8 crore Transfer of Unutilized Funds Unutilized Funds transferred after 8 months to a separate account (Unutilized amount shall be transferred within 30 days from end of financial year to a separate bank account and then shall be spent over a period of 3 years. Further, if it remain Unutilized, it should be transferred within 6 months to Unspent CSR/SSE account, if not utilized for the purpose) (iii) Non-compliance identified Unutilized amount shall be transferred within 30 days from end of financial year to a separate bank account considering CSR provisions. Since there is no specific timeline for the Social Stock Exchange, it may require to be transferred to a separate Bank account immediately. However, the funds are transferred after 8 months which is a non-compliance. SSE framework ensures transparency, accountability, and genuine social impact, and non-compliance can lead to rejection, penalties, or delisting.