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Lotus Petal Foundation opens first SSE bond since CSR rule change
The first SSE bond since the Centre allowed CSR spending on ZCZP instruments opened Monday. Lotus Petal Foundation aims to raise ₹1 crore for 160 students.
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Gurugram-based non-profit Lotus Petal Foundation on Monday opened its ₹1 crore Zero Coupon Zero Principal bond issue on the BSE Social Stock Exchange. It is the first such issue after the government allowed eligible subscriptions to count toward corporate social responsibility obligations.
The issue closes July 31. About 12% of the size was subscribed on opening day. GTPL Hathway Ltd., a CSR partner of the foundation for seven years, committed to take up to 15% of the issue through its CSR allocation, founder and managing trustee Kushal Raj Chakravorty said.
The Centre recently permitted companies to deploy up to 10% of their annual CSR expenditure through subscriptions to eligible ZCZP instruments listed on social stock exchanges, opening a new fundraising channel for registered non-profits.