On 14 October 2026, the National Bank for Agriculture and Rural Development (NABARD) fully subscribed to a ₹4 crore Zero Coupon Zero Principal (ZCZP) issue by the National Skill Development Corporation (NSDC) on the National Stock Exchange’s Social Stock Exchange (SSE). The project aims to support overseas employment for 600 rural youth from Other Backward Classes (OBC) in Madhya Pradesh.
NABARD and NSDC
NABARD is India’s apex development bank for agriculture and rural development. It was established in 1982 under the National Bank for Agriculture and Rural Development Act, 1981. Its functions include rural credit, institutional development and support for rural infrastructure. NSDC is a not-for-profit public-private partnership established in 2008 under the Ministry of Skill Development and Entrepreneurship. It works to expand skill development and vocational training in India.
Social Stock Exchange
A Social Stock Exchange is a segment of a recognised stock exchange that enables eligible social enterprises to raise funds for social objectives. India’s SSE framework is regulated by the Securities and Exchange Board of India (SEBI). The National Stock Exchange and the Bombay Stock Exchange have established SSE segments. Eligible non-profit organisations can raise funds through instruments such as ZCZP securities, while eligible for-profit social enterprises can use permitted equity or debt instruments. The framework includes registration, disclosure and reporting requirements for participating organisations.
Zero Coupon Zero Principal Instruments
A ZCZP instrument carries no interest or other financial return for its subscriber and does not require repayment of principal. It is used by eligible non-profit organisations to raise funds for specified social projects through the SSE framework. The subscription window for this NSDC issue closed on 14 October 2026.
Important Facts for Exams
- NABARD was established in 1982 under the National Bank for Agriculture and Rural Development Act, 1981.
- NSDC was established in 2008 as a not-for-profit public-private partnership.
- SEBI regulates India’s Social Stock Exchange framework.
- A ZCZP instrument offers no financial return and carries no principal repayment obligation.
Outcome-based Financing
The project has an estimated outlay of ₹11.25 crore and provides specialised training, language instruction, certification and placement support for jobs in Japan and Germany. The Government of Madhya Pradesh is expected to contribute ₹5.60 crore after agreed employment outcomes are achieved, with the remaining funding proposed through beneficiary contributions. The financing framework links funding to outcomes such as verified overseas employment and sustained livelihood improvement rather than training completion alone.
