New Delhi, October 14, 2026: The National Bank for Agriculture and Rural Development (NABARD) has fully subscribed ₹4 crore to the maiden Zero Coupon Zero Principal (ZCZP) issue of the National Skill Development Corporation (NSDC)on the Social Stock Exchange (SSE) platform of the National Stock Exchange (NSE), marking an important milestone in the evolution of outcome-based social finance in India. The project, with an estimated outlay of ₹11.25 crore, seeks to create sustainable overseasemployment opportunities for 600 rural youth belonging to Other Backward Classes (OBC) in Madhya Pradesh.
The initiative is being implemented by NSDC in collaboration with the Government of Madhya Pradesh and is structured around an innovative financing framework that aligns funding with measurable social outcomes. Under the model, NABARD isparticipating through subscription to the ZCZP issue, while the Government of Madhya Pradesh is expected to provide outcome-linked funding of ₹5.60 crore upon achievement of agreed employment outcomes. The balance funding is proposed to come through beneficiarycontributions.
The programme aims to equip rural youth with internationally relevant skills required for employment opportunities in Japan and Germany. Beneficiaries will receive language training, technical skill development, certification, culturalorientation and end-to-end support for overseas placement, including documentation and deployment assistance. The initiative seeks to create durable livelihood opportunities and improve income prospects for rural households through access to global labourmarkets.
A distinctive feature of the project is its emphasis on outcomes rather than activities. The programme is designed to focus on verified overseas employment and sustained livelihood enhancement rather than merely training completion. Thisapproach represents an important shift towards evidence-based development financing where social impact remains central to programme design and implementation.
The transaction also demonstrates the growing potential of the Social Stock Exchange as a platform for mobilising resources towards measurable developmental outcomes. Established under the regulatory framework of the Securities and ExchangeBoard of India (SEBI), the SSE seeks to facilitate greater participation of institutions, philanthropies, foundations, corporates and other stakeholders in financing social initiatives through transparent and accountable mechanisms. The ZCZP instrument isone such innovation that enables funding of social projects without creating repayment obligations for implementing entities.
