The National Bank for Agriculture and Rural Development (NABARD) has subscribed ₹4 crore to the National Skill Development Corporation’s (NSDC) Zero Coupon Zero Principal (ZCZP) issue on the NSE’s Social Stock Exchange. The money will fund an overseas skilling and employment program for 600 rural youth from Other Backward Classes (OBC) communities in Madhya Pradesh, with jobs in Japan and Germany as the target.
How the Social Stock Exchange issue works
A ZCZP instrument carries no interest and requires no repayment of principal for the subscriber, so the money works as a funding channel, not an investment. The issue is listed on the NSE’s Social Stock Exchange platform. NABARD’s subscription is described as an effort to support funding models that link money to measurable development outcomes.
Who the program is for
The program targets 600 rural youth from OBC communities in Madhya Pradesh, and NSDC is implementing it in partnership with the Government of Madhya Pradesh. Other coverage of the launch says 300 participants are to be prepared for jobs in Japan and 300 for Germany.
What participants will get
The program aims to prepare participants through language training, domain-specific skill development, cultural orientation and certification. They will also receive help with overseas placement, documentation and deployment.
Funding tied to outcomes
The program combines Social Stock Exchange funding, outcome-linked public financing and beneficiary participation. Other coverage puts the estimated outlay at ₹11.25 crore. The Madhya Pradesh government is expected to provide ₹5.60 crore once agreed employment outcomes are achieved, with the remainder coming from beneficiary contributions.
Focus on verified results
Unlike conventional skilling programs that mainly measure training completion, this one focuses on verified employment outcomes, including actual overseas deployment, sustained employment and improved livelihoods. It plans beneficiary-level monitoring, periodic reporting and independent outcome verification to track progress.
Why it matters for social financing
The listing marks a development in how India’s Social Stock Exchange is used to finance social initiatives. The program is expected to show how the exchange can fund rural skilling, employability and livelihood work. If it succeeds, the model could inform outcome-based financing in areas such as rural entrepreneurship, climate resilience, women-led development and social inclusion. It could also draw more philanthropic institutions, development agencies, corporates and investors into financing social projects.
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