SEBI Proposes Transfer of Social Stock Exchange Capacity Building Fund to SSE-CBF Section 8 Company
Overview
The Securities and Exchange Board of India has put forward a significant administrative restructuring proposal concerning the Capacity Building Fund (CBF) that was originally set up to support the Social Stock Exchange (SSE) ecosystem in India. The regulator is seeking formal Board approval to transfer the outstanding fund balance, along with all administrative and management responsibilities, from the National Bank for Agriculture and Rural Development (NABARD) to a freshly incorporated Section 8 company — the Social Stock Exchange–Capacity Building Foundation (SSE-CBF) — which came into existence on 7 April 2026 and is housed at the National Stock Exchange (NSE).
This move marks a notable institutional evolution in the SSE framework, signalling a shift toward a more focused and professionally dedicated structure for capacity building, ecosystem development, and social impact facilitation.
Background: Genesis of the Capacity Building Fund
SEBI Board Approval and Initial Framework
The conceptual roots of the Capacity Building Fund trace back to 28 September 2021, when SEBI's Board formally approved the comprehensive framework for the Social Stock Exchange. A key pillar of that framework was the creation of a dedicated fund — the CBF — with an envisioned corpus of ₹100 crore. The fund was designed to reside with NABARD as an administrative entity, drawing contributions from stock exchanges, development finance institutions, and other relevant bodies.
Pursuant to this approval, SEBI formally communicated its consent to NABARD through a letter dated 19 January 2022, authorising the creation and operationalisation of the CBF as an administrative fund under NABARD's stewardship.
Initial Corpus and Contributors
The fund was seeded through equal contributions from four founding institutions:
- NABARD — ₹2.50 crore
- SIDBI (Small Industries Development Bank of India) — ₹2.50 crore
- NSE (National Stock Exchange) — ₹2.50 crore
- BSE (Bombay Stock Exchange) — ₹2.50 crore
This brought the initial contributed corpus to ₹10 crore, against the larger aspirational target of ₹100 crore.
Mandate and Activities of the CBF
The Capacity Building Fund was established with a clear developmental orientation. Its mandate encompassed:
- Awareness generation among potential stakeholders in the social sector
- Capacity building and training programs for Non-Profit Organisations (NPOs) and donors
- Outreach activities to promote understanding of the SSE framework
- Ecosystem development initiatives to strengthen the broader social capital market infrastructure
- One-time incentive disbursements to the initial cohort of NPOs that achieved listing on the SSE
Current Financial Position of the CBF
As of April 2026, NABARD provided a detailed fund status reflecting the following position: