SEBI has proposed transferring the funds, administration, and management of the Capacity Building Fund (CBF) established for the Social Stock Exchange (SSE) from NABARD to the newly incorporated Section 8 company, Social Stock Exchange–Capacity Building Foundation (SSE-CBF). The CBF, approved by SEBI in 2021 with an intended corpus of ₹100 crore, was initially funded with ₹10 crore by NABARD, SIDBI, NSE, and BSE to support awareness, training, capacity building, and ecosystem development for the SSE. As of April 2026, the fund held nearly ₹9.98 crore after accounting for sanctioned and disbursed amounts. Following approval by the Finance Minister and recommendations of the Department of Economic Affairs, SSE-CBF was incorporated on 7 April 2026 as a dedicated institution to manage capacity building, stakeholder training, project monitoring, and social impact assessment. SEBI proposes approving NABARD’s request to transfer the balance funds and management responsibilities to SSE-CBF without altering the existing regulatory framework.
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Securities and Exchange Board of India
Dated: 19th June 2026
Transfer of funds, administration & management of Capacity Building Fund (CBF) to Section 8 Company in respect of Social Stock Exchange
1. Objective
1.1. This memorandum seeks approval of the Board for transfer of funds, administration & management of Capacity Building Fund (CBF) to Section 8 Company incorporated for undertaking capacity building and ecosystem development activities relating to Social Stock Exchange(SSE)
2. Background
2.1. The board in its meeting dated September 28, 2021, approved the framework for Social Stock Exchange (SSE), which, inter alia, contained the proposal for setting up of CBF of ₹ 100 crores, to be housed in National Bank for Agriculture and Rural Development (NABARD) as administrative fund with contribution from Exchanges, NABARD, Small Industries Development Bank of India (SIDBI) and other developmental agencies.
2.2. SEBI vide its letter dated January 19, 2022 conveyed its approval to NABARD to create CBF for the SSE, as an administrative fund under NABARD.
2.3. Initially NABARD, SIDBI, National Stock Exchange (NSE) and Bombay Stock Exchange(BSE), each contributed ₹ 2.50 crore.
2.4. CBF was established to support awareness generation, capacity building, training, outreach and ecosystem development activities relating to the SSE framework. The activities carried out by CBF included capacity building programs for NPOs and donors, disbursement of one-time incentive to first few listed NPOs, etc.
2.5. Presently, the status of funds lying in CBF (as provided by NABARD) is mentioned as under
| Sl. No. | Particulars | Amount |
| A | Contribution received | ₹ 10,00,00,000 |
| B | Interest accrued on un-utilized fund | ₹ 76,21,160.41 |
| C | Total amount credited to CBF (A+B) | ₹ 10,76,21,160.41 |
| D | Total amount sanctioned | ₹ 95,47,536 |
| E | Total amount disbursed from CBF | ₹ 77,71,564 |
| F | Balance commitment for Sanctioned
projects(D-E) |
₹ 17,75,962 |
| G | Balance of CBF(C-E) | ₹ 9,98,49,596.41 |
3. Issue under Consideration
3.1. Department of Economic Affairs (DEA) vide letter dated July 11, 2025, informed that Hon`ble Finance Minister has approved the formation of a Section 8 Company as a dedicated agency for developing the Social Stock Exchange ecosystem.
3.2. Subsequently, DEA in its meeting dated October 10, 2025 has outlined the functions which shall be entrusted to the proposed Section 8 Company which, inter alia, included provision of transfer of management and utilization of the CBF to the company to ensure coherence and focused implementation. In this regard, Section 8 Company namely Social Stock Exchange-Capacity Building Foundation (SSE-CBF) has been incorporated on April 7, 2026 which is housed at NSE.
3.3. NABARD vide its letter dated April 24, 2026, has sought approval of SEBI for transferring of funds lying in CBF and the administration and management of CBF to newly formed SSE-CBF.
3.4. It may be noted that the CBF was housed at NABARD with the approval of the Board. Now that NABARD has sought specific approval from SEBI for shifting the fund to the newly formed SSE- CBF the approval of the Board is being sought for the same.
3.5. The objective of SSE-CBF would be to undertake awareness and capacity building exercises for all the relevant stakeholders. SSE-CBF would undertake the necessary developmental activities relating to administration, training/capacity building/handholding, social impact assessment and monitoring of completion of projects, etc. It would comprise of dedicated professionals who have expertise in the area of social projects and fundraising including the officials from NABARD, SIDBI, NSE & BSE who shall be deputed to the SSE-CBF.
3.6. SSE-CBF, being a development and promotional institution, would continue not to fall under the supervision of SEBI.
3.7. It is to be mentioned that the overall objective of SSE-CBF are the same as the activities carried out by the CBF, SEBI may not have any objection in permitting transferring the utilization of outstanding funds, administration and management of the CBF from NABARD to SSE-CBF. There is no further change required in the regulatory framework for the SSE.
4. Proposal:
4.1. In view of the above, it is proposed that SEBI may grant approval to NABARD to transfer the balance amount, administration and management of the CBF to the SSE-CBF, which shall thereafter undertake all activities currently supported through the CBF.
5. Proposal to the Board:
5.1. The Board is requested to consider and approve the proposal mentioned under para 4.1 which would require issuance of necessary direction to NABARD.
