Social finance is considered to be the mainstream problem in India for goods and services which targets the disadvantaged and poorer sections of the society. It is proposed by Indian finance ministry in the recent budget speech to create a separate system to for fund raising to help the disadvantaged people of society. Social stock exchange is a platform on which social enterprises, volunteer groups and welfare organizations will be listed so that they can raise capital. The proposal has attracted much attention, and social entrepreneurs, among others, have said that the move can have a revolutionary effect on how they tap investors for capital. With social finance, impact investors put their capital behind enterprises that profitably cater to underserved populations by expanding access to critical goods and services, such as healthcare, affordable housing, credit, and quality employment. However, before one can understand what a Social Stock Exchange is, two terms ‘social enterprises’ and ‘impact investment’ need to be understood. A social enterprise is a revenue-generating business, but its primary objective is to achieve a social objective. It does not ignore profit but its primary goal is social service. While pursuing social goals, the social enterprise does not do away with profit because it ensures the sustainability of the entity. The cornerstone of the philosophy is that even social enterprise can be highly profitable. Impact investment is the investment made into businesses with the aim to make a noticeable social, economic and environmental impact. At the same time, it generates a wide range of returns, ranging from profit to publicity to creating awareness, to educating masses etc.