The proposed revival of the Calcutta Stock Exchange (CSE) has gained momentum following an announcement by the West Bengal government, which seeks to restore Kolkata's position as a prominent financial hub. During the state budget presentation on June 22, Finance Minister Swapan Dasgupta declared the government's intent to support the century-old bourse's return.
Dasgupta highlighted several advantages to the Calcutta Stock Exchange revival, including easier access to capital for Eastern India, reduced listing and trading costs, and the creation of new employment opportunities. Following this declaration, the CSE has formally requested the Securities and Exchange Board of India (Sebi) to pause its ongoing voluntary exit process.
Sebi Guidance Crucial for CSE's Future
Deepankar Bose, Public Interest Director at CSE, confirmed that the exchange has asked Sebi to keep its exit application on hold. The future course of action for the bourse will be determined only after receiving clear guidance from the market regulator. The CSE had initially applied for a voluntary exit from stock exchange operations in February 2025, after years of regulatory disputes with Sebi, which is yet to issue a final order on the application.
Experts Flag Significant Challenges
Despite the state government's optimism, market experts caution that the Calcutta Stock Exchange revival faces substantial regulatory and business-related obstacles. Arun Kejriwal, a veteran market analyst, noted that India's stock exchange ecosystem is now heavily concentrated around major platforms like the BSE and NSE, with many regional companies having already migrated to these larger exchanges.
Kejriwal emphasized that any meaningful return of the CSE would necessitate greater participation from its regional members and their effective integration into the broader market. Ravi Singh, Chief Research Officer at Master Capital Services, echoed these concerns, pointing to regulatory hurdles and liquidity as primary challenges.
Singh suggested that while government backing is a positive, the CSE would likely need to carve out a niche business, such as focusing on Small and Medium Enterprises (SMEs) or regional companies, to successfully compete in the dynamic Indian market against established players.
Established in 1923, the Calcutta Stock Exchange has not seen equity trading since April 2013, when Sebi suspended its operations due to non-compliance with regulatory requirements applicable to recognized stock exchanges.