The Calcutta Stock Exchange (CSE), one of India’s oldest stock exchanges (started in 1908), has been inactive since 2013 because it failed to meet SEBI’s regulatory requirements, such as having a proper clearing corporation, adequate trading activity, and modern infrastructure.
Earlier, CSE had applied to voluntarily exit as a recognized stock exchange after years of legal disputes and regulatory challenges. However, it is now planning to withdraw that exit application and restart operations instead.
Why the revival?
- The West Bengal government wants to make Kolkata a financial hub again.
- CSE plans to build a new trading platform, upgrade its technology, and set up a disaster recovery site.
- It already has enough capital, although much of it is currently locked in an escrow account.
What does this mean for investors?
- Nothing changes immediately. Trading on CSE has not resumed yet.
- The exchange must first get SEBI’s approval to withdraw its exit application and satisfy all regulatory requirements.
- If approved, CSE could become another stock exchange alongside NSE and BSE, potentially improving competition and providing more fundraising opportunities for companies, especially in Eastern India.