Calcutta Stock Exchange – One of Asia’s oldest and once-busiest bourses, the Calcutta Stock Exchange (CSE), is on the brink of formally shutting shop. More than a century after its establishment in 1908, the exchange has requested voluntary exit from the Securities and Exchange Board of India (SEBI), capping off years of legal battles, failed revival attempts, and a prolonged trading freeze since 2013.
CSE, which had long struggled to comply with SEBI’s evolving regulatory requirements, formally submitted its exit proposal in February 2025. SEBI is currently reviewing the application.
“CSE’s exit would not only mark the end of a financial institution but also close a chapter of Kolkata’s economic legacy,” said a former member-broker who witnessed its golden years in the 1990s.
The Rise of a Regional Giant
Founded as an association of brokers in 1908 and corporatized in 1980, the Calcutta Stock Exchange was, for decades, a financial powerhouse in Eastern India. By the late 1990s, CSE was bustling with trading activity, often clocking daily turnovers over ₹1,000 crore. It was, at one point, second only to the Bombay Stock Exchange (BSE) in terms of volume.
At its peak, CSE boasted over 4,000 listed companies—more than both BSE and NSE combined during certain periods in the early 2000s.
“It was not just a stock exchange, it was the heart of financial Kolkata. From iconic buildings like Lyons Range to generations of stockbrokers, CSE was a part of the city’s heritage,” recalls financial historian Dipankar Sengupta.
Fall From Relevance
The decline of CSE began with the rise of national-level exchanges, namely the National Stock Exchange (NSE) and BSE’s digital transformation. As trading volumes and investor trust shifted to these centralized, tech-savvy platforms, regional bourses like CSE began losing liquidity.
SEBI’s 2012 Exit Policy 🔗 was the decisive turning point. The policy stipulated that exchanges must maintain a minimum net worth of ₹100 crore and an annual turnover of ₹1,000 crore. Failure to meet these benchmarks would invite compulsory de-recognition or voluntary exit.
CSE couldn’t keep up.
In April 2013, trading on the exchange was suspended after SEBI refused to allow it to continue using the BSE’s trading platform. CSE was neither running its own trading platform nor had it established an independent clearing corporation—both mandatory under SEBI’s updated regulations.
Years of Legal Wrangling and Delays
CSE didn’t immediately bow out. It approached the Calcutta High Court in 2015, contesting SEBI’s direction to exit under the 2012 framework. Over the next several years, legal proceedings delayed any final action. SEBI continued pressing for closure, while the exchange sought time to revive itself.
In early 2024, the High Court granted CSE a six-month extension, requiring it to align with SEBI’s 2018 circular that mandates clearing and settlement only through SEBI-approved clearing corporations 🔗. However, CSE failed to fulfill the conditions.
With no appeal made to the Supreme Court, and SEBI’s refusal to extend the deadline, CSE finally decided to submit a voluntary exit proposal in February 2025.
The Failed Revival Plan
To comply with SEBI’s regulatory demands, CSE attempted to sell its prime 4-acre land parcel near the EM Bypass in Kolkata for ₹253 crore. The revenue was supposed to fund the development of a clearing corporation or a tie-up with existing ones like Indian Clearing Corporation (ICC) or NSE Clearing Ltd.
However, the proposed land sale never got state-level clearances. Bureaucratic delays and lack of political support halted what many saw as CSE’s last serious effort at revival.
“We had interest from investors and developers, but land-use issues and procedural hurdles ruined the deal,” said a senior CSE official on condition of anonymity.
What Happens to the Listed Companies and Investors?
Though trading has been suspended since 2013, over 2,000 companies remained technically listed on CSE. Most of these are also listed on NSE and BSE, including blue-chip firms like ITC, Eveready Industries, and Andrew Yule. Investors in such firms are unaffected by CSE’s exit.
Others, particularly smaller or inactive companies, will now be considered delisted following SEBI’s acceptance of the voluntary exit. These firms can reapply for listing on active exchanges if they meet eligibility criteria.
“There is no investor panic since all meaningful trading shifted to NSE and BSE years ago,” said Sandeep Khandelwal, an equity analyst.
SEBI’s Exit Policy and the Shrinking Map of Regional Bourses
Since 2012, SEBI’s tough stance has resulted in the closure of over 20 regional stock exchanges, including those in Delhi, Hyderabad, Jaipur, Bangalore, and Ludhiana. Only a handful—like Metropolitan Stock Exchange of India (MSEI)—still exist but operate on thin volumes.
The rationale? Clean up India’s fragmented and occasionally opaque regional market landscape and consolidate trading on a few well-regulated, highly liquid platforms.
“Stock exchanges aren’t just real estate or heritage institutions. They must serve markets transparently, securely, and efficiently. Those who cannot, must exit,” said a SEBI spokesperson in a 2024 media briefing.
The Emotional and Economic Legacy
The likely closure of the Calcutta Stock Exchange is being mourned by many in the city’s business circles as a symbolic loss.
- Generations of Kolkata families were connected to the exchange through brokerage firms.
- The Lyons Range area, once buzzing with traders and analysts, now wears a deserted look.
- Traditional investors and small-town brokers from Bengal, Bihar, and Odisha once relied heavily on CSE before digitization altered market access.
“It wasn’t just a market, it was an institution that trained us, fed us, gave us a community,” said Ashok Chowdhury, an 82-year-old retired broker.
Calcutta Stock Exchange: SEBI Yet to Respond
SEBI has not yet issued any public response regarding the acceptance or rejection of CSE’s voluntary exit application. If approved, SEBI will initiate the formal de-recognition and begin asset-liability settlement under its exit guidelines.
Until then, CSE remains a stock exchange only in name.
Final Curtain
The story of the Calcutta Stock Exchange is not just one of regulatory failure, but of missed opportunities, institutional inertia, and shifting economic paradigms.
Once a crown jewel of Eastern India’s financial landscape, it now waits for SEBI to deliver its final verdict.
In a digital-first world dominated by algorithmic trades and AI-driven exchanges, the quiet corridors of Lyons Range will soon belong to history—and nostalgia.
External References:
- SEBI Exit Policy (2012):
https://www.sebi.gov.in/legal/circulars/aug-2012/exit-policy-for-de-recognized-non-operational-stock-exchanges_22999.html - SEBI Clearing Corporation Guidelines (2018):
https://www.sebi.gov.in/legal/circulars/mar-2018/capital-and-securities-market-infrastructure-providers_38522.html - NSE Listing Resources:
https://www.nseindia.com/companies-listing
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