Calcutta Stock Exchange Closing After 100 Years of Trading

The Calcutta Stock Exchange (CSE) is likely to mark its last Diwali as a functioning bourse on October 20, with its voluntary exit process nearing completion after years of legal and regulatory hurdles.

Trading on the exchange has been halted since April 2013 due to repeated non-compliance with the Securities and Exchange Board of India (Sebi) norms. After multiple attempts to revive operations and a prolonged legal battle, the exchange has decided to formally withdraw from the stock exchange business.

“Approval has been obtained from shareholders vide EGM dated April 25, 2025, relating to the exit of the stock exchange business. Accordingly, CSE submitted the exit application to Sebi, which has appointed a valuation agency to undertake valuation of the stock exchange,” CSE Chairman Deepankar Bose said.

Once Sebi gives its nod, CSE, which is one of the country’s oldest stock exchanges, become a holding company. Its fully owned subsidiary, CSE Capital Markets Pvt Ltd (CCMPL), will continue broking services as a member of NSE and BSE.

Sebi’s review process

Sebi has tasked Rajvanshi & Associate with conducting the valuation, the final procedural step before the exchange receives formal exit approval.

The regulator has also approved CSE’s plan to sell its three-acre EM Bypass property to Srijan Group for ₹253 crore, a transaction that will be completed after the exit is finalised.

From heritage to decline

Established in 1908, the 117-year-old exchange once competed with the Bombay Stock Exchange in trading volumes and served as the financial centre of Kolkata’s Lyons Range.

However, the ₹120-crore Ketan Parekh-linked scam in the early 2000s led to a payment crisis, as several brokers defaulted on settlements, severely damaging investor trust and regulatory confidence.

Activity at CSE continued to fall through the 2000s, and by 2013, Sebi suspended its operations for persistent non-compliance.

Farewell to trading

In December 2024, the board decided to withdraw all ongoing cases before the Calcutta High Court and the Supreme Court and pursue a voluntary exit. The plan was formally endorsed by shareholders in April 2025.

The exchange also introduced a Voluntary Retirement Scheme (VRS) for all its employees, offering a one-time payout of ₹20.95 crore. The move is projected to save around ₹10 crore annually. All staff accepted the offer, with a few retained on contract for compliance duties.

A sense of nostalgia now surrounds long-time members as the bourse prepares for what could be its final festive season as an operational exchange.

Why this matters

CSE’s departure signals the end of an era for India’s regional stock exchanges, once bustling with trade before electronic platforms shifted market concentration to Mumbai.

The development reflects the transformation of India’s capital markets through regulatory tightening and technological modernisation, leaving behind legacy institutions like CSE as markers of financial history.

As Chairman Deepankar Bose wrote in the FY25 annual report, “CSE has played an important role in India’s capital markets.”