The Calcutta Stock Exchange: A Legacy Comes to an End
The Calcutta Stock Exchange, one of India’s oldest bourses, may this year celebrate its last Kali Puja and Diwali on October 20 as a functioning exchange, with the process of voluntary exit as a bourse nearing completion after a decade-long legal battle.
A Brief History of the Calcutta Stock Exchange
Founded in 1908, the 117-year-old institution once rivalled the Bombay Stock Exchange in trading volumes and stood as a symbol of Kolkata’s financial heritage. The exchange played a significant role in India’s capital markets, with 1,749 listed companies and 650 registered trading members at its peak.
However, the decline began after the Rs 120-crore Ketan Parekh-linked scam triggered a payment crisis at the Calcutta Stock Exchange, as several brokers defaulted on settlement obligations. The episode shattered investor and regulator’s confidence, resulting in a prolonged erosion of trading activity.
The Road to Voluntary Exit
Trading at CSE was suspended by SEBI in April 2013 following regulatory non-compliance. After years of efforts to revive operations and contest SEBI directives in courts, the exchange has now decided to back out of the business and seek a voluntary exit from its stock exchange licence.
“Approval has also been obtained from the 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, in turn, appointed a valuation agency for undertaking the valuation of stock exchange which is in progress,” CSE Chairman Deepankar Bose said.
Once SEBI grants exit approval for stock exchange business, CSE will function as a holding company, while its 100 per cent subsidiary, CSE Capital Markets Pvt Ltd (CCMPL), will continue broking as a member of NSE and BSE.
What’s Next for the Calcutta Stock Exchange?
The regulator has also cleared the proposed sale of CSE’s three-acre property on EM Bypass to the Srijan Group for Rs 253 crore, expected to be executed post-exit approval by SEBI.
A nostalgic mood now prevails among the few members as CSE prepares for its last festive celebration as an independent bourse.
“We began each day with a prayer to Goddess Lakshmi before trading till April 2013 when trading was suspended by the regulator. This Diwali feels like a farewell to that legacy,” said veteran stock broker Siddharth Thirani, recalling the bustle that once filled the Lyons Range floor till 1990s.
Impact on Indian Investors
The voluntary exit of the Calcutta Stock Exchange is likely to have a significant impact on Indian investors, particularly those who have been associated with the exchange for decades. The exit will also lead to a change in the landscape of the Indian stock market, with the NSE and BSE emerging as the dominant players.
However, the exit of the Calcutta Stock Exchange also presents an opportunity for Indian investors to explore new investment avenues and diversify their portfolios. With the growth of the Indian economy and the increasing participation of retail investors in the stock market, the demand for investment products and services is likely to increase, presenting a significant opportunity for investment firms and financial institutions.
Conclusion
The Calcutta Stock Exchange may be nearing its end as a functioning exchange, but its legacy will continue to be remembered as an important part of India’s financial history. As the Indian stock market continues to evolve, it is essential for investors to stay informed and adapt to the changing landscape.
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