Calcutta Stock Exchange Closing Down After 117 Years? This Is Where Things Stand
Kolkata’s iconic Calcutta Stock Exchange is preparing to bid farewell as it moves toward a voluntary exit after years of regulatory hurdles and legal challenges.
Kolkata’s Calcutta Stock Exchange (CSE), one of India’s oldest bourses, may be celebrating its last Kali Puja and Diwali as a functioning exchange in 2025, as per a report by PTI.
If this transpires, this will mark the end of a 117-year-old journey. The exchange is now moving toward a voluntary exit following years of legal struggles and regulatory woes.
Trading at the CSE was suspended by SEBI in April 2013 due to non-compliance with regulatory requirements. Over the past decade, the exchange made many attempts to resume operations and contest SEBI’s decisions in court.
The CSE on its part has denied the report about its closure, calling them incorrect. Exchange officials told NDTV that the CSE remains operational and has not received any regulatory approval to wind down its business. The exchange has also said that it will issue an official statement after Diwali.
Shareholders Approve Exit Plan
“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,” said CSE chairman Deepankar Bose, according to PTI. If SEBI gives its nod, CSE will remain a holding company with its subsidiary, CSE Capital Markets Pvt. Ltd. (CCMPL), carrying on broking business on the NSE and BSE.
Once A Trading Powerhouse, Now A Fading Legacy
Founded in 1908, the Calcutta Stock Exchange was once a formidable rival to the BSE, dominating trade volumes and serving as the financial nerve centre of Kolkata’s Lyons Range. The exchange’s decline began after the Rs 120-crore Ketan Parekh scam, which led to broker defaults and dealt a severe blow to investor confidence. Trading activity steadily declined over the years during the 2000s, leading to SEBI suspending the operations in 2013 following repeated non-compliance.
Choosing Exit Over Court Battles
In December 2024, the CSE board decided to withdraw all ongoing cases pending before the Calcutta High Court and the Supreme Court, choosing instead to seek a voluntary exit. The exchange formally applied to SEBI on Feb. 18, receiving shareholder approval on April 25.
As part of its restructuring, the CSE launched a Voluntary Retirement Scheme (VRS) for all employees, offering a one-time payout of Rs 20.95 crore. The move is expected to save around Rs 10 crore annually. All staff accepted the offer, with a few retained on a contractual basis for compliance functions.
The CSE’s closure marks the end of an era for India’s regional stock exchanges, which once thrived before trading activity consolidated around Mumbai’s electronic platforms.
