Will Calcutta Stock Exchange make a comeback?
What's the story
The West Bengal government has proposed a revival plan for the Calcutta Stock Exchange (CSE), which has been dormant for over a decade. The announcement was made by Finance Minister Swapan Dasgupta while presenting the 2026-27 state budget. He said that the government is committed to reviving this historic institution as part of its vision for a "Viksit Bharat" and "Viksit Bengal."
Financial revival
Revival could help Kolkata regain its financial capital status
Dasgupta stressed the importance of reviving CSE, one of India's oldest institutions. He said that the exchange has been struggling due to legal and regulatory hurdles. The minister added that reviving it could help Kolkata regain its status as a major financial capital. "The revival of the Calcutta Stock Exchange would have multifarious advantages, including easier access to capital for Eastern India," he said.
Operational challenges
CSE had sought state support to prevent its closure
The government's announcement comes after CSE's recent attempts to resume operations. A delegation from the exchange met Industry Minister Tapas Roy and requested state support to prevent its closure. The officials expressed their desire to withdraw a voluntary exit application filed with the Securities and Exchange Board of India (SEBI) in February 2025, instead seeking revival and resumption of trading activities.
Regulatory issues
CSE has not traded since April 2013
CSE has not traded since April 2013, when SEBI suspended its operations over compliance issues, governance standards, and technological infrastructure. The exchange has been embroiled in legal disputes with SEBI for years. However, no final exit order has been issued by the regulator yet, leaving a window open for potential revival.
Future challenges
Reviving CSE will be a complicated process
Reviving CSE will be a long and complicated process. India's stock market ecosystem has changed drastically in the last decade, with exchanges now required to operate sophisticated electronic trading platforms, maintain strong cybersecurity systems, and ensure seamless clearing and settlement mechanisms. To restart trading, CSE would need to prove its compliance with all modern regulatory and technological requirements, which would require significant investments in technology, infrastructure, and compliance systems.