Calcutta Stock Exchange may mark its last Diwali

Kolkata: Kolkata’s historic Calcutta Stock Exchange (CSE), one of India’s oldest bourses, may mark its final Kali Puja and Diwali as a functioning exchange on October 20, with the process of its voluntary exit nearing completion after more than a decade of legal battles.

Trading at the CSE has remained suspended since April 2013, when the Securities and Exchange Board of India (SEBI) halted operations due to regulatory non-compliance. Following years of attempts to revive trading and contest SEBI’s decisions in court, the exchange has now opted to exit the business and relinquish its licence.

“Approval has also been obtained from the shareholders vide EGM dated April 25, 2025 relating to the exit of the stock exchange business,” CSE Chairman Deepankar Bose stated. “Accordingly, CSE submitted the exit application to SEBI, which has, in turn, appointed a valuation agency for undertaking the valuation of the stock exchange, which is in progress.”

Once SEBI’s approval is granted, CSE will operate as a holding company, while its wholly owned subsidiary, CSE Capital Markets Pvt. Ltd. (CCMPL), will continue as a broker-member of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

SEBI has also cleared the proposed sale of the exchange’s three-acre property on EM Bypass to the Srijan Group for Rs 253 crore. The transaction is expected to be executed after SEBI’s final clearance of the exit plan.

Established in 1908, the 117-year-old CSE once rivalled the Bombay Stock Exchange in trading volumes and was a cornerstone of Kolkata’s financial legacy. Its decline began in the aftermath of the Rs 120-crore Ketan Parekh-related scam, which led to a payment crisis and broker defaults, eroding confidence among investors and regulators alike.

In December 2024, the CSE board resolved to withdraw all pending cases from the Calcutta High Court and Supreme Court and formally applied for voluntary exit on February 18, 2025.

As part of the restructuring, the exchange implemented a Voluntary Retirement Scheme for employees, costing Rs 20.95 crore and expected to save about Rs 10 crore annually.

Reflecting on the moment, veteran broker Siddharth Thirani said, “We began each day with a prayer to Goddess Lakshmi before trading till 2013. This Diwali feels like a farewell to that legacy.”