Calcutta Stock Exchange
Kolkata, Calcutta Stock Exchange (CSE), one of the oldest stock exchanges in India, may celebrate its last Kali Puja and Diwali on October 20 this year as the process of voluntary closure of the exchange after a long-running legal battle is almost complete. Trading in CSE was halted by SEBI in April 2013 due to non-compliance. After prolonged efforts to restart operations and challenging SEBI orders in court, the exchange has now decided to exit the business and take voluntary exit from its stock exchange license.
CSE Chairman Dipankar Bose said, approval has also been received from the shareholders in the EGM held on April 25, 2025 to exit the exchange business. After this CSE has applied to SEBI for exit. SEBI has now appointed a valuation agency to evaluate the exchange, and the process is ongoing.
Last Diwali of Calcutta Stock Exchange
After receiving voluntary exit approval from SEBI, CSE will operate as the holding company, while its 100% subsidiary CSE Capital Markets Private Limited will continue broking under the membership of NSE and BSE. The regulator has also approved the sale of three acres of property on CSE’s EM Bypass to Srijan Group for ₹253 crore, which will be completed after getting exit approval from SEBI.
How the collapse of Calcutta Stock Exchange started
Established in 1908, this 117-year-old institution once rivaled the Bombay Stock Exchange in trading volume and was considered a symbol of Kolkata’s financial heritage. But the downfall began when the ₹120 crore scam involving Ketan Parekh created a payment crisis at the CSE, and many brokers could not meet their settlement responsibilities. This incident broke the confidence of investors and the regulator, leading to a long-term decline in trading activity.
VRS scheme started for all employees
Now there is a nostalgic atmosphere among a few members as CSE prepares to celebrate its last festival. Senior stock brokers Siddharth Thirani said, we used to worship Goddess Lakshmi before starting trading every day till April 2013. This Diwali, there is a feeling of saying goodbye to the same heritage. In December 2024, the board of CSE decided to withdraw the cases pending in the Kolkata High Court and the Supreme Court and conduct a voluntary exit. The proposal was formally submitted to SEBI on 18 February and received shareholders’ approval on 25 April. SEBI has appointed Rajvanshi & Associates for valuation before final approval.
As part of the preparations, the exchange launched the Voluntary Retirement Scheme (VRS) for all employees, which included a lump sum payment of ₹20.95 crore and will lead to savings of about ₹10 crore annually. All employees opted for the scheme, while some were put on contract for compliance work. In the CSE’s FY25 annual report, Chairman and Public Interest Director Dipankar Bose wrote that the exchange has played a significant role in India’s capital market, with 1,749 listed companies and 650 trading members. The report also revealed that Bose received ₹5.9 lakh as director’s meeting fees during 2024-25.