The Calcutta Stock Exchange (CSE) may have stepped back from its proposed exit, but its revival remains uncertain as the exchange is yet to submit a formal plan to the Securities and Exchange Board of India (SEBI). The development was disclosed by Minister of State for Finance Pankaj Chaudhary in Parliament on Tuesday. The update comes after the CSE approached SEBI in July seeking to pause its exit application. However, according to the government, the request to reconsider the exit has not been followed by a formal revival proposal.
The had originally applied for voluntary exit from the stock exchange business on February 18, 2025. SEBI subsequently began examining the application and appointed a valuation agency to assess the exchange’s assets and liabilities.
The exchange later communicated with the regulator on July 1, 2026, asking that its exit process be kept on hold. The move came against the backdrop of growing efforts to revive the exchange, including support from the West Bengal government.
“SEBI has received a formal communication from the CSE dated July 01, 2026, to keep on hold their exit application filed on Feb 18, 2025,” Chaudhary said in a written reply to a question in the Rajya Sabha. “SEBI has informed that CSE has not submitted any formal proposal for its revival to the SEBI.”
SEBI Yet To Decide On CSE Exit
Despite the CSE’s request to suspend the exit process, the matter has not been resolved by the regulator. The government’s response makes clear that SEBI continues to examine the exchange’s original application.
“The exchange’s exit application remains under regulatory consideration,” Chaudhary said. “No decision has been taken on the said application by SEBI,” he added.
The uncertainty leaves the CSE’s future open-ended. While its exit request remains pending, there is currently no formal revival proposal before SEBI that could set out how the exchange intends to restart operations.
West Bengal Push Raises Revival Hopes
The latest developments follow the West Bengal government’s backing for efforts to bring the exchange back to life. The CSE has been without equity trading activity for more than 10 years, making any potential revival a significant undertaking.
The state government’s support had nevertheless generated renewed interest in the exchange and triggered a sharp increase in the prices of its unlisted shares.
The CSE’s decision to seek a pause in its exit application came after this renewed push for revival. However, without a formal proposal outlining the exchange’s plans, SEBI cannot yet consider a concrete roadmap for restarting operations.
CSE Assets, Liabilities Under Review
Meanwhile, the valuation exercise ordered as part of SEBI’s examination of the exit application has moved forward. The agency appointed by the regulator has begun assessing the CSE’s assets and liabilities and has already submitted its report to SEBI.
However, the valuation process is not entirely complete, as some information requested from the exchange is still awaited.
The CSE also needs to address several issues linked to its proposed exit. These include determining the future treatment of companies that are exclusively listed on the exchange, deciding how its assets would be handled and resolving outstanding dues involving brokers.
SEBI has continued seeking information from the CSE as it evaluates the exchange’s application.
Even if the CSE ultimately decides to pursue a return to stock exchange operations, it would have to satisfy the regulatory requirements governing recognised exchanges.
“To resume operations as a stock exchange, the applicant has to comply with all relevant provisions” of the Securities Contracts (Regulation) Act, 1956, the Securities Contracts (Regulation) Rules, 1957, and the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, Chaudhary said.