Kolkata: The Calcutta Stock Exchange (CSE), one of India’s oldest bourses, may this year celebrate its last Kali Puja and Diwali on October 20 as a functioning
exchange, with the process of voluntary exit as a bourse nearing completion after a decade-long legal battle. Trading at CSE was suspended by SEBI in April 2013 following regulatory non-compliance. After years of efforts to revive operations and contest SEBI directives in courts, the exchange has now decided to back out of the business and seek a voluntary exit from its stock exchange licence.
“Approval has also been obtained from the 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, in turn, appointed a valuation agency for undertaking the valuation of stock exchange which is in progress,” CSE Chairman Deepankar Bose said. Once SEBI grants exit approval for stock exchange business, CSE will function as a holding company, while its 100 per cent subsidiary, CSE Capital Markets Pvt Ltd (CCMPL), will continue broking as a member of NSE and BSE.
The regulator has also cleared the proposed sale of CSE’s three-acre property on EM Bypass to the Srijan Group for Rs 253 crore, expected to be executed post-exit approval by SEBI. Founded in 1908, the 117-year-old institution once rivalled the Bombay Stock Exchange in trading volumes and stood as a symbol of Kolkata’s financial heritage.
The decline began after the Rs 120-crore Ketan Parekh-linked scam triggered a payment crisis at the Calcutta Stock Exchange, as several brokers defaulted on settlement obligations. The episode shattered investor and regulator’s confidence, resulting in a prolonged erosion of trading activity.
A nostalgic mood now prevails among the few members as CSE prepares for its last festive celebration as an independent bourse. “We began each day with a prayer to Goddess Lakshmi before trading till April 2013 when trading was suspended by the regulator. This Diwali feels like a farewell to that legacy,” said veteran stock broker Siddharth Thirani, recalling the bustle that once filled the Lyons Range floor till 1990s.
In December 2024, CSE’s board resolved to withdraw its pending cases in the Calcutta High Court and the Supreme Court and apply for voluntary exit. The proposal was formally submitted to SEBI on February 18, and received shareholder approval on April 25 this year. SEBI has appointed Rajvanshi & Associate to undertake the valuation — the final step before approval.
In preparation, the exchange launched a Voluntary Retirement Scheme (VRS) for all employees, entailing a one-time payout of Rs 20.95 crore which will have an annual savings of around Rs 10 crore. All employees opted for the scheme, with some retained on contract for compliance work. In his FY25 annual report, CSE Chairman and Public Interest Director Deepankar Bose noted that the exchange “has played an important role in India’s capital markets”, with 1,749 listed companies and 650 registered trading members. The report also disclosed that Bose received Rs 5.9 lakh as director’s sitting fees during 2024-25.
