Calcutta Stock Exchange revival: CSE says future course depends on Sebi guidance; experts flag challenges
During the West Bengal Budget presentation on June 22, Finance Minister Swapan Dasgupta said the state government would support the revival of the Calcutta Stock Exchange to help restore Kolkata's position as a financial hub.
- Jul 13, 2026,
- Updated Jul 13, 2026 1:37 PM IST
The proposed revival of the century-old Calcutta Stock Exchange (CSE) has gained attention after the West Bengal government announced its intent to support the bourse's return, although market participants believe significant regulatory and commercial challenges remain before any revival can materialise.
During the West Bengal Budget presentation on June 22, Finance Minister Swapan Dasgupta said the state government would support the revival of the Calcutta Stock Exchange to help restore Kolkata's position as a financial hub.
"My Government proposes to support the revival of the Calcutta Stock Exchange so as to reclaim Kolkata's place as a financial capital. The revival of the Calcutta Stock Exchange would have multifarious advantages, including easier access to capital for Eastern India, lower costs of listing and trading, and create new jobs," Dasgupta said during his Budget speech.
Following the government's announcement, CSE has sought to pause its voluntary exit process.
"Based on the government of West Bengal's declaration, Sebi has been requested to keep the application for exit on hold. Future course of action will be initiated only after the exchange receives guidance from Sebi," Deepankar Bose, Public Interest Director at CSE, told Business Today.
CSE had applied for a voluntary exit from stock exchange operations in February 2025 after years of regulatory disputes with Sebi. The market regulator is yet to pass a final order on the exchange's exit application.
That said, some market experts noted that reviving the exchange would require overcoming regulatory and business-related obstacles.
"The idea of reviving the institution is always welcome, but the reality appears to be much more challenging. India's stock exchange ecosystem has evolved into a market largely centred around the major exchanges, BSE and NSE. Over the years, a significant number of companies that were once listed on regional stock exchanges have migrated to these larger platforms. Any meaningful revival of the erstwhile Calcutta Stock Exchange would likely depend on greater participation from its regional members and their integration with the broader market ecosystem," said market veteran Arun Kejriwal.
Ravi Singh, Chief Research Officer at Master Capital Services, said the state government's optimism is understandable but pointed to certain hurdles that could slow the process.
"The major reason for the revival of an exchange like CSE is a lot of optimism on the West Bengal government's part. But there are many caveats to making this revival successful," Singh said.
"Even though the company coming back live is a positive sign on paper, the hurdles are far more in number as compared to positives. Regulatory hurdles and liquidity are some concerns. Commercially, the business would remain in a risky position even if it has government backing, unless it picks a niche business, such as SMEs or regional companies. Competing with other exchanges in this dynamic market could be difficult," Singh also said.
Established in 1923, the Calcutta Stock Exchange has not witnessed equity trading since April 2013 after the Securities and Exchange Board of India (Sebi) suspended trading on the bourse for failing to comply with regulatory requirements applicable to recognised stock exchanges.
The proposed revival of the century-old Calcutta Stock Exchange (CSE) has gained attention after the West Bengal government announced its intent to support the bourse's return, although market participants believe significant regulatory and commercial challenges remain before any revival can materialise.
During the West Bengal Budget presentation on June 22, Finance Minister Swapan Dasgupta said the state government would support the revival of the Calcutta Stock Exchange to help restore Kolkata's position as a financial hub.
"My Government proposes to support the revival of the Calcutta Stock Exchange so as to reclaim Kolkata's place as a financial capital. The revival of the Calcutta Stock Exchange would have multifarious advantages, including easier access to capital for Eastern India, lower costs of listing and trading, and create new jobs," Dasgupta said during his Budget speech.
Following the government's announcement, CSE has sought to pause its voluntary exit process.
"Based on the government of West Bengal's declaration, Sebi has been requested to keep the application for exit on hold. Future course of action will be initiated only after the exchange receives guidance from Sebi," Deepankar Bose, Public Interest Director at CSE, told Business Today.
CSE had applied for a voluntary exit from stock exchange operations in February 2025 after years of regulatory disputes with Sebi. The market regulator is yet to pass a final order on the exchange's exit application.
That said, some market experts noted that reviving the exchange would require overcoming regulatory and business-related obstacles.
"The idea of reviving the institution is always welcome, but the reality appears to be much more challenging. India's stock exchange ecosystem has evolved into a market largely centred around the major exchanges, BSE and NSE. Over the years, a significant number of companies that were once listed on regional stock exchanges have migrated to these larger platforms. Any meaningful revival of the erstwhile Calcutta Stock Exchange would likely depend on greater participation from its regional members and their integration with the broader market ecosystem," said market veteran Arun Kejriwal.
Ravi Singh, Chief Research Officer at Master Capital Services, said the state government's optimism is understandable but pointed to certain hurdles that could slow the process.
"The major reason for the revival of an exchange like CSE is a lot of optimism on the West Bengal government's part. But there are many caveats to making this revival successful," Singh said.
"Even though the company coming back live is a positive sign on paper, the hurdles are far more in number as compared to positives. Regulatory hurdles and liquidity are some concerns. Commercially, the business would remain in a risky position even if it has government backing, unless it picks a niche business, such as SMEs or regional companies. Competing with other exchanges in this dynamic market could be difficult," Singh also said.
Established in 1923, the Calcutta Stock Exchange has not witnessed equity trading since April 2013 after the Securities and Exchange Board of India (Sebi) suspended trading on the bourse for failing to comply with regulatory requirements applicable to recognised stock exchanges.