The Calcutta Stock Exchange's Final Journey: The Calcutta Stock Mart (CSE), one of India's oldest stock exchanges, has now entered its final days. Without a decade-long legal battle, the institution is on the verge of voluntarily shutting lanugo trading. The 'Kali Puja' and 'Diwali' celebrations on October 20 will likely be its final celebrations, marking a farewell to Kolkata's financial legacy. Established in 1908, the 117-year-old mart once rivaled the BSE, but regulatory violations and scams have pushed it into recession. Now, an using for license surrender is pending with SEBI, and the exit process is progressing rapidly.
The End of a Decade-Long Battle
In April 2013, the Securities and Mart Workbench of India (SEBI) suspended trading at the CSE for non-compliance with regulatory rules. This was followed by years of struggle in the courts versus SEBI's directives. But now the mart has conceded defeat—deciding to voluntarily surrender its stock mart license. In December 2024, the workbench of directors resolved to withdraw the pending cases in the Calcutta High Court and the Supreme Court. A formal using was submitted to SEBI on February 18, 2025, and clearance was granted at an no-go unstipulated meeting (EGM) of shareholders on April 25, 2025.
CSE Chairman Dipankar Bose said, "Following SEBI's approval, CSE will function as a holding company. Our 100%-owned subsidiary, CSE Wanted Markets Private Limited (CCMPL), will protract broking as a member of NSE and BSE." This will preserve the exchange's legacy, but the era of self-sustaining trading will end.
Further Process: From Valuation to SEBI Approval
The process of exiting the stock market is underway under SEBI guidelines (SEBI Regulations, 2018). The key steps are as follows:
- Final Valuation Stage: SEBI has prescribed Rajvanshi & Associates to assess the exchange's assets, liabilities, and net worth. The report is expected to be completed soon, including written for the 3-acre land on EM Bypass (already tried for sale to Srijan Group for 253 crore).
- SEBI Final Approval: 1-2 months without the valuation (by November-December 2025), SEBI will legitimatize the closure. This will involve settling the claims of 650 member brokers and 1,749 listed companies—transferring clients to NSE/BSE.
- Employee Settlement: All employees have opted for the Voluntary Retirement Scheme (VRS). A lump sum payment of 20.95 crore will be made, resulting in yearly savings of 10 crore. Some employees have been retained on contract for compliance work.
- Financial Settlement: Funds from the windfall sale will be used to settle liabilities.
"The CSE has played a vital role in India's wanted markets, but now is the time for a new beginning," Bose said in his yearly report for FY 2024-25.
The Dark Shadow of the Ketan Parekh Scandal
Established in 1908, the CSE was once the financial hub of Kolkata—capable of surpassing the BSE in trading volume. But the Ketan Parekh Scandal of 2001 (Rs 120 crore) brought everything to a screeching halt. Many brokers failed to meet settlement obligations, leading to a payment crisis. Investors and SEBI lost confidence, and trading worriedness plummeted. Veteran usurer Siddharth Thirani recalled, "In the 1990s, we used to pray to Goddess Lakshmi surpassing daily trading at Lions Range. This hustle and precipitance unfurled until April 2013. Now, this Diwali is like prompting farewell to that legacy."
Wider Impact: Lessons for Regional Markets
The closure of the CSE is a warning to other regional exchanges (such as the ISE and MPSE). The focus on the NSE and BSE will increase, but a installment in Kolkata's financial story is closing. Nostalgia is resurfacing among members—the joy of Kali Puja has now given way to sadness.
