Calcutta Stock Exchange: An Analysis

The Calcutta Stock Exchange (CSE), a historic trading center, is set to close its doors on October 20th. After a long and challenging period, marked by legal battles and regulatory issues, the exchange is formally ending its operations. This marks the end of a significant chapter in India’s financial history.

Key Points

• CSE closing on October 20th after years of problems.
• Trading halted since 2013 due to regulatory issues.
• Exchange will become a holding company, not a trader.
• Valuation underway to finalize the exit process.
• Property sale approved for ₹253 crore to Srijan Group.
• Employees offered a payout and VRS to simplify closure.

The CSE, established in 1908, was once a major competitor to the Bombay Stock Exchange. It played a vital role in Kolkata’s financial landscape. However, a major scandal in the early 2000s, linked to Ketan Parekh, led to a severe crisis and loss of investor confidence.

Following this crisis, trading activity at the CSE declined steadily. Ultimately, the Securities and Exchange Board of India (Sebi) suspended operations due to repeated non-compliance. The exchange then took the decision to voluntarily exit the stock exchange business, a process formally approved by its shareholders in April 2025.

To facilitate this exit, Sebi has appointed a valuation agency, Rajvanshi & Associate, to determine the value of the exchange. Simultaneously, the exchange is selling its three-acre property on the EM Bypass to Srijan Group for ₹253 crore. This sale will happen after the official exit approval.

The exchange implemented a Voluntary Retirement Scheme (VRS) for its employees, offering a one-time payout of ₹20.95 crore. Nearly all employees accepted the offer, although a few were retained on contract to handle compliance matters. This payout will save the exchange approximately ₹10 crore annually.

The closure of the CSE reflects a broader trend in India’s capital markets. As electronic trading platforms shifted market concentration to Mumbai, regional exchanges like CSE faced increasing challenges. The CSE’s story serves as a marker of financial history, representing a shift in India’s economic landscape.

“CSE has played an important role in India’s capital markets.” – Deepankar Bose, Chairman.