The West Bengal government is supporting the revival of the 118-year-old Calcutta Stock Exchange, moving to halt its planned exit from operations. The state administration aims to use the exchange to improve capital access for local businesses and list state public sector companies.
The West Bengal government has officially proposed the revival of the 118-year-old Calcutta Stock Exchange (CSE), marking a significant shift from the institution’s previous path toward voluntary closure. The exchange, which had applied for a formal exit from stock market operations in February 2025 following a decade-long period of inactivity, is now preparing a strategic roadmap to resume trading activities. This initiative, which was a highlight of the state’s FY 2026-27 budget, aims to position Kolkata as a financial hub and create new opportunities for capital raising in Eastern India.
Challenges to Commercial Revival
While the state government’s push seeks to unlock corporate value and improve capital access for local businesses, the path to a successful relaunch is complex. The CSE has been suspended from trading since April 2013 due to regulatory non-compliance issues. Restarting a stock exchange that has been dormant for over a decade presents significant operational, technical, and regulatory hurdles. The exchange must now convince the Securities and Exchange Board of India (SEBI) that it can maintain robust surveillance, technology, and governance standards in a market environment dominated by the National Stock Exchange (NSE) and the BSE.
Another core challenge is commercial viability. The Indian stock market is highly concentrated, with the vast majority of trading volumes occurring on the NSE and BSE. Building sufficient liquidity to attract traders, brokers, and listed companies to a regional platform remains a difficult task. Even with strong state backing, the exchange must prove it can offer a competitive value proposition to market participants who are already accustomed to the deep liquidity and advanced technology of the national bourses.
Ownership and Financial Position
Financially, the exchange meets the minimum regulatory requirements for regional bourses, with a net worth reported to be over ₹100 crore. Its ownership structure reflects a mix of stakeholders: approximately 49% of the shares are held by brokers, while the remaining 51% is held by corporate shareholders. This group includes key entities such as the BSE, which holds about 4.99%, and the West Bengal Infrastructure Development Finance Corporation (WBIDFC), which holds 3.38%.
The state government’s interest in the exchange is partly driven by a broader plan to list profitable state public sector undertakings. By reviving the exchange, the administration hopes to create a dedicated platform for these companies to raise capital through disinvestment. However, the success of this plan will depend heavily on the strategic roadmap currently being finalized by the CSE management for its upcoming board meeting. The next major milestone for investors and stakeholders will be the formal communication between the exchange and SEBI regarding the withdrawal of the exit application and the submission of a plan to meet modern regulatory standards.