Key Takeaways
- Calcutta Stock Exchange, founded in 1908, is exiting stock market operations after regulatory approval
- All employees accepted voluntary retirement with Rs 20.95 crore payout
- Subsidiary CSE Capital Markets will continue brokerage operations
- Exchange selling three-acre land for Rs 253 crore as part of exit process
The 117-year-old Calcutta Stock Exchange (CSE) is nearing its final exit from stock market operations after a prolonged regulatory battle. Shareholders approved the voluntary exit plan in April 2025, marking the end of an era for one of India’s oldest financial institutions.
From Glory Days to Regulatory Challenges
Founded in 1908, CSE once competed directly with the Bombay Stock Exchange and was a cornerstone of Kolkata’s financial landscape. The exchange’s fortunes declined significantly after the 2001 Ketan Parekh scam, which triggered a payment crisis and eroded investor confidence.
SEBI suspended trading at CSE in April 2013 due to regulatory compliance issues. Despite years of legal challenges and attempts to restart operations, the exchange’s board ultimately decided to exit the business entirely.
Exit Process and Current Status
CSE submitted its formal exit application to SEBI on February 18 this year. The market regulator has appointed Rajvanshi & Associate as the valuation agency to conduct the final review before granting approval.
Once SEBI gives the green signal, CSE will cease functioning as a stock exchange. However, its wholly-owned subsidiary will continue operations as a broker and remain a member of both NSE and BSE.
Asset Sales and Employee Transition
As part of the exit process, CSE received SEBI approval to sell its three-acre land on EM Bypass to Srijan Group for Rs 253 crore. The transaction will be completed after SEBI grants the final exit approval.
The exchange implemented a Voluntary Retirement Scheme (VRS) for all employees, offering a one-time payout of Rs 20.95 crore. All staff members accepted the offer, though a few were retained on contract for compliance work. This move is expected to save approximately Rs 10 crore annually.
Historical Legacy
At its peak, CSE hosted 1,749 listed companies and had 650 registered trading members. In the FY2025 annual report, Chairman Deepankar Bose acknowledged the exchange’s significant role in India’s capital markets history. He also disclosed receiving Rs 5.9 lakh in sitting fees during the financial year.
