Calcutta Stock Exchange reverses wind-down plan to target SMEs
India's 118-year-old Calcutta Stock Exchange is withdrawing its voluntary exit application to pursue a state-backed relaunch targeting small and medium enterprises in eastern India.
The Calcutta Stock Exchange (CSE) is preparing to scrap its planned wind-down just months after applying to close. The exchange's board will need to pass a fresh resolution to formally inform the Securities and Exchange Board of India (Sebi) that it is withdrawing its February 2025 voluntary exit application, according to a person familiar with the process. The sudden reversal follows a renewed push by West Bengal state finance minister Swapan Dasgupta.
The pivot is underpinned by a surprisingly robust balance sheet. The bourse, whose shareholders include the BSE with a 5.05% stake and the West Bengal Infrastructure Development Finance Corporation with 3.4%, has a net worth exceeding ₹300 crore. This financial cushion was bolstered by a ₹253 crore land sale earlier this year and ₹26 crore in annual income largely from listing fees and bank interest.
When CSE applied to wind up, Sebi appointed an independent valuer and formed a working group to manage the exit under its 2012 framework for regional exchanges. That framework mandates that bourses with annual turnover below ₹1,000 crore must either reach the threshold, apply to surrender their recognition, or face compulsory de-recognition. Unlisted CSE shares have already priced in the turnaround risk, surging to ₹1,995 on grey markets on July 10, up from ₹1,500 on June 21.
To survive against dominant national exchanges, market participants believe CSE must target a highly specific demographic. “The Calcutta Stock Exchange could tap the business potential available in the eastern region. The state government's move to revive CSE is expected to pave the platform for it,” a CSE official said, while a local broker noted it "must look to create niche products, and position itself as an incubation and small business listing platform for eastern India entities."
Success hinges entirely on technological execution rather than just regulatory clearance. “It will create new job opportunities in the state,” said JM Chaudhury, who served as CSE president three times between 1994 and 2000. “However, CSE should have its own trading platform like the one we developed. Otherwise, no recovery effort would become fruitful.”
