Celebrating a Legacy: Calcutta Stock Exchange’s Heartfelt Farewell After 100 Years of Trading This Diwali
Kolkata’s iconic Calcutta Stock Exchange (CSE), one of India’s oldest stock markets, is set to mark its final Kali Puja and Diwali as an operational exchange on October 20. This farewell is a significant moment in the exchange’s history, as it prepares for a voluntary exit following years of legal disputes and regulatory scrutiny. Trading at CSE came to a halt in April 2013 after the Securities and Exchange Board of India (Sebi) cited non-compliance with regulations. Since then, the exchange has tirelessly sought to resume operations and challenge Sebi’s rulings in court, yet it has ultimately decided to wind down its stock trading business.
CSE Chairman Deepankar Bose announced that shareholders had approved the exit during an extraordinary general meeting on April 25, 2025. The exchange has since submitted an official exit application to Sebi, which has engaged a valuation agency to assess the exchange’s worth. If Sebi grants approval, the CSE will transform into a holding company, while its subsidiary, CSE Capital Markets Pvt Ltd (CCMPL), will continue to operate brokerage services on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Additionally, Sebi has authorized the sale of CSE’s three-acre property on the EM Bypass to the Srijan Group for ₹253 crore, pending final regulatory approval.
CSE was founded in 1908 and once rivaled the Bombay Stock Exchange, standing as a testament to Kolkata’s rich financial heritage. Its decline can be traced back to the infamous Ketan Parekh scandal, which resulted in significant financial losses and deteriorated investor confidence. Veteran stockbroker Siddharth Thirani reminisced about the bustling environment of the exchange in the 1990s, noting, “We began each day with a prayer to Goddess Lakshmi before trading till April 2013 when trading was suspended. This Diwali feels like a farewell to that legacy.”
In December 2024, the CSE board made the pivotal decision to withdraw from ongoing legal battles in both the Calcutta High Court and the Supreme Court, opting to pursue a voluntary exit instead. The formal application was submitted to Sebi on February 18, 2025, and subsequently gained shareholder support on April 25 of the same year. Bose noted in the FY25 report that the exchange had played a vital role in India’s capital markets, with 1,749 listed companies and 650 registered members.
To facilitate its exit, CSE introduced a Voluntary Retirement Scheme for all employees, entailing a one-time payout totaling ₹20.95 crore and projected annual savings of ₹10 crore. All employees opted for the scheme, although some will remain on contract for compliance-related tasks.
As CSE approaches this historic transition, it embodies the changing landscape of India’s financial markets while offering a poignant reminder of its storied past. The upcoming celebrations during Kali Puja and Diwali will serve as both a significant goodbye and a reflection on an illustrious chapter in the region’s financial history.
This marks not just the end of an era for CSE, but also a moment for its community to honor what was once a thriving center of trading activity in Kolkata.
Original Source: https://timesofindia.indiatimes.com/business/india-business/end-of-an-era-calcutta-stock-exchange-prepares-for-final-diwali-after-100-years-of-trading/articleshow/124684492.cms
Category :
Tags:
Publish Date: 2025-10-19 14:34:00
