In a bid to regain its standing as a pivotal player in India’s financial markets, the Calcutta Stock Exchange (CSE) is meticulously planning a resurgence, aiming to reestablish itself as the country’s third equity exchange by March-April 2024. This strategic move follows a period of dormancy lasting nearly a decade, triggered by regulatory challenges that culminated in its suspension in April 2013.
Dhiraj Chakraborty, Chief General Manager of CSE, articulates the exchange’s ambitious vision to reintroduce itself with state-of-the-art technology and an expanded range of trading options, encompassing currency and commodity trading. The realization of these plans is contingent upon receiving regulatory approval, with the Securities and Exchange Board of India (SEBI) showing encouraging signs that could pave the way for CSE’s comeback. Chakraborty has committed to aligning with regulatory prerequisites by January to facilitate this process.
During its period of dormancy, CSE has remained active through a strategic partnership with the National Stock Exchange (NSE), allowing approximately 400 trading members to sustain operations. As it prepares for its re-emergence, CSE boasts a robust portfolio of 1,842 listed companies and maintains a net worth that complies with regulatory standards.
Stakeholders, while cautiously optimistic about the exchange’s future, acknowledge the uncertainties surrounding CSE’s independent operations. Abhirup Sarkar, Shareholder Director, emphasizes that time will be the ultimate arbiter of the success of CSE’s efforts. The Bombay Stock Exchange (BSE) continues to be a significant supporter of CSE, holding a 4.99% stake, along with additional backing from the West Bengal Infrastructure Development Finance Corporation Ltd., which owns a 3.37% stake.
The final steps towards CSE’s revival hinge on the verdict from the Calcutta High Court and further approvals from SEBI. As the exchange navigates these crucial moments, its objective extends beyond reclaiming former glory to innovating and adapting to the evolving landscape of India’s capital markets.
