Government Proposes Revival of Dormant Exchange
The BJP-led West Bengal government is actively considering proposals to revive the Calcutta Stock Exchange (CSE), which has been inactive for 13 years. Finance Minister Swapan Dasgupta made the announcement during his first budget statement for the 2026-27 fiscal year in the state assembly on Monday.
Dasgupta emphasized that reopening the exchange could help attract private investment and restore Kolkata's position as a key financial center for eastern India. The revival proposal is part of the broader 'Viksit Bharat, Viksit Bengal' vision.
Regulatory and Legal Hurdles
The Securities and Exchange Board of India (SEBI) suspended the CSE in 2023 due to non-compliance with regulatory standards, including insufficient trading activity and inadequate clearing and settlement systems. The suspension was later upheld by the courts.
In February 2025, the exchange applied for voluntary withdrawal from its status as a stock exchange after years of legal proceedings with SEBI. However, SEBI has not yet granted final approval for the exit, leaving the possibility of revival open.
Potential Benefits Highlighted
During the budget presentation, Dasgupta outlined several advantages of reviving the CSE. "In order to restore Kolkata's status as a financial hub, my government suggests supporting the Calcutta Stock Exchange's rebirth," he stated. He added that the resurrection would bring numerous benefits, including reduced listing and trading costs, easier access to capital for Eastern India, and the creation of new jobs.
The regulator had previously raised concerns about inadequate IT infrastructure, poor governance practices, and non-compliance. Despite these issues, the government sees potential in reviving the 118-year-old institution.
Historical Significance and Current Context
The Calcutta Stock Exchange is one of India's oldest financial institutions, but it has been dormant for over a decade. Dasgupta stressed the importance of reviving it during the first budget of the BJP-led government in West Bengal. He noted that the exchange has faced ongoing difficulties due to legal and regulatory restrictions, but its revival could enable Kolkata to reclaim its status as a major financial center.
The move comes amid risks of the exchange shutting down entirely. By supporting its revival, the government aims to bolster economic growth and investment in the region.
