Calcutta Stock Exchange Revival Under Review as Regulator Assesses Feasibility Markets regulator SEBI is reviewing a proposal to restart the Calcutta Stock Exchange, making trading viability, sufficient liquidity, and robust technology key conditions for approval. While equity trading in India has remained centered almost entirely in Mumbai for years, regulatory discussions could pave the way for trading activity to resume in the eastern region. The Securities and Exchange Board of India (SEBI) is actively considering a plan to revive the more than a century-old Calcutta Stock Exchange (CSE). SEBI Chairman Tuhin Kanta Pandey noted that any decision on granting operational clearance will depend strictly on the exchange's ability to demonstrate adequate trading volumes, secure a commercially viable operational model, and deploy substantial capital into modern market technology. State Government Proposal and Regulatory Capital Benchmarks The push to bring the historic bourse back to life follows a formal proposal submitted by the West Bengal government. Addressing this outreach, Pandey stated that current regulatory provisions do not prohibit the functioning of a new or revived stock exchange. However, any entity seeking approval must strictly comply with established regulatory mechanisms, risk management frameworks, and net worth guidelines. The broader market landscape has shifted radically since the days when regional stock exchanges operated across various Indian cities. The nationwide transition to modern electronic trading platforms now allows retail and institutional investors to access national markets seamlessly from any location, eliminating the geographical exclusivity regional exchanges once enjoyed. The Core Test of Market Liquidity and Commercial Viability Securing regulatory permission requires more than just administrative intent, as sustaining market operations presents a complex commercial challenge. Emphasizing this reality, Pandey remarked that setting up a trading platform is straightforward, but making it genuinely sustainable is another matter. For any market platform to function, trading liquidity is a non-negotiable prerequisite. The promoters behind the exchange must definitively prove that the platform will attract an active and broad customer base capable of executing trades continuously. If SEBI's formal assessment confirms that the Calcutta Stock Exchange can satisfy these structural prerequisites, practical groundwork for reviving the trading floor could move forward. Origins, Peak Volumes, and the April 2013 Trading Halt Established during British rule in 1908, the Calcutta Stock Exchange served as the premier commercial hub of eastern India for decades. Between 1997 and 2000, trading volumes on the exchange reached historic peaks, frequently surpassing activity on BSE and cementing its place among the country's most prominent trading venues. However, the subsequent modernization and nationwide digital expansion of BSE and NSE rapidly altered market dynamics, drawing volume away from regional centers. A critical shift occurred when SEBI revised its governing norms to mandate that all exchanges maintain a distinct, independently recognized clearing corporation for trade clearing and settlement. Lacking a clearing and settlement infrastructure that met these revised directives, trading operations on the Calcutta Stock Exchange were officially suspended in April 2013. Even though no trading has taken place on the floor for 13 years, the exchange has continued to exist within SEBI's regulatory oversight rather than being formally derecognized. Following the West Bengal government's revival proposal, the market regulator's upcoming technical and commercial evaluation will determine whether live market operations can finally return to the exchange. What this means for you A potential revival of the Calcutta Stock Exchange could expand institutional choices and introduce regional competition to India's exchange ecosystem. • Across India: Market participants and brokerage houses nationwide could eventually gain access to an alternative regulated trading venue alongside Mumbai's dominant platforms. This would foster institutional competition and potentially offer diversified clearing and listing avenues. • In West Bengal: Kolkata and the broader eastern commercial zone could witness an influx of financial technology investments and specialized capital market jobs. Regional financial intermediaries and local trading desks could re-engage with a revived home exchange. • Technological Demands: Sustaining live trades will necessitate heavy investments in robust electronic matching engines, low latency connections, and separate clearing institutions. Investors will only participate if the exchange guarantees institutional grade trade execution and reliable settlement. • Liquidity Considerations: Market participants will need to evaluate whether the revived exchange can generate meaningful bid-ask depth. Strong trading volumes will be essential for market participants to execute orders smoothly without encountering price slippage. Why this happened Discussions regarding the revival of the Calcutta Stock Exchange gained traction after the West Bengal government formally approached the markets regulator with a reopening proposal. Multiple regulatory and historical factors form the backdrop of this review. • State Government Initiative: The West Bengal government submitted a formal proposal to SEBI urging the resumption of trading operations at the Calcutta bourse. This official request prompted the regulator to evaluate whether the exchange can operate under present compliance laws. • The 2013 Clearing Framework Mandate: Trading was suspended at the exchange in April 2013 after SEBI required every exchange to operate with a separate, recognized clearing corporation. The lack of an independent clearing and settlement entity directly led to the halt in operations. • Enabling Regulatory Framework: Existing market regulations do not entirely preclude the establishment or revival of an exchange. A platform can be authorized provided it satisfies stringent norms regarding capital adequacy, governance, and electronic infrastructure. • The Need to Prove Sustainability: Because modern digital trading allows market participants to trade nationwide without physical presence, the exchange promoters must prove they can command sufficient liquidity and long-term commercial interest. Questions & Answers 1. Who submitted the proposal to revive the Calcutta Stock Exchange? The West Bengal government submitted the formal proposal requesting the revival of trading at the exchange. 2. What core conditions has SEBI set for granting operational approval? SEBI requires the exchange to demonstrate adequate trading volume, a sustainable business model, required capital adequacy, and the capacity for major technology investments. 3. When and why was trading suspended at the Calcutta Stock Exchange? Trading was halted in April 2013 because the exchange lacked a separate, recognized clearing corporation mandated by updated SEBI regulations. 4. When was the Calcutta Stock Exchange initially founded? The Calcutta Stock Exchange was founded in 1908 during British rule, becoming a primary financial hub for eastern India. 5. Did trading volumes at the Calcutta Stock Exchange ever exceed those of BSE? Between 1997 and 2000, the exchange experienced a period where its trading volumes regularly surpassed those recorded on BSE. 6. Does the Calcutta Stock Exchange still remain under SEBI's regulatory oversight? Yes, despite having no active trading on its floor for 13 years, the exchange has remained under SEBI's regulatory ambit. https://trendkia.com/en/business/calcutta-stock-exchange-men-phira-lauta-sakati-hai-raunaka-sebi-kara-raha-dobara-snchalana-para-vichara-54013 TrendKia — Har trend, sabse pehle.