Once BSE Rival, Calcutta Stock Exchange May See Its Last Diwali: What Led 117-Year-Old Bourse to Its Exit?

The 117-year-old Calcutta Stock Exchange, which was once seen as a rival of the Bombay Stock Exchange (BSE) is in the final stages of its voluntary exit as a bourse. As a result, the CSE may see its last Diwali this year, on Monday, October 20.

The century-old CSE is struggling for over a decade, since trading on CSE was suspended by the Securities and Exchange Board of India (SEBI) in 2013 following non-regulatory compliances. While exchange earlier planned to contest SEBI directives in court, there could be no favourable decision till last year. In December, 2024, CSE's board decided to withdraw its pending cases in the Calcutta High Court and the Supreme Court. Later, CSE's board applied for voluntary exit.

What Led Calcutta Stock Exchange (CSE) In Trouble?

The notorious, Ketan Parekh-linked scam triggered a payment crisis at the Calcutta Stock Exchange. The Rs 120 crore scam resulted in a massive failure of payment at the Calcutta Stock Exchange as many brokers defaulted on settlement obligations, reported news agency PTI.

CSE couldn't handle the trouble and the episode shattered investor and regulator's confidence, resulting in a prolonged erosion of trading activity.

A nostalgic mood now prevails among the few members as CSE prepares for its last festive celebration as an independent bourse.

Stock Brokers Bid Adieu To CSE

"We began each day with a prayer to Goddess Lakshmi before trading till April 2013 when trading was suspended by the regulator. This Diwali feels like a farewell to that legacy," a veteran stock broker Siddharth Thirani told PTI.

As CSE is preparing for its phased out exit from the bourses, the exchange launched a Voluntary Retirement Scheme for all employees. As per PTI, CSE is offering a one-time payout of Rs 20.95 crore which will have an annual savings of around Rs 10 crore. All employees opted for the scheme, with some retained on contract for compliance work.

Once SEBI approves the exit, CSE will transition into a holding company. Its subsidiary, CSE Capital Markets Pvt Ltd, will continue brokerage activities as a member of NSE and BSE. The regulator has also sanctioned the sale of CSE's three-acre property on EM Bypass to Srijan Group for ₹253 crore. This transaction is expected post-exit approval.

Calcutta Stock Exchange: End Of An Era

Established in 1908, CSE was once a formidable competitor to the Bombay Stock Exchange in terms of trading volumes. It symbolised Kolkata's financial legacy but began declining after a Rs 120-crore scam linked to Ketan Parekh caused a payment crisis. A sense of nostalgia now surrounds remaining members as they prepare for their last festive celebration as an independent bourse.