India’s second-oldest bourse is attempting an audacious comeback from the brink of liquidation. After applying for a voluntary exit in February 2025, the Calcutta Stock Exchange (CSE) has abruptly pressed ‘pause’, triggered by a budget proposal from West Bengal’s newly elected Bharatiya Janata Party (BJP) government. The State’s planned revival of the 118-year-old exchange — where trading remains frozen since 2013 — seeks to challenge Mumbai’s monopoly and position Kolkata as a major capital markets hub for eastern and north-eastern India. But first it must convince a sceptical Securities and Exchange Board of India (SEBI) — the capital market regulator, and rewrite the rules of regional trading.

Can a regional exchange survive in an era dominated by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)? How does the city’s financial community view this development?

Chartered accountant Binay Kumar Agarwal, who was a broker with CSE since 1996, says a new business model can create a “vibrant” exchange. “If the country can create power, bond, and carbon exchange platforms, we can also build a new model to revive CSE,” he says. Many brokers share his view that the “double-engine” government — namely BJP-led Centre and State — may infuse new life into the exchange.

Following the demutualisation scheme enforced by SEBI in 2007, brokers’ shareholding in CSE stands at around 49 per cent, while around 51 per cent of the equity shares are held by corporate shareholders (non-trading members). Within the corporate shareholding segment, the BSE and the West Bengal Infrastructure Development Finance Corporation (WBIDFC) hold 4.99 per cent and 3.38 per cent, respectively.

The city’s industrialists and its small and medium businesses are enthusiastic about the revival plan.

“The Calcutta Stock Exchange is an enduring symbol of India’s financial heritage and Kolkata’s historic leadership as a centre of commerce and enterprise. Its proposed revival is an encouraging step towards strengthening eastern India’s capital market ecosystem, widening access to capital, and creating new opportunities for businesses and investors alike. We look forward to seeing this proud institution reclaim its place in India’s growth story,” says Aditya Vardhan Agarwal, Director, Emami Group.

Mamta Binani, president of MSME Development Forum (West Bengal and North-East), says the CSE’s revival can foster entrepreneurship, especially among women, by providing the region’s micro, small and medium enterprises (MSMEs) a platform to raise capital at a lower cost and gain a competitive edge. MSMEs would be able to nurture themselves better as they will only need to compete with companies in the east, rather than a bigger pool countrywide, she adds.

Certainly there are advantages, as pointed out by West Bengal Finance Minister Swapan Dasgupta in his Budget speech: “The revival of the Calcutta Stock Exchange would have multifarious advantages, including easier access to capital for eastern India, lower costs of listing and trading, and create new jobs.”

But revival is easier said than done. There is no policy currently for the reopening of a regional stock exchange. CSE must wait for SEBI’s nod, which would depend on a credible revival plan.

B Madhav Reddy, former managing director and CEO of CSE, sees it as a formidable challenge. With all employees removed, existing arrangements with the NSE and BSE ended, and most of the major listed companies migrating to the bigger national exchanges, CSE must rebuild its institutional and operational capabilities from the ground up.

According to Reddy, the immediate priority is to build a dedicated team capable of developing a credible business model for the exchange. “Reconstituting and broadening the board, inducting professionals with relevant market and technology expertise, and securing the confidence and support of existing shareholders would be critical first steps,” he says.

One potential route to revival, he suggests, would be a strategic partnership or merger with the Metropolitan Stock Exchange of India (MSE), formerly the Multi Commodity Exchange-Stock Exchange (MCX-SX), given its presence in western India.

“Such a partnership could provide CSE with access to infrastructure, technology and market expertise while creating a meaningful east–west financial market linkage between Kolkata and Mumbai,” he says.

“The revival of the Calcutta Stock Exchange is certainly possible, but it will be both operationally demanding and commercially challenging. While regulatory approval from SEBI is an important milestone, the true test will be in rebuilding liquidity and creating a sustainable ecosystem that attracts brokers, investors and issuers,” says Daman Juneja, Partner-IPO Advisory and Financial Reporting, Nangia Global.

History shows that bourses succeed only by consistently attracting trading activity.

“Today, the NSE and BSE collectively account for virtually the entire equity trading ecosystem in India. Even if CSE resumes operations, persuading investors, traders and institutions to route orders through another exchange will be extremely difficult without existing liquidity,” Juneja points out.

Moreover, the CSE would need to establish a clearing and settlement mechanism compliant with SEBI’s current regulatory framework, either on its own or through strategic partnerships. Reliable post-trade infrastructure is fundamental to market integrity. Also, substantial and ongoing investments are essential to maintaining market confidence.

“Any meaningful revival would require alignment among CSE’s diverse stakeholders on governance, capital infusion and long-term strategic direction,” Juneja adds.

Despite the challenges, several factors could work in CSE’s favour: strong government support, potential to emerge as the capital market hub for eastern and north-eastern India, and a differentiated focus on regional enterprises. But the ultimate test would be in turning political willpower into daily market momentum.

Published on September 14, 2026