Calcutta Stock Exchange Celebrates Final Diwali as India’s Oldest Bourse Closes Forever
Iconic bourse ends 117-year legacy with voluntary exit.
Kolkata's Calcutta Stock Exchange (CSE), one of India's oldest bourses, may mark its final Diwali on October 20, 2025, as it nears the end of its journey as a functioning stock exchange. After a decade-long legal struggle, the 117-year-old institution is poised to exit the bourse business following regulatory challenges and a significant decline in operations.
The Securities and Exchange Board of India (SEBI) suspended trading at CSE in April 2013 due to non-compliance with regulations. Despite efforts to revive operations and legal battles in the Calcutta High Court and Supreme Court, the exchange has opted for a voluntary exit. On April 25, 2025, shareholders approved the exit plan during an Extraordinary General Meeting (EGM). CSE submitted its exit application to SEBI, which has appointed Rajvanshi & Associate to conduct a valuation, the final step before formal approval.
Post-exit, CSE will transition into a holding company, while its wholly-owned subsidiary, CSE Capital Markets Pvt Ltd (CCMPL), will continue broking operations as a member of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). Additionally, SEBI has greenlit the sale of CSE’s three-acre property on EM Bypass to the Srijan Group for Rs 253 crore, to be finalized after the exit approval.
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Founded in 1908, CSE was once a powerhouse rivaling the Bombay Stock Exchange, with 1,749 listed companies and 650 registered trading members. However, a Rs 120-crore scam linked to Ketan Parekh in the early 2000s triggered a payment crisis, leading to broker defaults and a loss of confidence among investors and regulators. This marked the beginning of the exchange’s decline, culminating in the suspension of trading activities.
In preparation for its closure, CSE introduced a Voluntary Retirement Scheme (VRS) for all employees, costing Rs 20.95 crore but expected to save Rs 10 crore annually. All employees opted for the scheme, with some retained on contract for compliance tasks. Chairman Deepankar Bose, who received Rs 5.9 lakh in director’s fees in FY25, reflected in the annual report on CSE’s significant role in India’s capital markets.
As Diwali approaches, a bittersweet mood envelops the exchange. Veteran broker Siddharth Thirani reminisced about the vibrant trading floor at Lyons Range, where daily prayers to Goddess Lakshmi preceded trading sessions until 2013. “This Diwali feels like a farewell to our legacy,” he said, capturing the nostalgia surrounding the bourse’s final festive celebration.
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