BJP-Led Bengal Govt Moves To Revive Historic Calcutta Stock Exchange

The historic Calcutta Stock Exchange (CSE), which has remained inactive for more than a decade, could be headed for a revival as the BJP-led West Bengal government explores plans to restore the institution and strengthen the state's financial ecosystem. The proposal was highlighted during the presentation of the 2026-27 state budget, where the government outlined its intention to revive the exchange as part of a broader strategy to attract investment, generate employment and reinforce Kolkata's status as a key financial centre in eastern India.

Presenting the budget in the West Bengal Legislative Assembly on Monday, Finance Minister Swapan Dasgupta said the revival of the 118-year-old exchange would align with the government's vision of a developed Bengal and a developed India. He noted that the Calcutta Stock Exchange, once one of the country's most important financial institutions, has faced years of operational and regulatory challenges that have limited its ability to function effectively in modern capital markets.

The exchange was suspended by Securities and Exchange Board of India in 2023 after failing to meet several regulatory requirements, including maintaining adequate trading activity and robust clearing and settlement mechanisms. The suspension was later upheld through legal proceedings, leaving the future of the institution uncertain. Regulatory authorities had also raised concerns regarding governance standards, compliance shortcomings and outdated technological infrastructure.

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Despite these setbacks, the state government believes the exchange can still play a meaningful role in regional economic development. According to Dasgupta, reviving the CSE could provide businesses in eastern India with easier access to capital, reduce listing and trading costs and create new employment opportunities. He argued that restoring the exchange would help Kolkata reclaim some of the financial prominence it enjoyed in earlier decades and encourage greater private-sector participation in the state's economy.

The possibility of revival remains open because the exchange's regulatory status has not yet been fully resolved. After years of legal disputes with SEBI, the Calcutta Stock Exchange submitted an application in February 2025 seeking a voluntary exit from its status as a recognised stock exchange. However, final approval for that exit has not yet been granted by the regulator, leaving room for alternative options, including a potential restructuring and revival plan.

The proposal forms part of a wider economic agenda announced by the new state government, which has also outlined infrastructure and employment-focused initiatives in the latest budget. While significant regulatory, technological and operational hurdles remain before any revival can take place, the government's announcement has renewed attention on the future of one of India's oldest stock exchanges and its potential role in strengthening the financial landscape of eastern India.

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