What’s inside:
This article provides information about the closure of the Calcutta Stock Exchange (CSE) and its historical significance in India’s financial market.
The Calcutta Stock Exchange (CSE), one of the oldest stock exchanges in India, is set to close permanently after Diwali in 2025. This exchange was established in 1908 and has played a significant role in the financial landscape of India.
The decision to shut down comes after getting approval from the Securities and Exchange Board of India (SEBI). The CSE will voluntarily exit market operations due to ongoing losses and limited business prospects.
As part of this process, CSE will sell three acres of land in Kolkata to the Srijan Group for Rs 253 crore. Additionally, the exchange has introduced a Voluntary Retirement Scheme for its employees, providing a total of Rs 20.95 crore in payouts.
Key points include: 1) CSE was a major competitor to the Bombay Stock Exchange. 2) Trading was banned by SEBI in April 2013. 3) The exchange’s activities have significantly declined since the Ketan Parekh scam in 2001. 4) CSE’s subsidiary, CSE Capital Markets Pvt Ltd, will continue its brokerage business. 5) The official exit application was submitted to SEBI in February 2025.
Looking ahead, the exit process will be carried out with SEBI’s final review and approval. The closure marks a significant moment in the history of Indian stock markets, reflecting both an end of an era and a shift towards market reforms.
Summary:
- The Calcutta Stock Exchange will close after Diwali 2025.
- SEBI has approved the voluntary exit from market operations.
- CSE will sell land for Rs 253 crore as part of its exit.
- Employees will receive Rs 20.95 crore through a retirement scheme.
- CSE Capital Markets Pvt Ltd will continue its business despite the closure.
