SEBI chief says Calcutta Stock Exchange revival hinges on viability, lists conditions

The chairman of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, said in Kolkata on Saturday that any revival of the Calcutta Stock Exchange (CSE) would depend on whether it could be made viable, setting out the capital, turnover and technology a functioning exchange would need, as Bengal's government pushes to bring the dormant bourse back to life.

"Having an exchange is one thing. But whether you would be able to really make it feasible is another," Pandey said in answer to a question about the state's plan, PTI reported. He added that "existing exchange infrastructure is sufficient to handle larger volumes", suggesting the country did not need another exchange to absorb more trading.

What SEBI expects

According to The Week and PTI, Pandey listed the requirements any exchange must meet. They include a minimum net worth of Rs 100 crore and average annual turnover of Rs 1,000 crore; trading and listing infrastructure with online screen-based trading; surveillance and cybersecurity controls; a nationwide network of trading members; and either its own clearing corporation or an arrangement with an existing one. Promoters would also have to show that enough clients would actually trade on the platform, and be ready for heavy, continuing investment in technology, PTI reported.

He said the CSE must first settle its outstanding liabilities, which was "mandatory", The Week reported, and that it could sell land and hold the proceeds in escrow for this. Asked whether a regional exchange made sense today, he said location "has become much less relevant", since trading is electronic and nationwide.

The remarks were made at a capital-markets event in the city. The CSE's management and the state government had not responded publicly by early Sunday.

Background

The CSE, founded in 1908, was once among India's largest stock exchanges, but trading on it has been suspended since 2013 after SEBI found it had not met regulatory norms. As trading moved to the National Stock Exchange and BSE, regional exchanges across the country closed.

In February 2025 the CSE applied to SEBI for a voluntary exit as an exchange. After the BJP formed the government in Bengal this year, Finance Minister Swapan Dasgupta proposed in his June budget that the exchange be revived. In July the CSE asked SEBI to keep its exit application on hold; its public interest director, Deepankar Bose, told Business Today the exchange was awaiting SEBI's guidance.

In a written answer in the Rajya Sabha on 11 August, Minister of State for Finance Pankaj Chaudhary said SEBI had taken no decision on the exit application and that the CSE "has not submitted any formal proposal for its revival", Business Standard reported. The question had been asked by Samik Bhattacharya, now the state BJP president.

PTI reported that the CSE has sold land, made a profit in 2025-26 and issued bonus shares, which supporters of revival cite as signs that it has the resources to start again.

What happens next

No formal revival plan is yet before the regulator. Any proposal would need SEBI's approval and would have to show how the exchange could attract members and trading volumes away from the two national exchanges, which handle almost all share trading in India. The state's new industrial policy, which the government says will be announced after a review meeting at Nabanna on 5 November, may give a clearer view of how it plans to support the idea.