Calcutta Stock Exchange (CSE), was founded in 1908 at 2, China Bazar Street, Kolkata under a neem tree, however the present building at Lyons Range was constructed in 1928, it acted as a pivot in the economic landscape of eastern India, and for a certain period the CSE was a leading stock exchange in the country and was also a rival to the Bombay Stock Exchange.
Why is CSE shutting down?
In April 2013, SEBI (Securities and Exchange Board of India) suspended trading at CSE over non-compliance with regulations. However, the exchange tried to deal with the obligations and strived hard to restart its operations, but nothing could help CSE regain its lost glory.
The exchange has submitted a voluntary exit application to SEBI, which has also received approvals from the shareholders, and the entire process is nearing its completion.
Once the exit approval is sanctioned by the Securities and Exchange Board of India, the CSE would continue to hold its broking membership with the BSE and NSE through its holding company, CSE Capital Markets Pvt Ltd (CCMPL). SEBI has also approved the sale of CSE’s three-acre EM Bypass property to the Srijan Group for rupees 253 crore, which would process after SEBI’s nod, cited by The Times of India.
CSE’s decline started after the rupees 12-crore Ketan Parekh scam, which weakened the investors’ confidence.
Veteran stockbroker Siddharth Thirajni said, “We began each day with a prayer to Goddess Lakshmi before trading till April 2013 when trading was suspended by the regulator. This Diwali feels like a farewell to that legacy,” per The Times of India.
For many who have been associated with the Calcutta Stock Exchange, today’s final Diwali is not an enjoyable occasion, but a moment to remember the past of an institution that was once the heartbeat of Kolkata’s financial district. The dimming of the lights at the Calcutta Stock Exchange shows not just the closure of the market, but an end to a significant chapter in India’s economic heritage.