The 118-year-old Calcutta Stock Exchange is seeking guidance from market regulator Securities & Exchange Board of India (Sebi) on a potential turnaround to resume equity trading operations. According to reports from The Economic Times, the bourse is evaluating various compliance pathways under Sebi regulations and has scheduled a meeting with the market regulator next week to discuss the revival roadmap.
The exchange is considering two primary approaches to resume trading operations. As reported by The Economic Times, if Sebi allows interoperability using clearing operations run by the National Stock Exchange (NSE) or the BSE, it would provide a faster route for the Kolkata-based bourse to resume business. Alternatively, setting up a clearing corporation on its own would take a longer turnaround time and requires more extensive regulatory compliance.
The Calcutta Stock Exchange, which was once the country's second-biggest bourse by trading volumes, faced significant challenges in the past. According to The Economic Times, the exchange was on the brink of an unprecedented default for failure to settle trades in March 2001. West Bengal finance minister Swapan Dasgupta told ET that the government is awaiting the revival roadmap from the CSE management, stating they are in touch with Sebi and would like to first discuss compliance yardsticks before finalising a future roadmap.
The potential revival of the Calcutta Stock Exchange could have significant implications for the broader Indian equity market. As reported by The Economic Times, the exchange's return to operations would add another trading venue to the existing market infrastructure, potentially increasing liquidity and competition in the regional equity markets.
