The Calcutta Stock Exchange (CSE), once a prominent player in India's financial markets, is charting a course to resume independent operations and reinstate itself as the nation's third equity exchange by March-April 2024. This strategic move comes after nearly a decade of dormancy following regulatory challenges that led to its suspension in April 2013.
CSE's Chief General Manager Dhiraj Chakraborty conveyed the exchange's ambition to reintroduce itself with cutting-edge technology and an expanded suite of trading options, including currency and commodity trading, contingent on receiving the green light from regulatory authorities. The Securities and Exchange Board of India (SEBI) has given encouraging signs that could lead to CSE's comeback, with Chakraborty committing to align with regulatory prerequisites by January.
In the interim, CSE has remained active through a partnership with the National Stock Exchange (NSE), enabling its approximately 400 trading members to continue operations. As it prepares for its re-emergence, the CSE boasts a roster of 1,842 listed companies and maintains a net worth that complies with regulatory standards.
Key stakeholders are cautiously optimistic about the exchange's future. Shareholder Director Abhirup Sarkar highlighted that while there are uncertainties surrounding CSE's independent operations, time will tell if their efforts will bear fruit. The Bombay Stock Exchange (BSE) remains a significant backer of CSE, holding a 4.99% stake, with additional support from the West Bengal Infrastructure Development Finance Corporation Ltd., which owns a 3.37% stake.
The final steps towards CSE's revival hinge on the verdict from the Calcutta High Court and further approvals from SEBI. As the exchange navigates these pivotal moments, it aims not only to reclaim its former glory but also to innovate and adapt to the evolving landscape of India's capital markets.
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