West Bengal Government Backs Revival Of Calcutta Stock Exchange To Reclaim Financial Hub Status

West Bengal's finance minister Swapan Dasgupta put the revival of the Calcutta Stock Exchange (CSE) at the centre of his maiden budget speech on Monday.

Presenting the BJP-led government's first budget for 2026-27, he said the state would back efforts to bring the 118-year-old exchange back to life, with the stated goal of restoring Kolkata's position as a major financial centre.

CSE: A Long Dormant Institution

The Calcutta Stock Exchange has had no trading activity for more than 13 years. The Securities and Exchange Board of India (SEBI) suspended it in 2023 after the exchange failed to meet basic regulatory requirements, including sufficient trading volumes and functioning clearing and settlement systems. The suspension was held up in court.

By February 2025, the exchange had applied for voluntary exit from its status as a recognised stock exchange. SEBI has not yet ruled on that application, which means a revival remains legally possible.

The exchange's problems go back further than the suspension. The regulator had flagged poor governance, compliance failures and outdated technology infrastructure as persistent concerns. Any revival would need to address these directly before trading could resume.

The Case For Revival

Dasgupta made the case for revival on practical grounds. He said bringing the exchange back would widen access to capital for businesses in eastern India, reduce the cost of listing and trading, and generate employment. He framed these as concrete economic benefits rather than a purely symbolic gesture.

The announcement fits into the new government's broader agenda of positioning West Bengal as an investment destination, with references to the Viksit Bharat and Viksit Bengal frameworks cited in the budget speech.

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PSU Listings Also In The Works

Separately, the finance minister said the government intends to list profit-making state public sector undertakings (PSUs) on public stock exchanges. Eligible PSUs are yet to be identified, but the government's stated intent is to raise capital through disinvestment and surface the underlying value of these companies.

Whether the CSE revival moves beyond a budget announcement will depend on SEBI's response, the resolution of long-standing compliance issues and the exchange's ability to build the governance and technology infrastructure needed to function as a regulated market.

Sources:

The Economic Times

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