Calcutta Stock Exchange

The Calcutta Stock Exchange (CSE) is a historic securities exchange based in Kolkata, India. It traces organized securities dealing in the city to the nineteenth century and is commonly described as one of Asia’s oldest stock exchanges. Its institutional history includes an initial exchange established in 1863, followed by a reconstitution in 1908 that created the form of the exchange associated with its modern identity. The exchange’s present building at Lyons Range was completed in 1928, reflecting Kolkata’s importance as a commercial and financial center during the colonial period. The exchange developed from an open-outcry market into an electronically operated venue. It used traditional floor-based trading for much of its history and introduced C-STAR, or CSE Screen Based Trading and Reporting, in 1997. This transition was intended to modernize order handling and reporting and to align the exchange with the broader technological transformation of Indian securities markets. The CSE later established a strategic relationship with the Bombay Stock Exchange, which acquired a 5% stake in 2007. The exchange’s history also includes a major market-integrity crisis. In 2001, the CSE was significantly affected by the stock-price manipulation associated with Ketan Parekh and his associates. Securities listed on the exchange were among those affected by the manipulation, causing substantial damage to the institution’s reputation and operations. The episode formed part of a wider period of scrutiny of Indian securities-market practices and exchange controls. The CSE’s current position is defined by regulatory suspension and the absence of regular trading. Since 2013, there has been no trading on the CSE trading platform. The Securities and Exchange Board of India (SEBI) suspended the exchange after determining that it had not complied with applicable regulatory requirements. The exchange was subsequently asked to exit under SEBI’s policy for regional stock exchanges. The exit issue has remained subject to proceedings before the Calcutta High Court, making the CSE’s final institutional status legally unsettled in the available reference material. Although the exchange no longer functions as an active trading venue, it remains a notable part of India’s financial history and Kolkata’s commercial heritage. It has been described as the third-largest bourse in India in historical or comparative accounts, but that description does not indicate current trading activity. In the 2026–27 state budget process, the Government of West Bengal proposed reviving the CSE, indicating continuing political and regional interest in preserving or reactivating the institution. Whether such a revival can occur depends on regulatory, legal, and operational developments.

The history of the Calcutta Stock Exchange is connected with Kolkata’s early role in Indian commercial and financial activity. Securities dealings were reportedly conducted in the city as early as 1830, when market participants gathered under a neem tree. Early transactions included dealings in the loan stock of the British East India Company, providing an antecedent to the more formal exchange institutions that followed. A formal exchange was established on 1 December 1863 by sixteen leading stockbrokers. It initially operated from rented premises at 11 Strand Road. The premises included a library that members of the public could use after paying an admission fee, illustrating the exchange’s broader role as a commercial institution as well as a marketplace for securities. In 1908, the exchange was reconstituted in a form that became the basis of the modern Calcutta Stock Exchange, with 150 members at that time. The exchange’s present building at Lyons Range was constructed in 1928. Its location placed it within Kolkata’s established business district and linked the institution with the city’s longstanding commercial infrastructure. Government recognition under India’s securities laws developed later: the Calcutta Stock Exchange Ltd received permanent recognition from the Government of India effective 14 April 1980 under the Securities Contracts (Regulation) Act, 1956. For most of its earlier operating history, trading followed the open-outcry model. The exchange modernized its operations in 1997 by replacing open outcry with C-STAR, an electronic trading platform whose name stood for CSE Screen Based Trading and Reporting. This change formed part of the broader shift in Indian securities markets toward screen-based trading, improved reporting, and more standardized electronic market access. The exchange was severely affected by the securities-market manipulation associated with Ketan Parekh in 2001. Parekh and associates manipulated the prices of stocks listed on the CSE, and the resulting damage contributed to scrutiny of the exchange and its controls. In 2007, the Bombay Stock Exchange made a strategic investment by acquiring a 5% shareholding in the CSE. The CSE’s operating history changed decisively after regulatory action in the 2010s. Trading on its platform stopped in 2013, and SEBI suspended the exchange for failure to comply with regulatory norms. SEBI subsequently sought the exchange’s exit under its policy for regional stock exchanges. The exit question has been challenged or otherwise remained before the Calcutta High Court, so the available reference material does not establish a final legal dissolution or a definitive active status. The exchange therefore occupies an unusual position: historically important, legally continuing in some form, but without trading activity on its platform since 2013. In the 2026–27 budget process, the Government of West Bengal proposed reviving the CSE. That proposal indicates that the institution continues to have regional symbolic and economic significance, although the reference material does not establish that trading has resumed or that the proposal has been implemented.

• 2026

  Proposed revival

  [1]Calcutta Stock Exchangeen.wikipedia.org

  The Government of West Bengal proposed reviving the exchange during the fiscal 2026–27 budget process.

• 2013

  Trading suspended

  [1]Calcutta Stock Exchangeen.wikipedia.org

  SEBI suspended the exchange after regulatory non-compliance, and trading on the CSE platform ceased.

• 2007

  Bombay Stock Exchange investment

  [1]Calcutta Stock Exchangeen.wikipedia.org

  The Bombay Stock Exchange acquired a 5% strategic stake in the CSE.

• 2001

  Market-manipulation crisis

  [1]Calcutta Stock Exchangeen.wikipedia.org

  The exchange was significantly affected by stock-price manipulation associated with Ketan Parekh and his associates.

• 1997

  Electronic trading introduced

  [1]Calcutta Stock Exchangeen.wikipedia.org

  The CSE replaced open-outcry trading with its C-STAR screen-based electronic trading and reporting platform.

• 1980

  Permanent government recognition

  [1]Calcutta Stock Exchangeen.wikipedia.org

  Permanent recognition by the Government of India took effect on 14 April 1980 under the Securities Contracts (Regulation) Act, 1956.

• 1928

  Lyons Range building completed

  [1]Calcutta Stock Exchangeen.wikipedia.org

  The exchange’s present building at Lyons Range was constructed.

• 1908

  Exchange reconstituted

  [1]Calcutta Stock Exchangeen.wikipedia.org

  The exchange was reconstituted in its modern institutional form and had 150 members.

• 1863

  Formal exchange established

  [1]Calcutta Stock Exchangeen.wikipedia.org

  Sixteen leading stockbrokers established a formal exchange on 1 December 1863 at rented premises on 11 Strand Road.

• 1830

  Early securities dealing in Kolkata

  [1]Calcutta Stock Exchangeen.wikipedia.org

  Securities dealings in Kolkata were reportedly conducted under a neem tree, with early transactions including British East India Company loan stock.

A historic Kolkata-based regional securities exchange with deep roots in India’s capital-market development. Historically positioned as an important Indian bourse and later as an electronically enabled regional exchange; currently defined by suspended trading, regulatory proceedings, and a proposed revival.

• Electronic trading platform · 1997

  C-STAR

  C-STAR, short for CSE Screen Based Trading and Reporting, was the exchange’s electronic trading and reporting platform. Introduced in 1997, it replaced the open-outcry system and represented the CSE’s transition to screen-based securities-market operations.

• Stock exchange

  Calcutta Stock Exchange trading venue

  The CSE provided a marketplace and related infrastructure for trading securities listed on the exchange. Its historical operations included open-outcry trading and later electronic trading through C-STAR. No trading has taken place on the CSE trading platform since 2013.

• 2001

  Ketan Parekh stock-manipulation episode

  The CSE was significantly damaged after Ketan Parekh and associates manipulated the prices of stocks listed on the exchange. The episode contributed to scrutiny of the exchange’s market controls and regulatory compliance.

  Source

Read more

• 2026

  Proposed revival of the exchangeStrategy

  Background

  The CSE remains historically important to Kolkata, but its trading platform has been inactive since 2013 and its regulatory position remains unsettled.

  Action taken

  The Government of West Bengal proposed reviving the exchange in the fiscal 2026–27 budget process.

  Aftermath

  The reference material does not establish that the proposal has been implemented or that trading has resumed.

  Source

• 2013

  Suspension following regulatory non-complianceOther

  Background

  SEBI found that the exchange had not complied with applicable regulatory norms.

  Action taken

  SEBI suspended the CSE and subsequently sought its exit under the regional-stock-exchange exit policy.

  Aftermath

  No trading has occurred on the CSE platform since 2013. The proposed exit has remained subject to proceedings before the Calcutta High Court.

  Source

• 2007

  Strategic investment by the Bombay Stock ExchangeM&A

  Background

  The CSE sought strategic integration or cooperation within India’s changing exchange landscape.

  Action taken

  The Bombay Stock Exchange acquired 5% of the Calcutta Stock Exchange.

  Aftermath

  The investment created a formal strategic relationship between the two exchanges.

  Source

• 1997

  Replacement of open outcry with electronic tradingStrategy

  Background

  Indian securities markets were moving toward electronic execution and screen-based reporting.

  Action taken

  The CSE introduced C-STAR and replaced its open-outcry trading system.

  Aftermath

  The exchange adopted electronic trading infrastructure, although its platform later ceased trading in 2013.

  Source

• 2026

  West Bengal proposes revival of the Calcutta Stock Exchange[1]Calcutta Stock Exchangeen.wikipedia.org

  Other

  During the state budget process for fiscal year 2026–27, the Government of West Bengal proposed reviving the CSE.

• 2013

  SEBI suspends Calcutta Stock Exchange[1]Calcutta Stock Exchangeen.wikipedia.org

  Regulation

  The Securities and Exchange Board of India suspended the CSE after it failed to comply with regulatory norms. No trading has taken place on the exchange’s platform since 2013.

• 2007

  Bombay Stock Exchange takes a strategic stake in CSE[1]Calcutta Stock Exchangeen.wikipedia.org

  M&A · Other

  The Bombay Stock Exchange acquired 5% of the Calcutta Stock Exchange as part of a strategic investment.

• CSE exit remains before the Calcutta High Court[1]Calcutta Stock Exchangeen.wikipedia.org

  Regulation · Lawsuit

  The exchange has been asked to exit under SEBI’s regional-stock-exchange exit policy, but the matter remains sub judice before the Calcutta High Court.

1. 1Calcutta Stock Exchangeen.wikipedia.org
2. 2Calcutta Stock Exchange official websitecse-india.com