Calcutta Stock Exchange Revival Depends on Technology and Liquidity, Says SEBI Chief

The revival of the century-old Calcutta Stock Exchange (CSE) will depend on its ability to attract sufficient trading volumes, build a sustainable business model, and make substantial investments in technology, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said on Saturday, October 31, 2026.

Speaking at a session on 'Building India's World Class Capital Market' during the 125th anniversary celebrations of the Bharat Chamber of Commerce in Kolkata, Pandey addressed the West Bengal government's proposal to revive the exchange. Trading at the CSE has been suspended since April 2013 due to regulatory compliance issues.

Responding to queries regarding the state government's initiative, Pandey noted that the existing regulatory framework does not rule out the possibility of setting up new stock exchanges. However, he emphasized that any such proposal must meet prescribed governance and capital requirements.

Pandey cautioned that the market landscape has changed significantly since the era when regional stock exchanges operated across the country. With modern electronic trading, investors can now access markets from anywhere, raising questions about whether historical geographical proximity remains relevant.

'Having an exchange is one thing. But whether you would be able to really make it feasible is another,' Pandey stated. He added that liquidity is a critical consideration for any new exchange, and promoters must demonstrate that enough clients will trade on the platform to sustain operations.

The SEBI chief also highlighted that exchanges require heavy and continuing investments in technology. He noted that these requirements are expected to increase manifold as platforms deal with emerging risks, including those arising from artificial intelligence.

The CSE had previously sought a hold on its exit application in July after the West Bengal government announced its intention to revive the institution in the state budget. Pandey’s remarks underline that while regulatory provisions allow for a new exchange, its commercial viability and ability to compete in a market dominated by the NSE and BSE will ultimately determine its success.

"The cautious stance shared by the SEBI chief highlights the harsh economic realities of operating modern financial infrastructure. In today's digital economy dominated by established national exchanges, regional platforms cannot rely on geography alone. To achieve viability, any revival plan for legacy institutions like the Calcutta Stock Exchange must prioritize robust liquidity, deep technological integration, and agile risk management to compete effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes