SEBI Reviews Calcutta Stock Exchange’s Request to Exit Stock Exchange Operations
India’s capital market regulator, Securities and Exchange Board of India (SEBI), is currently examining a proposal submitted by the Calcutta Stock Exchange seeking approval to withdraw from its role as a recognised stock exchange.
The request is part of the exchange’s plan to voluntarily discontinue its stock trading operations after years of inactivity.
Government Confirms Regulatory Review
During a session in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary confirmed that SEBI has begun evaluating the application filed by the Calcutta Stock Exchange.
To conduct a detailed assessment, the regulator has established a dedicated working group. Additionally, an independent valuation firm has been appointed to examine the financial health of the exchange, including the valuation of its assets and liabilities.
The findings from this exercise will help SEBI determine the appropriate regulatory course of action regarding the proposed exit.
Regulator Seeks Additional Clarifications
As part of the review process, SEBI has asked the exchange to provide further information related to its operations and financial structure. The regulator is currently awaiting these details before proceeding to the next stage of evaluation.
Once the assessment is completed, SEBI is expected to issue a formal order addressing several key issues. These include the future of companies that remain exclusively listed on the exchange, the financial standing of the organisation, and any regulatory relaxations that may be required to facilitate the exit process.
Background: Trading Halted Over a Decade Ago
Trading activities on the Calcutta Stock Exchange platform were suspended in April 2013. Since then, the exchange has remained largely inactive.
The organisation formally submitted its request to exit the stock exchange business on February 18, 2025, under SEBI’s regulatory framework that allows exchanges to voluntarily cease operations.
Earlier, the Calcutta High Court granted the exchange additional time through orders issued on February 19, 2024, and August 19, 2024. The extensions were provided to enable the exchange to comply with requirements related to clearing corporation arrangements and minimum net worth under the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
Conclusion
SEBI’s ongoing review will determine whether the Calcutta Stock Exchange can formally exit the stock exchange business. The regulator’s final decision is expected to address regulatory safeguards, financial considerations, and the status of listed companies connected to the exchange.
Disclaimer
This article is based on publicly available information and official statements. The content is intended for informational purposes only. The publication does not independently verify third-party claims or geopolitical assertions mentioned in international developments.