Securities and Exchange Board of India (SEBI) is currently reviewing a proposal submitted by the Calcutta Stock Exchange seeking permission to cease operations as a recognised stock exchange, according to reports.
Regulator Assessing Voluntary Exit Request
Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that SEBI is evaluating the application filed by the Calcutta Stock Exchange to voluntarily exit the stock exchange business.
As part of the assessment process, SEBI has constituted a working group and engaged an independent valuation agency to examine the exchange’s financial position. The agency will determine the value of the organisation’s assets and liabilities to support the regulatory review.
Further Information Sought by the Regulator
The regulator has also requested additional details from the Calcutta Stock Exchange and is awaiting the required information before advancing the evaluation process.
Once the review is completed, SEBI will issue a formal order addressing key aspects such as the status of companies exclusively listed on the exchange, the financial position of the exchange, and any regulatory concessions that may be necessary to facilitate the proposed exit.
Background of the Proposal
Trading on the Calcutta Stock Exchange platform had already stopped in April 2013. The exchange formally applied for voluntary exit under SEBI’s exit framework for stock exchanges through a letter submitted on February 18, 2025.
Earlier, the Calcutta High Court had granted additional time to the exchange through orders issued on February 19, 2024, and August 19, 2024. The extension allowed the exchange to meet regulatory requirements related to clearing corporation arrangements and minimum net worth under the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
Summary:
SEBI is reviewing the Calcutta Stock Exchange’s request to voluntarily exit the stock exchange business. A working group and independent valuation agency have been appointed to assess the exchange’s financial position, while the regulator awaits additional information before issuing a final order on the proposal.
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