West Bengal government has announced support for reviving the 118-year-old Calcutta Stock Exchange in its 2026–27 budget, aiming to restore Kolkata’s financial legacy, improve capital access in eastern India and strengthen employment generation prospects.
The historic Calcutta Stock Exchange (CSE), once a key pillar of India’s financial ecosystem, is set to receive a potential lifeline as the West Bengal government has announced plans to support its revival. The exchange, which has remained inactive for over a decade, could now be poised for a comeback under the state’s broader economic vision.
Presenting the 2026–27 state budget, Finance Minister Swapan Dasgupta said the government is committed to restoring the legacy institution as part of its long-term development agenda. He linked the initiative to the vision of building a “Viksit Bengal” alongside the national goal of “Viksit Bharat”.
According to the finance minister, reviving the 118-year-old exchange could help re-establish Kolkata as a major financial hub in eastern India. He noted that the exchange has faced prolonged challenges, including regulatory and legal issues, which led to its prolonged inactivity.
Dasgupta emphasised that a successful revival could bring multiple economic benefits. These include improved access to capital for businesses in eastern India, reduced costs of raising funds, and the creation of new employment opportunities in the financial sector. He added that strengthening such institutions would enhance investor confidence in the region.
Exchange seeks revival amid long dormancy
The government’s announcement comes in the wake of renewed efforts by the Calcutta Stock Exchange itself to resume operations. Recently, representatives of the exchange met state Industry Minister Tapas Roy, urging support to prevent permanent closure.
In its communication to the government, the exchange reportedly expressed its intention to withdraw its earlier application for voluntary exit submitted to the Securities and Exchange Board of India (SEBI). Instead, it has sought assistance to restart trading operations and rebuild institutional capacity.
The CSE has remained shut since April 2013, when SEBI suspended its trading activities due to compliance and governance concerns, along with outdated technological systems. Over the years, prolonged legal and regulatory proceedings eventually led the exchange to consider exiting the stock exchange framework in 2025. However, a final decision from SEBI is still pending, leaving scope for reconsideration.
Challenges ahead for a comeback
Despite the optimism surrounding the announcement, experts believe the revival of CSE will be a complex task. India’s financial markets have evolved significantly, with modern exchanges relying on advanced digital infrastructure, high-end cybersecurity systems, and robust settlement mechanisms.
To restart operations, the exchange would need substantial investment and strict compliance with current regulatory standards. This includes upgrading technology, strengthening governance frameworks, and ensuring operational transparency.
Supporters of the move argue that a revived regional exchange could play an important role in supporting small and medium enterprises in eastern India by providing easier access to capital. It could also contribute to broader economic development in the state.
While challenges remain significant, the West Bengal government’s backing has revived hopes for one of India’s oldest financial institutions, giving the Calcutta Stock Exchange a renewed chance at survival and relevance in a modern financial landscape.
