**Kolkata, October 20, 2025** — This Diwali, the historic Calcutta Stock Exchange (CSE) will light up not just with festive lamps, but also with the poignant glow of a farewell. One of India's oldest bourses, the CSE is set to mark its last Kali Puja and Diwali as a functioning exchange, concluding a remarkable 117-year journey through India's financial landscape. T^{[1][2][3][4][5]}his symbolic end comes as the exchange nears a voluntary exit from its role as an independent trading platform, a decision made after a decade of suspended trading and persistent regulatory challenges. ^{[6][1][2][3][4][5]}For over a century, the iconic building at Lyons Range was a bustling hub, a symbol of Kolkata's financial prowess. Now, with shareholder approval granted in April 2025 for its voluntary exit, the CSE is transitioning into a holding company, marking a significant shift in India's capital markets. ^{[6][1][2][3][4]}### The Full Story The story of the Calcutta Stock Exchange began long before its formal incorporation. As early as the 1830s, informal stock trading took place under a neem tree in Calcutta, dealing in British East India Company loan stocks. T^{[7][8][9][10][11]}he official Calcutta Stock Exchange Association was then established in May 1908 with 150 members, eventually moving into its present grand building on Lyons Range in 1928. F^{[7][8][9][10]}or decades, it thrived, even rivaling the Bombay Stock Exchange in trading volumes and listing over 3,500 companies at its peak. ^{[8][9][10][12]}But here's the thing: the CSE's fortunes began to turn in the early 2000s. A major blow came with the infamous Ketan Parekh scam, which triggered a payment crisis of approximately ₹120 crore. Thi^{[1][2][3][13][4][5][12]}s crisis led to numerous brokers defaulting on their settlement obligations, severely eroding both investor and regulator confidence. Wh^{[1][2][3][4][5][12]}at's more, the Securities and Exchange Board of India (SEBI) introduced stricter regulations for regional stock exchanges (RSEs) in 2012. Una^[8]ble to comply with these evolving norms, SEBI suspended trading on the CSE's C-STAR platform in April 2013. Thi^{[14][6][1][2][3][15][4][5][12]}s effectively halted all independent trading activity on the exchange. For over a decade, the CSE pursued legal battles and attempted to revive its operations, hoping to regain its past glory. Ho^{[6][1][2][3][4]}wever, the tide had turned. In December 2024, the CSE board decided to withdraw all pending cases from the Calcutta High Court and the Supreme Court, opting instead for a voluntary exit. A f^[6][2][3][5]ormal application for this exit was submitted to SEBI on February 18, 2025, and shareholders overwhelmingly approved the decision during an Extraordinary General Meeting (EGM) on April 25, 2025. Cur^{[6][1][2][3][4][12]}rently, SEBI has appointed a valuation agency, Rajvanshi & Associate, to complete the final procedural step before granting formal exit approval. The^[6][1][3] regulator has also given the green light for the sale of the CSE's three-acre property on EM Bypass to the Srijan Group for ₹253 crore, a transaction that will be finalized after the exit. ### ^{[6][1][2][3][4]}What This Means For the handful of veteran brokers who remember the vibrant trading floor, this Diwali brings a wave of nostalgia. As veteran stockbroker Siddharth Thirani shared, "We began each day with a prayer to Goddess Lakshmi before trading till April 2013. This Diwali feels like a farewell to that legacy." This ^[1][2][3][5]sentiment captures the human impact of an institution that was once a daily part of their lives. Once SEBI grants its final approval, the Calcutta Stock Exchange will cease to operate as a stock exchange. Instead, it will transform into a holding company. Its wholly-owned subsidiary, CSE Capital Markets Pvt Ltd (CCMPL), will continue to offer broking services as a member of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). This ^{[6][1][2][3][4]}means that while the CSE's direct trading platform is gone, its legacy in facilitating capital market access will continue in a new form. To manage the transition, the exchange also implemented a Voluntary Retirement Scheme (VRS) for all its employees, offering a one-time payout of ₹20.95 crore, which is expected to save the company around ₹10 crore annually. Most staf^[6][2][5]f accepted the offer, with a few retained on contract for compliance duties. **Key Po^[6][5]ints:** * The Calcutta Stock Exchange (CSE) is celebrating its last Diwali as a functioning bourse on October 20, 2025. * Tradi^{[6][1][2][3][4][5]}ng on the CSE's own platform was suspended in April 2013 due to non-compliance with SEBI regulations. * Share^{[14][6][1][2][3][15][4][5][12]}holders approved the voluntary exit on April 25, 2025, after a decade-long legal battle. * The e^{[6][1][2][3][4][12]}xchange's decline was significantly impacted by the ₹120 crore Ketan Parekh scam in the early 2000s. * CSE wil^{[1][2][3][13][4][5][12]}l become a holding company, with its subsidiary, CSE Capital Markets Pvt Ltd, continuing broking services on NSE and BSE. * The sal^{[6][1][2][3][4]}e of its three-acre EM Bypass property for ₹253 crore has been cleared by SEBI. ### The Bigg^{[6][1][2][3][4]}er Picture The story of the Calcutta Stock Exchange isn't unique. Its eventual exit is part of a larger trend that has seen many regional stock exchanges across India struggle and eventually close down. Stricter regu^{[7][8][14][13]}lations by SEBI and the rise of powerful national exchanges like the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) made it incredibly difficult for smaller, regional players to compete and meet compliance standards. The CSE, once^{[8][14][13][16]} the second-largest bourse in India, symbolizes a bygone era when local markets held immense sway. Its transform^[10][16]ation reflects the centralization and modernization of India's financial markets. ### What Happens Next? The immediate next step is SEBI's final approval of the voluntary exit, which will come after the valuation process is completed. Once approved, the Calcutta Stock Exchange will formally cease to be a recognized stock exchange. However, its subsidiary, CSE Capital Markets Pvt Ltd, will continue its broking operations, ensuring that the legacy of market participation from Kolkata endures, albeit through a different channel. Investors and market watchers will be keenly observing how the transition unfolds and what new avenues the holding company might explore in the future. This Diwali, as lights twinkle across Kolkata, they will shine brightly on the enduring spirit of commerce, even as one of its oldest institutions takes its final bow as a stock exchange, making way for a new chapter in India's dynamic financial story.