The Bengal government has lent its support for the revival of the century-old Calcutta Stock Exchange (CSE), arguing that it could help improve access to capital for enterprises in eastern India.
The 118-year-old exchange, which has stopped trading since 2013, is in the process of a voluntary exit under the direction of Sebi. However, there has been a sustained effort by the present dispensation at the CSE to reverse the course of imminent closure, following the political change of guard in Bengal in May.
The effort led to finance minister Swapan Dasgupta announcing the decision of the government to officially support the revival of CSE ‘to reclaim Calcutta’s place as a financial capital’.
“The revival of the Calcutta Stock Exchange would have multifarious advantages, including easier access to capital for eastern India, lower costs of listing and trading and creating new jobs,” Dasgupta said in his speech.
While the support from the BJP-led government could be a turning point for CSE, a lot of policy shift has to happen before the revival becomes a reality.
Deepankar Bose, public interest director of CSE, welcomed the decision of the government. “We are very happy with the budget proposal. A board meeting of CSE will take place soon to take the next course of action,” Bose told The Telegraph.
The board is likely to write to Sebi officially, apprising it of the decision of the state government and to seek a relook at the exit proposal.
Industry sources suggested the operation of the exchange has to be reimagined if it is to survive in today’s regulatory and business environment, aided by policy change at the Centre.
“All depends on the finance ministry and Sebi. The process could take time,” they pointed out, adding Sebi had taken a decision a decade back to close regional exchanges like CSE.
Listing plans
The budget also proposed listing profit-making state PSUs on stock exchanges, marking a significant shift in its approach towards public sector asset monetisation and capital mobilisation. In the past, the state finance department officials indicated that around 20 profitable state PSUs existed across various sectors.
Officials said state-owned entities operating in sectors such as power, infrastructure, electronics, industrial development and renewable energy could be considered for listing after detailed evaluation.