Capital markets regulator Securities and Exchange Board of India is examining an application by the Calcutta Stock Exchange seeking voluntary exit from the stock exchange business, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha on Monday.

In a written reply to a question in the Lok Sabha, Chaudhary said Sebi has set up a working group to examine the proposal and appointed a valuation agency to verify and assess the exchange’s assets and liabilities.

"Sebi has constituted a Working Group on the matter and appointed a valuation agency for verification and valuation of CSE's assets and liabilities."

He added that some information sought by the regulator from CSE is still awaited.

"Sebi would be passing a speaking order giving an exit to CSE from stock exchange business after taking a view on exclusively listed companies of CSE, its assets and liabilities, and relaxation from any regulations in order to facilitate exit," he said.

The Calcutta Stock Exchange had written to the Securities and Exchange Board of India on February 18, 2025 seeking voluntary exit under Sebi’s exit policy for stock exchanges.

"The proposal is at the stage of examination before SEBI," Chaudhary said.

Trading on the CSE platform has remained suspended since April 2013.

Earlier, the Calcutta High Court, through orders dated February 19, 2024 and August 19, 2024, had granted time to the exchange to comply with requirements related to clearing corporation arrangements and net worth under the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.

However, the exchange failed to meet these requirements within the stipulated timeframe. Subsequently, it submitted an application on February 18, 2025 seeking exit from the stock exchange business.