The West Bengal Government is developing plans to support the redevelopment of the Calcutta Stock Exchange (CSE), one of India’s oldest stock exchanges in order to uphold its tradition and bolster Kolkata’s status as a financial hub, according to state Finance Minister Swapan Dasgupta.
Dasgupta stated that despite the difficulties in reviving the stock market, the state government feels Kolkata must maintain it. He added Kolkata must protect the stock exchange though that won’t be an easy task due to a number of other factors, including technology.
“The question really is how we take into account the fact that a large number of businesses are still headquartered in Kolkata and listed on the CSE and move away from arbitrage to trading. That’s the challenge and we’re working on the modalities,” he said.
The minister’s comments are seen as an attempt to restore Kolkata’s status as a financial hub and attract the capital and job possibilities for eastern India.
The CSE has been around for around 200 years. The origins of stock trading in Kolkata date back to 1830, when unofficial transactions took place beneath a neem tree. Without any long-term infrastructure, brokers conducted trades in the open.
Over time, brokers organised themselves due to the increasing inconvenience of operating in such settings. With 150 members, the Calcutta Stock Exchange Association was formally founded in May 1908 at 2, China Bazar Street.
The exchange went on to become one of the most well-known regional stock exchanges in the country and was key to the growth of eastern India’s capital markets.
The finance minister believes that the institution’s main task now is to adjust to shifting market conditions and technological advancements while making sure that companies that have historically been connected to the exchange still find value in its revival.
The state government’s efforts to draw in investment and uphold Kolkata’s longstanding position as one of India’s principal commercial and financial hubs coincide with the idea for restoration.
