Calcutta Stock Exchange seeks Sebi approval for trading revival
The 118-year-old Calcutta Stock Exchange is pursuing regulatory clearance from India's Securities and Exchange Board (Sebi) to resume equity trading operations through interoperability arrangements or by establishing a new clearing corporation. The exchange is evaluating compliance pathways, with interoperability via NSE or BSE identified as a potentially faster route to market reactivation.
The Calcutta Stock Exchange, which has operated for 118 years, is actively seeking guidance from Sebi to restart its equity trading operations. According to the announcement, the bourse is exploring multiple regulatory compliance options to facilitate its return to active trading. The exchange is evaluating whether interoperability agreements with either the National Stock Exchange (NSE) or Bombay Stock Exchange (BSE) could expedite the revival process. Alternatively, the establishment of a dedicated new clearing corporation represents another pathway under consideration. The bourse's pursuit of Sebi approval indicates a structured approach to addressing regulatory requirements necessary for recommencing operations.
The potential revival of the Calcutta Stock Exchange holds significance for India's broader capital markets ecosystem. Regional bourses play an important role in democratizing market access and encouraging retail participation in underserved geographic areas. Interoperability solutions have become increasingly common in modern market infrastructure, allowing smaller exchanges to leverage the technological and operational frameworks of larger counterparts while maintaining distinct identity. A successful comeback could enhance competition in India's equities space and provide additional venue options for market participants. The regulatory path chosen—whether interoperability or establishment of new clearing infrastructure—may set precedent for other dormant or emerging exchanges seeking to participate in India's growing securities market.
Source: Markets-Economic Times
This article is an editorial summary sourced from third-party news providers and is produced by marketkin.com for informational purposes only. It does not constitute investment advice. Disclaimer