West Bengal is working on revival of Calcutta Stock Exchange, says Bengal FM Swapan Dasgupta
Kolkata, June 25
The West Bengal government is working on modalities to support the revival of the Calcutta Stock Exchange, one of India's oldest stock exchanges, with the aim of preserving its legacy and strengthening Kolkata's position as a financial centre, State Finance Minister Swapan Dasgupta said.
In an exclusive conversation with ANI at the Assembly House in West Bengal on Thursday, Dasgupta said the state government believes Kolkata needs to preserve the stock exchange despite the challenges involved in reviving it.
"Well, we believe that Kolkata needs to preserve the stock exchange. Now that's not going to be a very easy proposition, because of various other factors, you know, technology being the thing. The question really is how do we take into account the fact that a large number of businesses are still headquartered in Kolkata and listed on the Kolkata Stock Exchange and move away from arbitrage to trading. That's the challenge and we're working on the modalities," he said.
The minister's remarks are seen as an effort to reclaim Kolkata's place as a financial centre and attract fresh investment and employment opportunities to eastern India.
The Calcutta Stock Exchange has a long history dating back nearly two centuries. The roots of stock trading in Kolkata can be traced to 1830, when trading activities were conducted informally under a neem tree. Brokers carried out transactions in the open without any permanent infrastructure.
Over time, the growing inconvenience of operating in such conditions prompted brokers to organise themselves. In May 1908, the Calcutta Stock Exchange Association was formally established at 2, China Bazar Street with 150 members.
The exchange went on to become one of the country's prominent regional stock exchanges and played an important role in the development of capital markets in eastern India.
According to the finance minister, the key challenge today is adapting the institution to changing market conditions and technological developments while ensuring that businesses historically associated with the exchange continue to find value in its revival.
The proposal for revival comes amid efforts by the state government to attract investment and reinforce Kolkata's historical role as one of India's major commercial and financial centres.
— ANI
Reader Comments
Sounds ambitious but I'm skeptical. NSE and BSE are too dominant now. Why would businesses list on a smaller regional exchange? But if they can find a niche, like for local MSMEs, maybe it could work. 🤔
I hope they focus on reducing costs for small investors and companies. Regional exchanges can be a boon for local businesses if the process is simplified. The eastern region needs more financial hubs, so this is welcome.
Good intention but not easy. They need to upgrade technology big time and make it attractive for new-age startups. If done well, could create jobs and boost investment in West Bengal. The state government should also attract more companies to HQ in Kolkata. 👍
Revival is one thing, but making it relevant in an era of digital trading is another. The government should consider partnering with fintech firms. Also, preserving history is nice, but we need practical solutions, not just nostalgia.
As someone from Kolkata, this makes me proud. The neem tree story is legendary! Let's hope the state government does not just make announcements but also executes well. We need more such initiatives to bring back the city's charm. 🤞
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