The Supreme Court's decision to uphold the Calcutta High Court's extension allows the Calcutta Stock Exchange (CSE) crucial time to meet regulatory standards. This provides a pathway for CSE to revitalize its operations and potentially re-establish its presence in the Indian stock market landscape. The extension signifies a continued opportunity for CSE to innovate and adapt.
India's oldest stock exchange, the Calcutta Stock Exchange (CSE), has been granted a significant opportunity to revitalize its operations, as the Supreme Court has declined to interfere with the Calcutta High Court's extension for compliance with Securities and Exchange Board of India's (Sebi) Exit Policy. This decision provides CSE with crucial additional time to meet the stringent regulatory standards, paving the way for its potential resurgence.
The bench, presided over by Justice Abhay S. Oka and Justice Augustine George Masih, acknowledged that with the extension concluding in February, immediate intervention was unnecessary. The court has scheduled a review of CSE’s compliance progress on March 7, 2025, signaling a commitment to monitor the exchange's efforts towards meeting the required benchmarks.
The Calcutta High Court's initial six-month extension, granted in August 2024, allows CSE to either establish its own clearing corporation or forge a partnership with an existing entity. This directive came after the court validated the Exit Policy and the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 earlier in February 2024.
This extension is perceived as a golden opportunity for CSE to innovate and adapt to the modern regulatory landscape. Meeting the mandates of Sebi’s Exit Policy, which includes establishing a clearing corporation and achieving a ₹1,000 crore turnover, is pivotal for CSE's future. As stated by a market analyst, "This is a chance for CSE to showcase its commitment to regulatory compliance and operational excellence, potentially setting a new course for the exchange."
Established in 1908, CSE holds a distinguished place in India’s financial history. With this extended timeline, CSE has the chance to rejuvenate its operations and re-establish itself as a significant player in the Indian stock market, building on its legacy and contributing to the nation's financial ecosystem. The coming months will be critical as CSE works towards fulfilling the compliance requirements and embracing a new chapter of growth and stability.
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