Minimum net worth requirement: SEBI requires the Calcutta Stock Exchange (CSE) to maintain a minimum net worth of ₹100 Cr to operate as a recognised stock exchange. Meeting this capital requirement will be a key challenge for the exchange's revival.
₹1,000 Cr annual turnover threshold: CSE must achieve an average annual turnover of ₹1,000 Cr to continue operating as a stock exchange. This could be difficult given that trading on its platform has remained suspended since 2013.
Technology and infrastructure requirements: The exchange must establish an online, screen-based trading system, surveillance mechanisms and the necessary infrastructure for orderly trade execution. These requirements would involve significant investment.
Outstanding dues and financial obligations: CSE must address outstanding payments to brokers and other stakeholders. Proceeds from land sales held in escrow have been identified as a potential source for settling these obligations.
Competition from established exchanges: NSE and BSE already dominate India's capital markets, making it challenging for CSE to attract brokers, investors and sufficient trading volumes to build a sustainable business model.
Key monitorable: Investors should track SEBI's regulatory clearances, fulfilment of net worth and turnover requirements, settlement of outstanding dues, technology investments and the progress of CSE's proposed revival.
