Calcutta (Kolkata) Stock Market: A Historical Sketch

Calcutta (now known as Kolkata), the political and commercial capital of British India till 1911, boasted a thriving stock market activity that served as the nation's first financial hub. The establishment of the Calcutta Stock Exchange (CSE) was a response to the growing need for an official stock exchange. During its heyday, Calcutta provided a plethora of trading opportunities through three distinct stock exchanges, namely the Calcutta Stock Exchange, the Bengal Share and Stock Exchange, the Stock Exchange Association of Bengal and informal exchanges at Gudri and Katni. However, with the change in time, only CSE continued its operations, and the other exchanges vanished/discontinued their operations. The CSE enjoyed the status of one of the most prominent stock exchanges for a long time and also modernised its operations with the introduction of electronic trading system. However, the challenges emerged from the payment crises of 2001 and the emergence of national-level electronic trading platforms offered by BSE and NSE, as a result of which CSE struggled to keep afloat. This eventually culminated in its trading suspension in 2013.