06 December 2024
The Supreme Court has declined to intervene in the Calcutta High Court’s decision to give the Calcutta Stock Exchange (CSE), India’s oldest stock exchange, more time to comply with the Securities and Exchange Board of India’s (Sebi’s) 2012 Exit Policy.
A bench comprising Justice Abhay S. Oka and Justice Augustine George Masih noted that since the extension would end in February, there was no need to intervene at this stage. The court said it would review CSE’s compliance with the Exit Policy at the next hearing on 7 March 2025.
Sebi had moved the Supreme Court to appeal the extension, alleging that CSE had become a “hub for manipulation” and failed to meet standards outlined in the Exit Policy. At the hearing, additional solicitor general N Venkataraman, representing Sebi, argued that CSE did not deserve a further extension as it had failed to comply with the 2012 Exit Policy. He said, “We don’t want one more day. For 12 years they have not been doing business, but are becoming a hub for manipulation. That’s our fear.”
CSE must comply with Sebi’s Exit Policy by 19 February 2025. The policy mandates stricter regulatory standards for stock exchanges, such as establishing a clearing corporation and achieving a ₹1,000 crore turnover. If CSE fails to meet these conditions, Sebi will be able to take further action, including pushing for the exchange’s closure.
In August 2024 the Calcutta High Court gave CSE six more months to comply with the policy, allowing it to either establish its own clearing corporation or partner with an existing one. This was after the court upheld the Exit Policy and the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 in February 2024.
The Supreme Court has declined to intervene in the Calcutta High Court’s decision to give the Calcutta Stock Exchange (CSE), India’s oldest stock exchange, more time to comply with the Securities and Exchange Board of India’s (Sebi’s) 2012 Exit Policy.
A bench comprising Justice Abhay S. Oka and Justice Augustine George Masih noted that since the extension would end in February, there was no need to intervene at this stage. The court said it would review CSE’s compliance with the Exit Policy at the next hearing on 7 March 2025.
Sebi had moved the Supreme Court to appeal the extension, alleging that CSE had become a “hub for manipulation” and failed to meet standards outlined in the Exit Policy. At the hearing, additional solicitor general N Venkataraman, representing Sebi, argued that CSE did not deserve a further extension as it had failed to comply with the 2012 Exit Policy. He said, “We don’t want one more day. For 12 years they have not been doing business, but are becoming a hub for manipulation. That’s our fear.”
CSE must comply with Sebi’s Exit Policy by 19 February 2025. The policy mandates stricter regulatory standards for stock exchanges, such as establishing a clearing corporation and achieving a ₹1,000 crore turnover. If CSE fails to meet these conditions, Sebi will be able to take further action, including pushing for the exchange’s closure.
In August 2024 the Calcutta High Court gave CSE six more months to comply with the policy, allowing it to either establish its own clearing corporation or partner with an existing one. This was after the court upheld the Exit Policy and the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 in February 2024.
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