DEFINITION of 'Calcutta Stock Exchange (CAL) .CL '
The securities market in Calcutta, India. The country's second-oldest exchange began in 1908 as the Calcutta Stock Exchange Association with the trading of securities in the East India Company. At this time, it had 150 members. In 1923, the Association became a limited liability concern. In 1980, the exchange was permanently recognized by India's government. In 1997, The Exchange was the largest in the country, and it replaced its manual trading system with a computerized trading system called C-Star.
BREAKING DOWN 'Calcutta Stock Exchange (CAL) .CL '
C-Star was subject to a major payment settlement system scam in 2001 that closed down the exchange and resulted in the suspension of 300 CSE members, many of whom were able to get their licenses back several years later. Many companies delisted from the CSE and joined the Bombay Stock Exchange (BSE) or National Stock Exchange instead. In 2007, the CSE entered a piggyback arrangement with the BSE. 2,500 companies are listed exclusively on the CSE, but critics say that there are not enough companies in East India and that very few of CSE's exclusive listings are good companies.