DEFINITION of 'Calcutta Stock Exchange (CAL) .CL '

The Calcutta Stock Exchange (CSE) is the securities market in Calcutta, India. It provides its members opportunities to trade in capital markets and the futures and options markets of the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE).

BREAKING DOWN 'Calcutta Stock Exchange (CAL) .CL '

Though the buying and selling of stocks in Calcutta can be traced back to the early 1800s, there was not a code of conduct or permanent place to execute trades. It is said that stockbrokers convened by a neem tree on a location which now holds the offices of the Standard Chartered Bank in Calcutta.

The 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. The CSE has since grown to more than 900 members and over 3,500 listed companies, and is the country’s second-largest exchange.

In 1997, the exchange replaced its manual trading system with a computerized trading system called C-STAR (CSE Screen Based Trading And Reporting). 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 BSE or NSE instead. In 2007, the CSE entered a piggyback arrangement with the BSE.

In 2012, the Securities and Exchange Board of India (SEBI) declared strict regulations for regional stock exchanges (RSEs), which triggered the voluntary exit of nearly 20 exchanges. The CSE experienced a halt in trading on C-STAR in 2013. It has struggled to maintain its existence in the face of stringent regulations; however, it considers itself a demutualized and professionally run stock exchange that enables members to trade on the BSE and NSE exchanges as well.

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