KOLKATA: The revival of the century-old Calcutta Stock Exchange will depend on its ability to attract sufficient trading volumes, build a sustainable business model and make substantial investments in technology, SEBI chairman Tuhin Kanta Pandey said here on Saturday.

Responding to a question on the West Bengal government's proposal to revive the exchange, Pandey said the existing regulatory framework did not rule out the possibility of setting up new stock exchanges, but any such proposal would have to meet prescribed governance, capital and other regulatory requirements.

The requirements like net worth, a turnover of Rs 1,000 crore, payment of dues and having its own clearing corporation will be difficult for CSE given the current situation unless the local bourse can attract a strategic investor.

The exchange had sold a plot of land, which provided a one-time boost to its finances and helped it register a profit in 2025-2026. It also recently issued bonus shares in the ratio of 2:1.

Pandey, however, indicated that the need for another exchange must be assessed against the existing market infrastructure, saying the country's current exchanges were adequately equipped to handle larger trading volumes.

"I think even the existing exchange infrastructure is sufficient to handle larger volumes," Pandey said.

He cautioned that the market landscape had changed significantly since the days when regional stock exchanges operated across the country, with electronic trading now allowing investors to access markets from anywhere.

"Having an exchange is one thing. But whether you would be able to really make it feasible is another," Pandey said.

He said liquidity would be a critical consideration for any new exchange, as trading generally tends to gravitate towards platforms where maximum liquidity is available.

Promoters would, therefore, need to demonstrate that enough clients would trade on the platform to sustain its operations.

The SEBI chief also stressed that exchanges would require heavy and continuing investments in technology, with requirements expected to increase manifold as they deal with emerging risks, including those arising from artificial intelligence.

Pandey also questioned whether geographical proximity, which was once an important factor for regional exchanges, would remain relevant in an era of electronic trading, where transactions can be carried out from anywhere.

The Calcutta Stock Exchange had sought a hold on its exit application in July after the West Bengal government announced its intention to revive the institution in the state budget.

Pandey's remarks underline that while regulatory provisions do not bar new exchanges, the availability of adequate existing infrastructure, commercial viability and the ability to compete in a market dominated by the NSE and BSE would be key considerations.

Trading at CSE has been suspended since April 2013 due to regulatory compliance issues.