The West Bengal government is working on a plan to revive the century-old Calcutta Stock Exchange (CSE), seeking to bring the dormant bourse back into the state's financial ecosystem after more than a decade without trading.According to reports, the Bengal government is exploring ways to reposition the exchange instead of allowing it to fade away after years of regulatory and legal hurdles. The revival proposal is expected to involve discussions with market regulators and stakeholders to identify a sustainable business model for the exchange.The move comes as the CSE, founded in 1908, remains one of Asia's oldest stock exchanges. Once India's second-largest bourse after the Bombay Stock Exchange, it has not conducted trading since 2013 after Sebi suspended its operations for failing to meet regulatory requirements. The exchange's exit process has remained tied up in litigation before the Calcutta High Court.Looking beyond equity tradingOfficials are examining whether the exchange can be revived with a different business model rather than competing directly with the National Stock Exchange (NSE) and BSE, which together dominate India's equity trading volumes.Reviving a traditional stock exchange would be challenging given the overwhelming market share of NSE and BSE. Any revival would likely require CSE to identify a niche role, such as serving specific market segments or offering specialised financial market infrastructure.A rich legacyThe Calcutta Stock Exchange traces its origins to informal trading in Kolkata during the 19th century before being formally established in 1908. At its peak, it was among India's leading exchanges and had thousands of listed companies.The exchange adopted electronic trading in 1997 but suffered a major setback following the 2001 stock market scam linked to broker Ketan Parekh. In the following years, trading volumes steadily declined as liquidity migrated to NSE and BSE. The BSE later acquired a 5% strategic stake in CSE, but the exchange continued to struggle.Regulatory hurdles remainAny revival plan would have to address significant regulatory challenges.Sebi had directed several regional stock exchanges to either meet prescribed norms or exit the business under its exit framework. While most regional exchanges shut operations, CSE's case has remained pending because of ongoing legal proceedings. The regulator has maintained that the exchange has not met the required regulatory conditions for resuming normal trading operations.Also read: 11,983% profit! HFCL promoter’s Rs 10/share Jio bet may turn into Rs 5,800 crore windfallThe Bengal government's push comes amid a broader effort to position Kolkata as a financial and investment destination. Restoring the CSE in some form could strengthen the state's financial infrastructure and preserve an institution that played a key role in India's capital market history.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)