In a significant corporate development, ITC Limited, one of India’s largest diversified conglomerates, is reportedly planning to delist its shares from the Calcutta Stock Exchange (CSE). The company has announced that its board will meet on October 30 to consider a proposal for voluntary delisting. The news has sparked curiosity among investors and industry experts, many of whom are keen to understand the strategic reasoning behind this move.
According to the company’s regulatory filing, the board will review a formal proposal to voluntarily delist ITC’s ordinary shares from the Calcutta Stock Exchange Limited. While this sounds like a big shift, it is important to note that ITC’s shares will continue to remain listed and actively traded on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), where most of its trading volume occurs.
A legacy connection that may soon end
The Calcutta Stock Exchange, once one of India’s oldest and most vibrant stock exchanges, has seen its activity fade dramatically in recent years. For decades, ITC’s presence on CSE carried symbolic importance. After all, ITC’s roots are deeply tied to Kolkata, where the company was founded in 1910 as the Imperial Tobacco Company of India Limited. However, times have changed.
Over the last two decades, trading volumes on CSE have declined sharply. The exchange itself has been struggling to stay relevant amid the dominance of NSE and BSE, both of which now handle almost all of India’s equity trades. With nearly negligible trading volumes on CSE, maintaining a listing there has become more of a compliance exercise than a practical necessity.
A senior market analyst familiar with the matter remarked, “It’s not unusual for large companies to delist from smaller exchanges. Maintaining multiple listings comes with additional administrative costs and compliance work, which do not necessarily add value to shareholders.”
Why ITC may be considering the move
There are several practical reasons behind ITC’s potential delisting from CSE. First and foremost, the company’s trading volume on that exchange is minimal. Almost all investor activity in ITC shares takes place on NSE and BSE, where the stock is among the most actively traded in the FMCG sector.
Secondly, delisting from CSE could help ITC reduce redundant compliance obligations and associated costs. Each exchange listing comes with its own set of annual fees, documentation, and regulatory requirements. For a company the size of ITC, simplifying such processes can enhance operational efficiency.
Third, CSE’s relevance in India’s capital markets has been waning for years. The exchange even initiated a voluntary exit plan in recent times, acknowledging that its survival was no longer sustainable in the face of modern, electronic trading systems. In such a situation, ITC’s decision appears both logical and timely.
An ITC official familiar with the decision said on condition of anonymity, “Our primary listings on NSE and BSE ensure full liquidity and visibility for our shareholders. The proposal to delist from CSE is part of a broader streamlining effort and does not affect investor access or trading convenience.”
What does this mean for investors?
For existing shareholders, this move will have almost no impact on how they buy or sell ITC shares. Since NSE and BSE handle nearly all transactions, the delisting from CSE won’t affect liquidity or share value. Investors will continue to trade ITC shares as usual.
However, the step could signify a broader trend among major companies to consolidate their listings only on active exchanges. Several other large Indian corporations have already moved in the same direction over the past few years. This streamlining reduces regulatory friction and allows firms to focus on more active and modern trading platforms.
Financial expert Saurabh Jha explained, “CSE’s delisting by ITC is symbolic of the evolving structure of Indian stock markets. Companies are now prioritizing efficiency, digitalization, and investor convenience. CSE, while historic, has lost its competitive relevance.”
Broader market implications
This decision also highlights a changing dynamic in India’s corporate listing environment. Smaller regional exchanges that once played a vital role in the country’s economic story are now fading as electronic trading and national-level platforms dominate.
ITC’s exit, if finalized, could be one of the last major corporate departures from CSE, signaling the end of an era. Yet, it also represents progress. The consolidation of listings onto stronger platforms improves market transparency and efficiency, benefiting both investors and regulators.
Moreover, ITC’s move may set a precedent for other legacy companies that still maintain inactive listings on regional exchanges. As compliance and reporting costs rise, more firms may follow suit to rationalize their market presence.
The road ahead
The final decision will depend on the outcome of ITC’s board meeting scheduled for October 30. If the board approves the proposal, the company will need to follow the procedures laid out under the Securities and Exchange Board of India (SEBI) regulations for voluntary delisting. The process may involve formal notifications, regulatory approvals, and the exchange’s consent.
While the step is mostly procedural, it does hold emotional weight for those who view ITC’s historic link with Kolkata as symbolic. Yet, in a fast-changing business environment, such strategic adjustments are often necessary for efficiency and focus.
In essence, ITC’s proposed delisting from the Calcutta Stock Exchange is not a retreat but a realignment. It reflects a modern, pragmatic approach to corporate listing management in India’s evolving financial ecosystem.
For investors, the message is simple: stay calm, stay invested, and watch how India’s capital market continues to modernize.