Revised guidelines for Liquidity Enhancement Scheme in the Equity Cash and Equity Derivatives Segments

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....ring liquidity enhancement schemes in the equity cash and equity derivatives segments, and based on the discussions held in Secondary Market Advisory Committee, it has been decided to revise the framework for providing liquidity enhancement schemes as given below. 3. Introduction of liquidity enhancement schemes - The stock exchange may introduce liquidity enhancement schemes in equity cash and equity derivatives segments subject to the following: 3.1. The scheme shall have the prior approval of the Stock Exchange's Board and its implementation and outcome shall be monitored by the Board at quarterly intervals. 3.2. The scheme shall be objective, transparent, non-discretionary and non-discriminatory. 3.3. The scheme shall specif....

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....roduced in another stock exchange. Such schemes cannot be continued beyond the period of liquidity enhancement schemes of the initiating stock exchange. 4.3. The list of securities eligible for liquidity enhancement shall be disseminated to the market. 5. The incentives under liquidity enhancement schemes shall be transparent and measurable, and may take either of the following two forms: 5.1. Discount in fees, adjustment in fees in other segments or cash payment - The incentives during a financial year shall not exceed 25% of the net profits or 25% of the free reserves of the stock exchange, whichever is higher, as per the audited financial statements of the preceding financial year. 5.2. Shares, including options and warrants,....