Liquidity Enhancement Schemes for Illiquid Securities in Equity Derivatives Segment

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....NSE and USE, it has been decided to permit Stock Exchanges to introduce one or more liquidity enhancement schemes (LES) to enhance liquidity of illiquid securities in their equity derivatives segments. 2. The Stock Exchange shall ensure that the LES, including any modification therein or its discontinuation, a. has the prior approval of its Board and its implementation and outcome is monitored ....

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....ties in case of a new Stock Exchange / new Segment, and c. Securities where the average trading volume for the last 60 trading days on the Stock Exchange is less than 0.1% of market capitalization of the underlying. 4. The LES can be discontinued at any time with an advance notice of 15 days. It shall, however, be discontinued as soon as the average trading volume on the Stock Exchange, during ....

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....tives under all LES, 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. If, however, a Stock Exchange chooses the form specified in Para '6b' above, the shares, including the shares that may accrue on exercise of warrants or options, given a....