Liquidity Enhancement Schemes for Illiquid Securities in Equity Derivatives Segment

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....atives Segment 1. In consultation with BSE, MCX-SX, 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 approv....

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....securities: a. New securities permitted on the Stock Exchange after the date of this circular, b. Securities 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....

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.... b. Shares, including options and warrants, of the Stock Exchange. 7. If a Stock Exchange chooses the form specified in Para '6a' above, the incentives 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 Sto....