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Notice No.   20121106-36   Notice Date   06 Nov 2012
Category   Trading   Segment   Derivatives
Subject   Revision in incentive program to increase retail participation in BSE Derivatives Segment


Trading members of the Exchange are requested to refer to notice number 20120829-22 dated August 29, 2012 regarding incentive program for increasing retail participation in BSE Derivatives Segment.
With a view to further popularize and encourage the small and medium size member to be co-opted in this scheme, the Exchange has decided to revise the incentive scheme as listed below:
1)      Revision in incentive structure as listed below:

Qualified UCC during a calendar month
Incentive Amount to be paid to the member per calendar month in Rs.
250 - 499
500 – 999
1000 - 2499
2500 – 4999
5000 – 7499
7500 – 9999
10000 and Above

2)      The Eligibility criteria for member to qualify:-
a)      There should at least be two trades in any of the BSE derivative products under active LEIPS programme for a UCC to qualify as one count. Out of the 2 trades one trade must be in current month index future contract (either on SENSEX or BSE 100 only) and second trade can be in any of the BSE Derivative products on ongoing LEIPS eligible underlying.
b)      If the second trade by the client is in options contracts then the trade has to be executed only on current month OTM1, ATM and any ITM strikes of either on BSE 100 and SENSEX options.
c)       For accounting purposes, one calendar month shall be considered as the eligibility period.
d)      If there are more than one set of trades done by a specific client on any of the Exchange derivative products as mentioned in point a) and b) above during a calendar month, it shall be considered as one count only.
3)      The incentive for retail participation in BSE Derivatives Segment shall be paid from pool of Rs.50 lakhs per month.Once the incentive amount crosses the pool of Rs.50 lakhs, the incentives shall be paid on pro-rata basis thereafter.
4)      Aforesaid scheme comes into effect from November 20, 2012 and applies to all the on-going LEIPS Programmes and new LEIPS programme that may be launched by the Exchange in future, unless specified otherwise.
5)      The above incentive programme shall replace the existing incentive program for retails participation in BSE derivative segment as per notice no 20120829-22 dated August 29,2012  with effect from November 20,2012
6)      Since the revised incentive programme for retail participation in BSE derivative segment shall come into effect on November 20, 2012, the incentive for retail participation for the month of November 2012 shall be calculated as under-
Ø For the period November 1, 2012 to November 19, 2012 – on pro rata basis as per the existing scheme
Ø For the period November 20, 2012 to November 30, 2012 – on pro rata basis as per the revised scheme mentioned herein.
For any further clarifications, members are advised to contact their designated Relationship Managers

Rajesh Saraf
Sameer Vaze
GM-Trading Operations
DM-Trading Operations