This is with reference to the Exchange Notice no .20130315-25 dated March 15, 2013 regarding LEIPS Scheme for Dealers and Proprietary trading desks/members in Equity and Equity Derivative Segment and Notice no .20130315-25 dated March 22, 2013 regarding Clarification regarding LEIPS Scheme for Dealers and Proprietary trading desks/members in Equity and Equity Derivative Segment.
Following amendments in LEIPS Scheme for Dealer and Proprietary trading desks/members shall be applicable with effect from May 07, 2013
A) LEIPS Scheme - Dealer
1. Volume in non –STT securities shall be capped @ 10% of the total volumes equities and futures approved under LEIPS scheme in a calendar month.
For e.g A Dealer achieves turnover of Rs.4000 Crs distributed as –
Non STT Securities Equity, ETF – Rs.1000 Crs;
STT Securities Equity, ETF – Rs.1000 Crs;
Futures approved under LEIPS – Rs.2000 Crs.
In this case volume of Rs.400 Crs shall be considered under Non-STT Securities Equity & ETF.And therefore total volume of Rs.3400 Crs shall be considered for LEIPS Dealer scheme for this Dealer.
2. A minimum of at least 5 trading days participation meeting the daily volume eligibility is mandatory to qualify under the scheme. A dealer to qualify under the LEIPS Dealer incentive for a calendar month has to achieve daily targets specified under the scheme for minimum of 5 trading days in that calendar month.
Following are few examples for clarification –
Case 1 – If a dealer registers 1 to 4 days before end of calendar month May 2013 i.e between May 28 to 31, 2013 then that dealer shall not be eligible for LEIPS Dealer incentive for May 2013, even if dealer meets daily volume criteria from May 28 to May 31, 2013.
Case 2 –A registered dealer does incentive eligible volume in any 5 trading days and does not do any volume for rest of trading days of month May 2013. The dealer qualifies in top 15 dealers based under the region from where dealer has registered. In this case the dealer will not be eligible for LEIPS Dealer incentive of May 2013 even though he has qualified under minimum 5 trading days participation criteria but he has failed in maximum 2 trading days waiver from daily participation criteria.
Case 3 – A dealer registers for LEIPS dealer incentive scheme and becomes active under scheme 7 trading days prior to end of calendar month. Dealer does eligible volume as per scheme for 5 trading days and fails to meet eligible volume target for 2 trading days. Dealer also qualifies in top 15 dealers based under the region from where dealer has registered. In this case dealer shall be eligible for LEIPS Dealer incentive as per the scheme.
B) LEIPS Scheme – Prop Member/desk
Index and Stock Futures volume done in spread contracts, CFS contracts, near and far month contracts on which LEIPS scheme is ruining will not be counted under LEIPS Prop member/desk scheme except 2 days prior to expiry including day of expiry.
For the purpose of May 2013 dealer and prop desk/member incentive amendments as per point A and B shall be applicable to current dealer and prop desk/member scheme with effect from May 07,2013 and current terms and conditions shall be applicable from May 01,2013 till May 06,2013.
Other terms and conditions of LEIPS scheme for dealers and prop members/desk shall remain same.
For further clarification members are requested to contact their relationship manager
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Devika Shah
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Sameer Vaze
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Sr.GM –Trading Operations
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Manager – Trading Operations
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