SEBI issued Circular no CIR/MRD/DP/14/2014 dated April 23, 2014 regarding revised guidelines for Liquidity Enhancement Scheme in the Equity Cash & Equity Derivatives Segment. On this background the Exchange shall launch new Liquidity Enhancement programme on Equity Exchange Traded Funds (ETFs) with effect from September 01, 2015.
The programme is open for all the active trading members of Equity Segment who shall fulfil the stipulated obligations and there shall be no separate registration required for participating in LEIPS on Equity ETFs.
Features of the LEIPS on Equity ETFs are as follows -
1. INCENTIVES: Incentives under this programme shall be in terms of transaction charges rebate. All the trading members who qualify as Market Maker under the above programme are eligible for rebate of transactions charges. The incentives as mentioned below shall be calculated on daily basis and shall be settled against transaction charges of Equity segment at the end of the month.
The programme offers incentives to market participants as follows:
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Details
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MM to MM
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MM to Others
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Others to Others
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Market maker (MM)
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Rs.275 per crore of turnover* each to both MM
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Rs.275 per crore of turnover* to MM
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Rs.100 per crore of turnover* to others
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* Only turnover in Equity ETFs eligible under this programme shall be considered for incentives as per table above
2. MARKET MAKING: Trading Members fulfilling the following obligations shall be treated as market maker:
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Details
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Obligations
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Market wide presence
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75%
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Quoting price points
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Within top 15 price points
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No of days in a month
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80%
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Minimum turnover per day (Across all eligible Equity ETFs as per the programme)
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Rs.25 lakhs
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3. ELIGIBLE EQUITY ETFs UNDER THE PROGRAMME – To begin with LEIPS on Equity ETFs shall be on Index based ETFs on underlying index -S&P BSE SENSEX, S&P BSE 100 and S&P BSE CPSE Index.
List of Equity ETFs under this programme and their respective spread size obligations are as follows:
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Name of underlying Index
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ETFs
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Scrip Symbol
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Scrip Code
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Bid-Ask Quantity
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Bid-Ask Spread (%)
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S&P BSE SENSEX
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ICICI PRUDENTIAL SPICE FUND
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ISENSEX
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555555
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30
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0.25% of bid price
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KOTAK MAHINDRA MUTUAL FUND
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KTKSENSEX
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532985
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RELIANCE MUTUAL FUND
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RELSENSEX
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538683
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SBI MUTUAL FUND - SBI SENSEX E
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SBISENSEX
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535276
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S&P BSE 100
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SBI MUTUAL FUND
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SETFBSE100
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539031
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100
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0.25% of bid price
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S&P BSE CPSE
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GOLDMAN SACHS MUTUAL FUND- CPS
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CPSEETF
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538057
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100
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1% of bid price
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NOTE: During the period of LEIPS on ETFs, if new ETF (based on underlying as S&P BSE SENSEX, S&P BSE 100 and S&P BSE CPSE Index) gets listed on BSE, it shall be automatically eligible for the above LEIPS programme.
LEIPS on Equity ETFs programme shall remain in force till March 31, 2016.
The Exchange shall amend the terms and conditions of its LEIPS Programmes based on the overall progress of the programme, market feedback and policy changes.
For any further clarifications, please contact your designated Relationship Managers.
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For & on behalf of BSE Ltd,
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Ketan Jantre
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Sameer Vaze
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GM – Trading Operations
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Manager – Trading Operations
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