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Notice No.   20130101-20   Notice Date   01 Jan 2013
Category   Trading   Segment   Derivatives
Subject   Introduction of Liquidity Enhancement Incentive Programme (LEIPS) – VIII for BSE Derivative segment.
Attachments   LEIPS-VIII Programme Brochure.pdf ;


Pursuant to SEBI Circular CIR/DNPD/5/2011 dated June 2, 2011 (BSE Notice no-20110602-18, dated June 02, 2011), permitting stock exchanges to introduce Liquidity Enhancement Schemes (LES) for illiquid securities in their equity derivatives segment, the Exchange has launched a series of Liquidity Enhancement Incentive Programmes (LEIPS) with the goal of creating lasting, self-sustaining liquidity in BSE's Derivatives Segment.
In view of this, Trading Members are hereby informed that the Exchange is launching the 8th programme in the series viz. LEIPS – VIII on January 16, 2013.
The Programme focuses on single Stock Futures Contracts on 30 underlying scrips forming part of SENSEX. The programme incentivises both MMs and GMPs by payment of cash for their participation as per prescribed terms & conditions.
Active trading members of Derivative Segment of the Exchange who have already signed up in LEIPS-V,LEIPS VI and LEIPS-VII programme as GMPs shall be treated as GMPs in LEIPS-VIII programme as well. Trading members who wish to opt out of the LEIPS-VIII programme as GMPs shall be required to intimate the Exchange of the same.
Registered Market Makers of LEIPS-V,LEIPS VI and LEIPS-VII programme shall have to register themselves as a Market Maker in LEIPS- VIII programme & expressly indicate their interest to do Market Making in the underlying securities eligible under LEIPS-VIII programme.
Other active trading members of Derivative Segment of the Exchange can register themselves as a Market Maker (MM) or a General Market Participant (GMP) for this programme as well.
LEIPS-VIII envisages the MMs to have a continuous quoting obligation with specified size and spread in Single Stock Futures Contracts on aforesaid underlyings. The programme offers 4 types of incentives to market participants – 
·         Trading volume based daily cash incentives paid on pro rata basis to MMs & GMPs.
·         Quote based incentives for MMs
·         Open Interest (OI) based cash incentives paid on daily basis for average daily OI to MMs and GMPs
·         Lower transaction fees for all active trading members.
Details of LEIPS-VIII programme are enclosed herewith as Annexure.
For any further clarifications, please contact your designated Relationship Managers.
For and on behalf of BSE Limited.

 Devika Shah
   Sameer Vaze
Sr. GM – Trading Operations
   DM – Trading Operations