BSE to offer liquidity enhancement incentive to 163 securities

BSE has decided to offer 'Liquidity Enhancement Incentive Programmes Schemes (LEIPS)' to as many as 163 securities exclusively listed on the stock exchange.

Under LEIPS both market makers and general market participants get incentives

As per Sebi regulations, stock exchanges can introduce incentive schemes for brokers and intermediaries to enhance liquidity in illiquid securities in the equity cash and derivative segments.

The eligible securities belong to 'XC' group, which is a new sub-group implemented by BSE for companies listed exclusively on it.

The equities with a six monthly average (full) market cap of more than Rs 100 crore and having more than 1,000 public shareholders are classified under "XC" sub-segment.

Further, BSE said that registration for market makers for the set of companies under LEIPS scheme will be available in BSE Electronic Filing System (BEFS) from April 4, 2016.

Active trading members of equity segment of the exchange can follow a simple process to register themselves for this LEIPS scheme as a market maker by filling a registration form.

Members should also have net worth of Rs 1 crore and there should not be any disciplinary action against the member in last one year.

"...securities eligible for market making are subject to change from time to time depending on listing and surveillance actions," BSE said.

In a separate circular, BSE said that online bidding process for selection of market maker for BSE Exclusive securities (belonging to XD group) will begin from April 4.

The bidding process will be conducted in BSE's iBBS (Internet Based Book Building System)platform from April 4 to April 20 from 10:00 am to 6:00 pm daily.

It further said that 539 securities are eligible for market making.