BSE to discontinue liquidity enhancement scheme for equity derivatives from Jun 11

Leading stock exchange BSE has said it will discontinue liquidity enhancement scheme (LES) for equity derivatives segment from June 11. The exchange had introduced LES in equity derivative segment in August 2019. The scheme was provided on index futures and options and 50 stock futures and options.

"The exchange shall discontinue the LES...with effect from June 11, 2020," BSE said in a circular. Under the LES, brokers and other market intermediaries are given incentives for a specified period of time to bring in and generate investor interest in securities that have limited trading activity.