BSE launches LEIPS to incentivise derivative members

Country's premier bourse the Bombay Stock Exchange (BSE) today said it had initiated the first phase of its LEIPS (Liquidity Enhancement Incentive Programmes) in Sensex today with a turnover of over Rs 162 crore.

As a part of this largest ever initiative by Asia's first exchange to create long-term sustainable liquidity in its derivatives segment, BSE had decided to incentivise all its derivatives members.

LEIPS, launched with the goal of creating lasting, self-sustaining liquidity in BSE's derivatives segment has received overwhelming response and the trade was active. The turnover was also well over Rs 162.26 crore, the BSE said in a statement.

Sebi granted permission to exchanges to introduce liquidity enhancement schemes in the equity derivatives segment in June 2011.

The focus of the first two programmes will be on Derivatives on BSE's bellwether index, Sensex and its underlying 30 stocks. As part of these programmes, BSE will incentivise all its derivatives members by paying them as much as Rs 107 crore over the duration of these two programmes, it said.

LEIPS-I (BETA) will run from September 28 to October 25. Incentives to the tune of Rs 5 crore would be paid out to all participating members during this period.

LEIPS-II will commence on October 26 and run for a duration of six months. Incentives to the tune of Rs 102 crore (Rs 17 crore on a monthly basis) would be paid out to all participating members during this period.