BSE tweaks incentives for retail participants in derivatives segment

Introduces payouts for open interest

Asia’s oldest stock exchange BSE has introduced incentives for retail investors, who provide open interest in its equity derivative segment.

The exchange has changed its trading incentives for brokers as well. While the new retail investor open interest scheme will be effective from September 26, the revised retail trading incentives for brokers will be effective from October 1.

BSE will pay investors Rs 10 per lot up to a limit of 10 lots per unique client code (UCC) per day, out of its daily pool of Rs 1 lakh.

The scheme is eligible for open interest generated in the S&P BSE Sensex Futures & Options contracts, in the near and current month contracts, it said. It will also apply to stock futures in the current month. Brokers will be paid depending on number of UCCs trading on the BSE through them in a given calendar month.

“The incentives mentioned above shall be paid from pool of Rs 20 lakh and if total UCC incentive amount crosses the pool of Rs 20 lakh then incentives shall be paid on pro-rata basis,” said the BSE notice dated August 28.