IFSC: Sebi says LES exemptions applicable to all products

Sebi today said liquidity enhancement scheme-related exemptions extended to stock exchanges operating out of IFSC would be applicable for all products traded there.
Last month, the regulator exempted the stock exchanges functioning at International Financial Services Centre (IFSC) from complying with certain requirements related to Liquidity Enhancement Schemes (LES).
Among others, the incentives given by the bourses during a financial year should not exceed 25 per cent of the net profits or the free reserves of the stock exchange concerned.
Another requirement is that shares that may accrue on exercise of warrants or options given as incentives under all LSE in a financial year should not exceed 25 per cent of the issued and outstanding shares of the stock exchange.

The bourses have been exempted from complying with these two norms and now the same has been extended to all products.
"It is clarified that the exemption granted to stock exchanges at IFSC for the introduction of LES shall be applicable to all the products traded in IFSC," Sebi said in a circular today.
The clarification has been issued after discussions with the stakeholders concerned.