NSE launches scheme to reward members on governance standards

Leading bourse National Stock Exchange (NSE) has introduced a scheme -- MORE -- in a move to reward its trading members for maintaining high degree of governance standards on a continuous basis, effective from today.
The scheme is part of the exchange's effort to bring in new initiatives for the growth and development of market and to encourage healthy compliance and governance standards.
To start with, the new scheme has been launched on a pilot basis for trades done in currency futures in currency derivatives segment.
The NSE MORE scheme would be effective for a period from September 1, this year to March 31, 2016, the exchange said in a circular.

The one time registration under the scheme for members has begun from today.
Further, the exchange said in order to start availing the benefits under the scheme with immediate effect, trading members will have to register by September 15.

"Trading members registered on the 1st calendar day of any month will be eligible to avail the benefit under the scheme immediately with effect from the same month.
"However, any registrations under the scheme in between the month will be eligible to avail the benefit of the scheme with effect from the 1st trading day of the subsequent month," NSE said.

A member registered for the scheme will earn points on a monthly basis by satisfying certain criteria. At least four out of six compliance parameter should be satisfied on all days of the month.
Besides, the stock broker would have to be active on 90 per cent of the trading days in currency futures or average daily turnover would have to be Rs 200 crore in this segment.
Among the six parameters that needs to be complied in order to earn points -- trading members should not violate margin as well as position limit, there should be no breach in order to trade ratio.

Besides, there should be participation in regular monthly mock trading in order to avail points.
The transaction charges for all the members (irrespective of the registration) for all trades done in the currency futures would be Rs 1.10 per lakh of traded value in currency futures.
The exchange has asked all the members to join the scheme.