Sebi tweaks liquidity enhancement scheme for stock exchanges

The Securities and Exchange Board of India (Sebi), the markets regulator, on Wednesday revised the liquidity enhancement scheme (LES) framework used by stock exchanges to boost volumes.

Going ahead, exchanges will have to obtain prior approval of their governing board before launching any scheme.

“The governing board of the stock exchange may give yearly approval till the time the scheme is in operation. Further, its implementation and outcome shall be monitored by the governing board at quarterly intervals,” Sebi said in a circular.

“The stock exchange shall introduce liquidity enhancement schemes on any security. Once the scheme