INSUBCONTINENT EXCLUSIVE:
New Delhi: With an objective to boost trade in the commodity derivatives segment, the BSE on Tuesday said it will introduce liquidity
enhancement scheme in brent crude oil futures from February 1.
Under the liquidity enhancement schemes (LES), brokers and other market
intermediaries are given incentives for a specified period of time to bring in liquidity and generate investor interest in securities that
have limited trading activity.
In a circular, the BSE said the exchange "shall introduce liquidity enhancement scheme in brent crude oil
futures in commodity derivatives with effect from February 1, 2020".
Earlier in March 2018, markets regulator Sebi had said "sensitive"
commodities that are prone to frequent price fluctuation as well as government interventions will not be eligible for LES.
Sebi had asked
exchanges to put in place a mechanism to ensure that the LES did not create artificial volumes, did not take away liquidity form the market,
is not manipulative in nature and will not lead to mis-selling of the product in the market.
A commodity derivative product is considered to
be 'liquid' on the basis of average daily turnover
In the case of agriculture and agri-processed commodities, the threshold is Rs 200 crore while it is Rs 1,000 crore for non-agricultural