 "BSE to stop LEIPs on single stock options contracts from Oct 16")
The liquidity enhancement incentive programmes (LEIPS) - wherein entities get incentives in the form of cash payment for trading in single stock options contracts - was launched by BSE in late February.
According to Sebi regulations, stock exchanges can introduce incentive schemes for brokers and intermediaries to enhance liquidity in illiquid securities in the equity cash and derivative segments.
More From This Section
"... The exchange shall discontinue the LEIPS on single stock options contracts with effect from October 16, 2015," BSE said in a circular.
This programme focused on monthly single stock options on 20 underlying securities, which are part of S&P BSE Sensex.
This programme used to offer four types of incentives to market participants.
Currently, BSE offers members incentives for trading in Sensex futures and options, equity-based exchange-traded fund (ETFs), along with stock futures.