The country's oldest stock bourse, the Bombay Stock Exchange, today commenced the first phase of its Liquidity Enhancement Incentive Programme (LEIP), which is believed to have boosted trading volumes in the derivative segment.
"On the first day of the start of the LEIP (covering Sensex and its 30 underlying stock derivatives), the BSE derivatives segment crossed Rs 60 crore volumes traded within an hour of trading," sources in the stock exchange said.
The first phase of the LEIP, which commenced today, will run till October 25, while LEIP-II will commence on October 26 and run for six months.
Over the course of the LEIP programme, the BSE will reward all its derivatives members for maintaining healthy order books by paying them up to Rs 107 crore in incentives.
Incentives worth Rs 5 crore will be paid in the first phase, while in the second phase of the programme, incentives to the tune of Rs 102 crore would be paid out to all participating members.
Market regulator Securities and Exchange Board of India (Sebi) had allowed the exchanges to introduce liquidity enhancement schemes in the equity derivatives segment this June.
The focus of the first two programmes will be on derivatives on the bellwether index Sensex and its underlying 30 stocks.
Earlier, Anil Shah, a member of the BSE governing board had said, "The scheme is expected to increase derivative turnover of the exchange from existing around Rs 100 crore per day to over Rs 35,000 crore per day within 15 days of its launch in October."
