The International Financial Services Centres Authority on 9th September 2022, has modified the guidelines for liquidity enhancement scheme. The scheme was introduced on 31st March 2022 and the stock exchanges may introduce liquidity enhancement schemes in any security/ listed products.
Through this amendment, it has been modified that the Scheme shall have prior approval of the Governing Board of the Stock Exchange, which will be valid for one year. The Governing Board of the Stock Exchange may grant annual approval till the time the scheme is in operation. Further, its implementation and outcome shall be monitored by the Governing Board at quarterly intervals.
The Stock Exchange may introduce Liquidity Enhancement Schemes on any security. Once the scheme has been discontinued, it can be re-introduced on the same security.
