The National Stock exchange of India Limited vide its notification dated 15th June 2020 has revised the existing Liquidity Enhancement Scheme (LES) which shall be in force from 1st July 2020 and shall remain in force for 6 months.
As per the revised scheme, the trading members who are interested in providing continuous quotes as Market Makers shall be required to register with the Exchange and shall possess a net worth of 1 crore and there shall not be any serious disciplinary action against the member in the last year.
The exchange will appoint one designated MM for the Gold Mini Options based on a competitive bidding procedure. The successful bidder shall be appointed as designated MM till the scheme for the product remains in force. The Exchange reserves the right to terminate the services of the MM in case of non-fulfillment of their quote obligations for any other actions that are detrimental to the development of the market. The exchange shall impose a non-performance fee of Rs.5 lakhs if the MM choose to discontinue or his services are discontinued by the Exchange within the first 3 weeks of their empanelment.
Click here to read the notification.
