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N O T I C E
Dated :August 30, 2017
Quote : -
CIRCULAR
SEBI/HO/MRD/DSA/CIR/P/2017/95 August 10,2017
To,
All recognised Stock
Exchanges/ Clearing Corporations in International Financial Services Centre
(IFSC)
All recognised Stock
Exchanges/ Clearing Corporations
All Registered Intermediaries
Dear Sir/Madam,
Sub: Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015-Liquidity Enhancement Scheme.
1. SEBI vide circular
CIR/MRD/DP/14/2014 dated April 23, 2014 permitted stock exchanges to introduce
liquidity enhancement schemes in the equity derivatives and equity cash
segments to enhance liquidity in illiquid securities.
2. Clause 5 of the SEBI circular
dated April 23, 2014 prescribes that the incentives under liquidity enhancement
schemes shall be transparent and measurable.
3. Based on the internal
discussions and consultations held with the stakeholders and given the fact
that the stock exchanges at GIFT IFSC are in a nascent stage and do not have
access to net profits/free reserves, it has been decided to grant an exemption
to stock exchanges at IFSC from complying with clause 5.1 and 5.2 of SEBI
circular dated April 23, 2014 subject to the condition that the exchange would
create a reserve specifically to meet Liquidity Enhancement Schemes (LES)
incentives/expenses based on the normative study of the LES in the domestic
market and such reserves would not be included in the net worth calculation.
4. Further, based on the aforesaid
normative study,stock
exchanges at IFSC shall furnish proposal for approval.
5. This circularis
being issued in exercise of powers conferred under Section 11 (1) of the
Securities and Exchange Board of India Act, 1992,to
protect the interests of investors in securities and to promote the development
ofand to regulate the securities market.
6. Other contents of the SEBI
Circular No: CIR/MRD/DP/14/2014 dated April 23, 2014 will remain operative.
7. This circular is available on
SEBI website at www.sebi.gov.in.
Yours faithfully,
Bithin
Mahanta
Deputy General Manager
Trading
Members are requested to take note of the aforesaid guidelines of SEBI and act
accordingly.
M.A.V. Raju
General
Manager