The circular lists revisions to the terms and conditions of the LEIPS (BSE Notice No - 20110907-5). The changes will be effective starting 26th October, 2011.
Amendments in LEIPS I and LEIPS II
· Payouts will continue to be capped for a maximum of 10 contracts per trade for futures. Payouts for options will now be capped for a maximum of 200 contracts per trade.
· BANKEX futures and options will be added to the list of instruments for which incentives will be paid – in addition to futures and options on SENSEX and the underlying 30-SENSEX stocks.
· Incentive payouts (for both volume and Open Interest) have been extended from trades in the current month to trades in the current, near, and far months.
· Eligibility conditions have changed. Members will not be required to continuously quote for a period of 20 days to become a Market Maker in a security. The other eligibility conditions remain.
· Options Spread Obligations have been revised. The new options obligations are shown below.
Table 1—Options Spread Specification
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SENSEX, BANKEX & Stock Options
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Bid Prices of Premium (Rs)
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Maximum Spread (Rs.)
(Current Month Contract)
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0—100
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8.00
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100—250
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12.00
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250—500
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16.00
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>500
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20.00
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Amit Shrivastava
Business Development
Date: October 11, 2011
Attached - Revised Annexure II - LEIPS-II and Contact list.
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