New Delhi: Sebi Market Regulator on Wednesday relieves a time frame related to the time period to introduce a scheme to increase liquidity in stock exchange securities.
Regulators, in 2014, are permitted to exchange shares to introduce a scheme to increase liquidity in the derivative segment of equity and equity to increase liquidity in unequal effects.
Based on the experience of the Stock Exchange, it has been decided to modify the Framework, Effects and Western Exchange India (SEBI) to say in a circle.
Under the new rules, Sebi said that the Stock Exchange can introduce a scheme to increase liquidity on any security.
After the scheme is stopped, this scheme can be reintroduced on the same security.
Previously, the stock market was permitted to introduce a scheme to increase liquidity on any security for a maximum period of three years.
After the scheme is stopped, the scheme can be reintroduced on the same security as long as it is less than three years since the introduction of the security scheme.
In addition, SPI said the scheme “would have earlier approval from the Stock Exchange Regulatory Council to apply for one year.” The Stock Exchange Management Board can provide annual consent until the scheme operates, he added.
Furthermore, the implementation and the results will be monitored by the government council at the quarterly interval.
Previously, the previous agreement of the Stock Exchange Council was needed to be introduced to the circulation of liquidity and implementation schemes and the results were monitored by the council at the quarterly interval.
Under the scheme of increasing liquidity, brokers and other market intermediaries are given incentives for a certain period of time to bring liquidity and produce investor interest in securities that have limited trading activities.
Sebi comes out with a new skeleton for liquidity increasing schemes
