Laws and sections by number or title, due dates, pages, and updates.
The International Financial Services Centres Authority updates the guidelines for the Liquidity Enhancement Scheme for stock exchanges in the International Financial Services Centre. Stock exchanges apply the updated rules to existing schemes and new schemes. The Governing Board of the Stock Exchange grants annual approval for the scheme. The Governing Board monitors the implementation and the outcome at quarterly intervals. Stock exchanges introduce liquidity enhancement schemes on any security. Stock exchanges re-introduce the scheme on the same security after discontinuation. Stock exchanges implement systems, amend byelaws, notify broker dealers, publish the provisions on websites, and report the implementation status to the authority.
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CIRCULAR
IFSCA/CMD-DMIIT/LES/2022/005
September 09, 2022
To,
All the Stock Exchanges in the International Financial Services Centre (IFSC)
Dear Sir/Madam,
Subject: Amendment to guidelines for Liquidity Enhancement Scheme
IFSCA, vide circular 286/IFSCA/PM(CMD-DMIIT)/2021/4 dated March 31, 2022, had issued Guidelines for Liquidity Enhancement Scheme in IFSC.
Based on the representations received from stock exchanges, it has been decided to modify Clause 1 a) and 2 a) of the aforementioned Circular as follows:
"1 a) 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.
2 a) 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".
The above will also apply to existing schemes. Other conditions stipulated in the aforementioned IFSCA circular shall remain unchanged.
The Stock Exchanges are hereby directed to:
This circular is issued in exercise of powers conferred by section 12 of the International Financial Services Centres Authority Act, 2019 to develop and regulate the financial products, financial services and financial institutions in the International Financial Services Centres.
Yours faithfully,
Praveen Kamat Deputy General Manager Division of Market Infrastructure Institutions and Technology Capital Markets Department email: praveen.kamat@ifsca.gov.in Tel: +91-79-6180 9820
