BSE to introduce daily incentive scheme for equity derivatives

Tags: Stock Market
Leading bourse BSE will introduce a new incentive scheme for brokers to attract more retail investors to equity derivatives, under which it would pay daily incentives besides existing trading-based payouts.

The new daily scheme, under which payouts to brokers for bringing in more retail investors would be linked to open interest volumes in a day, would become effective from September 26, the BSE said in a notice.

Earlier, this scheme was scheduled to begin from September 8.

Besides, the exchange would also revise its trading-based retail incentive scheme with effect from October 1. This revision was also earlier scheduled to take effect from September 8.

Under the daily incentive scheme, the exchange will pay investors Rs 10 per lot up to a limit of 10 lots per Unique Client Code (UCC) per day, out of its daily pool of Rs 1 lakh.

The scheme is applicable for S&P BSE Sensex Futures & Options contracts, in the near and current month contracts, it noted.

It will also apply to stock futures in the current month.

The existing retail incentive payout based on trading volumes would also undergo some changes from October, wherein changes are being made in the applicable slabs. Under this scheme, brokers' incentive payout depends on number of unique client codes trading on the BSE through them in a given month.

As of now, there are no incentive for up to 99 UCCs in a month. Following the revision, Rs 200 would be paid for 1-100 UCCs in a month. The maximum payout would remain unchanged at Rs 7.5 lakh for 7,501 and above number of UCCs in a month.

"The incentives shall be paid from pool of Rs 20 lakh and if total UCC incentive amount crosses the pool of Rs 20 lakh then incentives shall be paid on pro-rata basis," the notice noted.

EDITORIAL OF THE DAY

  • Wean off the dependence on increased tax collection from diesel and petroleum

    As reported by this paper, despite international crude oil prices ruling in a range of $50 to $60, Indian consumers are paying the same prices as they

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Sandeep Bamzai

Cut & Thrust: Interesting times

Russia’s ultra nationalist supreme leader, the all powerful Vladimir Putin ...

Sachin Shridhar

Strip numbers, see truth

Indian Parliament has over has over 34 per cent of ...

Rajgopal Nidamboor

That divine mosaic of art and science

Our old, inborn fancy to present complex explanations as a ...