Leading stock exchange BSE will introduce Liquidity Enhancement Scheme (LES) in two options contracts -- gold mini and silver kilo -- from July 6, a move aimed at boosting trade in these products.
Under the LES, brokers and other market intermediaries are given incentives for a specified period of time to bring in and generate investor interest in securities that have limited trading activity.
In a circular, BSE said it has "decided to introduce LES in gold mini options and silver KG options in commodity derivatives from July 06, 2020."
The exchange launched options on gold mini (100 grams) and silver kilo on June 1.
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Options contract gives the buyer or holder of the contract the right (but not the obligation) to buy or sell the underlying asset at a predetermined price within or at the end of a specified period.
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