The International Financial Services Centres Authority (IFSCA) on September 09, 2022, amends the guidelines for Liquidity Enhancement Scheme IFSCA, vide circular 286/IFSCA/PM(CMD-DMIIT)/2021/4 dated March 31, 2022, 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 Circular as mentioned 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, the Governing Board shall monitor its implementation and outcome 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.
[Notification No. IFSCA/CMD-DMIIT/LES/2022/005]
