The National Commodity & Derivatives Exchange Limited (NCDEX) on March 21, 2025, issued a circular regarding the Liquidity Enhancement Scheme in Guar seed Options on Futures Contracts.
The following has been stated namely: -
• A reference circular of SEBI vide its master circular no. SEBI/HO/MRD/MRD-PoD-1/P/CIR/2023/136 dated August 04, 2023, on Master Circular for Commodity Derivatives Segment has issued guidelines for the introduction of Liquidity Enhancement Scheme (LES) in commodity derivatives contracts.
• It states that the interested applicants can submit their bids to become the Designated Market Maker (DMM) for Guar seed Options on Futures contracts from March 22 to March 25, 2025, and the Exchange will appoint one DMM based on a competitive bidding procedure.
• It notified that the successful bidder will be appointed as the DMM for the duration of the LES, provided they fulfill all obligations. The Exchange can amend or discontinue the scheme with a 15-day advance notice.
[Circular No: NCDEX/TRADING-009/2025]
