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BSE To Unveil Futures Contract In Brent Crude Oil On January 27

Roshni Agarwal

India's oldest bourse BSE in a circular said, "Exchange shall introduce futures contracts on brent crude oil in commodity derivatives segment with effect from January 27, 2020."

Further in another notification BSE said subject to approval from the SEBI, the BSE may also unveil a liquidity enhancement scheme on this contractIn the latest circular, the BSE said, "Exchange may introduce liquidity enhancement scheme (LES) in brent crude oil futures in commodity derivatives subject to regulatory approval."

It is to be noted that as per the liquidity enhancement schemes (LES), brokerage houses and other market participants are provided incentives for a specific time period for brining in liquidity and create interest of investors in securities with limited trading activity.

Earlier there was a call made by the market watchdog that commodities that see sharp volatility should not be made eligible for LES.

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