NATIONAL STOCK EXCHANGE OF INDIA LIMITED DEPARTMENT : FINANCE & ACCOUNTS Download Ref No : NSE/FA/28735

Date : January 30, 2015

Circular Ref. No : 3/2015 To all the Trading Members in the CM Segment Sub: Liquidity enhancement scheme (LES) for market making in equity exchange traded funds (ETFs) on NSE Indian indices The Exchange vide it’s Circular No. NSE/FA/28186 dated November 27, 2014, had introduced a liquidity enhancement scheme in equity exchange trade funds (ETFs) on NSE Indian indices effective from December 15, 2014 till February 28, 2015 on a pilot basis. It has been decided to extend the scheme till June 30, 2015 with modifications as follows:

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The scheme shall be open for all participants, who fulfill the stipulated obligations. The incentives would be computed and settled on a monthly basis. Any participants fulfilling the following obligations shall be treated as the market maker:

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The market participants should provide quotes on both sides (buy/sell) for ETFs on a day for at least 80% of the trading time within the top 10 price points. The minimum quantity each at buy and sell for each ETF with its maximum permissible bid-ask spread is specified for all eligible equity ETFs in Annexure 1. The market participants should fulfill the above condition on at least 80% of the trading days in a month.

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Other Condition: • Equity ETFs for a given trading day will be eligible when the day’s turnover is above Rs 50 lakh for NIFTY based equity ETFs and Rs 25 lakhs for Non NIFTY based equity ETFs. A trading day when the equity ETFs turnover is below the threshold will be not included for computation of incentive benefit. Qualified market makers will be incentivised based on the counter party with which the trade gets executed. The incentives are as follows: Rebate Side 1 Zero Zero Rs 600 per Crore Rs 300 per Crore

Side 1 Non Market Maker Non Market Maker Market Maker Market Maker

Side 2 Non Market Maker Market Maker Non Market Maker Market Maker

Rebate Side 2 Zero Rs 600 per Crore Zero Rs 300 per Crore

The scheme shall be effective for a period of 4 months from March 1, 2015 till June 30, 2015. For National Stock Exchange of India Limited

Yatrik Vin Chief Financial Officer

Regd. Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051

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NATIONAL STOCK EXCHANGE OF INDIA LIMITED DEPARTMENT : FINANCE & ACCOUNTS Download Ref No : NSE/FA/28735 Date : January 30, 2015 Circular Ref. No : 3/2015 Annexure 1 ETF Symbol

RELBANK BANKBEES KOTAKBKETF RELCONS RELDIVOPP INFRABEES PSUBNKBEES KOTAKPSUBK RELCNX100 ICNX100 CPSEETF JUNIORBEES M100 RELGRNIFTY RELNIFTY IIFLNIFTY BSLNIFTY INIFTY QNIFTY M50 KOTAKNIFTY NIFTYBEES

Underlying Index

Bank Nifty Bank Nifty Bank Nifty CNX Consumption CNX Dividend Opportunity CNX Infra Index CNX PSU Bank Index CNX PSU Bank Index CNX100 CNX100 CPSE Junior Nifty Midcap Nifty Nifty Nifty Nifty Nifty Nifty Nifty Nifty Nifty

Bid - Ask Quote Size 250 250 250 100 100 100 100 100 100 100 100 100 100 250 250 250 250 250 250 250 250 250

Bid - Ask Spread (in bps) 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.60 0.50 0.60 0.60 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50

Note: Bid-ask spread in bps would be based on previous day close price on exchange. In case of no trading in the ETF, NAV would be considered in place of closing price.

Telephone No 26598142

Fax No 26598394

Email id [email protected] [email protected]

Regd. Office : Exchange Plaza, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051

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