The National Stock Exchange of India (NSE) has officially announced the rollout of a Liquidity Enhancement Scheme (LES) in Monthly Electricity Futures (Base Load) contracts, aimed at improving market participation and order book depth in India’s power derivatives market.
Initially scheduled to begin on July 11, 2025, the scheme’s launch date has now been revised to July 14, 2025, as per NSE Circular No. NSE/COM/68968.
🔑 Key Highlights of the LES Scheme:
- Effective Date: July 14, 2025
- Duration: 6 months from launch date
- Instrument: Monthly Electricity Futures Contracts
- Participants: Open to eligible NSE commodity derivatives trading members
- Monthly Incentives:
- Market Maker 1 (MM1): ₹85 lakhs
- Market Maker 2 (MM2): ₹45 lakhs
(Subject to fulfilment of all quoting obligations)
🧾 Market Maker (MM) Eligibility Criteria:
To participate in the LES, trading members must meet the following:
- Net worth of ₹5 Crores
- No major disciplinary actions in the past 12 months
- Algo trading registration in commodities
- Demonstrated experience in the power sector (generation, transmission, distribution, EPC, trading, etc.)
Applicants must also submit a signed declaration of eligibility from their compliance officer.
📊 Quote Obligations for Market Makers:
| Line | Contract Type | Min. Bid/Ask Lots | Monthly Presence | Max Spread (₹/MWh) |
| 1 | Near month (MM1) | 3 (each side) | 85% | ± ₹10 |
| 2 | Next/Far month (MM2) | 4 (each side) | 85% | ± ₹10 |
Presence will be tracked from 9:10 AM to 11:20/11:45 PM, including evening sessions. Line 1 performance carries a 90% weight, while Line 2 carries 10%.
📉 Penalty & Incentive Adjustments:
If market makers fall short of the 85% presence requirement:
- 80–85% presence: 25% incentive deduction
- 75–80%: 40% deduction
- 70–75%: 50% deduction
- <70%: No incentive paid
- Early exit penalty: ₹5 lakhs
📝 Application Process:
Interested members must submit their competitive bids in the prescribed format by July 2, 2025 (5 PM). Only one bid (MM1 or MM2) is allowed per member.
Evaluation will follow a grading scale outlined in the circular’s Annexure II.
📩 Contact:
For further details or to apply, contact:
📧 nsecommodities@nse.co.in