Ludhiana Stock Exchange became the second bourse in India to introduce modified carry forward system after Bombay Stock Exchange on 6 April 1998.
On the same date, LSE also introduced a settlement guarantee fund (SGF).
The SGF guarantees settlement of transactions and the carry forward facility provides liquidity to the stock market.
The LSE Securities got the ticket as sub-broker of the NSE.
In 1998, the exchange also got permission to start derivative trading.