Sebi on Wednesday asked the exchanges handling the agri-commodity derivatives to create a fund for farmers and FPOs in which the regulatory fee forgone by the regulator would be deposited. Besides, it has issued framework including action plan and guiding principles for the utilisation of fund.
In September last year, the regulator came up with an idea to levy a nominal fee of Rs 1 lakh per exchange instead of levying charges based on turnover slab rates and proposed to set up a fund with the fee foregone by it.
Sebi on Wednesday said it has been decided that the stock exchanges dealing with agricultural commodity derivatives shall create a separate fund earmarked for the benefit of farmers/FPOs (farmers producer organisations) in which the regulatory fee forgone by Sebi shall be deposited.
Such action plan shall be drawn up by the 10th of April of the year in which the fund has to be utilised, it added.
The exchanges would be required to disseminate the details of the action plan on their websites under intimation to Sebi.
The earmarked fund shall not be clubbed with any other funds such as Investor Protection Fund, Investor Services Fund, and Corporate Social Responsibility Funds, Sebi stated.
Factors like waiver or subsidy in warehousing charges, reimbursement of cost of bags provided to farmers and FPOs for deposits on exchange platform, and subsidising of broker fee for farmers, among others, should be considered by exchanges for preparing action plan.
