Mumbai: Markets regulator Sebi on Wednesday directed exchanges dealing with agri-commodity derivatives to create a fund for farmers and farmers producer organisations (FPOs) in which the regulatory fee forgone by the regulator would be deposited.
Sebi has also come out with a framework that details action plan and guiding principles for the utilisation of fund.
The regulator had last year decided to levy a nominal fee of `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.
“The exchanges dealing with agricultural commodity derivatives shall create a separate fund earmarked for the benefit of farmers/FPOs in which the regulatory fee forgone by Sebi shall be deposited,” the circular from the markets regulator said.
For the fund, Sebi said the exchange needs to draw an action plan for full utilisation of the foregone fee in any financial year to be utilised during the succeeding financial year.
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.
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. The earmarked fund shall not be clubbed with any other funds such as Investor Protection Fund, Investor Services Fund, and CSR Funds, Sebi said.
