Create fund for farmers & FPOs, Sebi tells exchanges dealing in agri derivatives
New Delhi: Sebi Wednesday asked the exchanges dealing with 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 had decided 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 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."
For the fund, Sebi said the exchange needs to draw an action plan for full utilisation of foregone fee in any financial year to be utilised during the succeeding financial year.
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 said.
Factors like waiver or subsidy in warehousing charges, refund of cost of bags provided to farmers and FPOs for deposits on exchange platform, and subsidising of broker fee for farmers,should be considered
by exchanges for preparing action plan.