A farmer empties a basin of onions onto a tractor trailer at the Agriculture Produce Market Committee wholesale market in Umrana. (Photographer: Dhiraj Singh/Bloomberg)

SEBI Issues Norms To Levy Rs 1 Lakh Per Exchange On Agri-Commodity Derivatives Turnover

The Securities and Exchange Board of India has drawn up a framework to levy nominal regulatory fee of Rs 1 lakh per exchange on turnover arising from agricultural commodity derivatives, instead of levying charges based on turnover slab rates, a move that is expected to benefit farmers.

The decision comes after the board of the SEBI in its meeting last month approved a proposal in this regard.

The government, SEBI and exchanges are taking various steps to promote agricultural commodity derivative segment so that the benefits of agricultural commodity derivatives are passed on to farmers and farmers producer organisations.

In tandem with these efforts, the regulator in a notification on Wednesday said “the recognised stock exchanges shall pay a flat regulatory fee of Rs 1 lakh on aggregate value of the transactions on agricultural commodity derivatives.
Securities and Exchange Board of India.

The markets watchdog has amended its regulatory fee on Stock Exchanges Regulations, which came into effect on April 1, 2018.

In order to pass on the desired benefits from reduction of regulatory fees, the SEBI board last month said exchanges that were dealing with agricultural commodities derivatives will create a separate fund earmarked for the benefit of farmers or farmers producer organisations.

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Such regulatory fees forgone by the markets regulator will be deposited and utilised exclusively for the benefit of farmers and easy participation by them and farmers producer organisations in the agri-derivatives market, as per the board.

"The necessary guidelines for utilisation of the proposed fund will be issued in due course," the market regulator had noted.