Set up fund for farmers: Sebi to Commexes

Set up fund for farmers: Sebi to Commexes

farmerindia-PTI

NEW DELHI: Sebi on 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 an 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 on Wednesday said, “It has been decided that the stock exchanges dealing with agricultural commodityderivatives 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 April 10 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.

[“source=economictimes.indiatimes”]