Sebi issues norms to levy Rs 100,000 on agri-commodity derivatives turnover

Sebi has drawn up a framework to levy nominal regulatory fee of Rs 100,000 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 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 (FPOs).

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 100,000 on aggregate value of the transactions on agricultural commodity derivatives".

The markets watchdog has amended Sebi's (Regulatory Fee on Stock Exchanges) Regulations, which came into effect from April 1, 2018.

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

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

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