Sebi to levy Rs 100,000 per exchange on agri-commodity derivatives turnover

Instead of levying a regulatory fee at the prescribed turnover-based slab rates, a nominal regulatory fee at a flat rate of Rs 100,000 per exchange will be levied

Markets watchdog Securities and Exchange Board of India (Sebi) will levy a 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 government, Sebi and exchanges are taking various steps to promote agricultural commodity derivative segment so that the benefits of agricultural commodity derivative are passed on to the farmers and Farmers Producer Organisation (FPOs).

Keeping in line with these efforts, Sebi board on Tuesday decided that "instead of levying regulatory fee at the prescribed turnover based slab rates, a nominal regulatory fee at a flat rate of Rs 100,000 per exchange, would be levied on turnover arising from agricultural commodity derivatives".  

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

Such regulatory fee forgone by Sebi will be deposited and utilised exclusively for the benefit of farmers and easy participation by them and FPOs in the agri-derivatives market.

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