Sebi to charge only Rs 1L per exchange on agri derivatives turnover

To benefit farmers, Sebi Tuesday decided to levy a a flat fee of Rs 1 lakh per exchange on turnover arising from agricultural commodity derivatives, instead of levying turnover-based slab rates.

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 Organization (FPOs), Sebi Chief Ajay Tyagi told reporters here.

Keeping in line with these efforts, Sebi board has approved that "instead of levying regulatory fee at the prescribed turn-over based slab rates, a nominal regulatory fee at a flat rate of Rs 1 lakh 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 has proposed that exchanges dealing with agricultural commodities derivatives will create a separate fund earmarked for the benefit of farmers/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.

Tyagi said that necessary guidelines for utilisation of the proposed fund will be issued in due course.

In addition, the board has cleared a proposal for interoperability among clearing corporations - a move that will reduce trading cost.

At present, different bourses have their own clearing corporations, which handle settlement of trades on the respective stock exchanges.

Interoperability among clearing corporations provides for linking of multiple clearing corporations. It allows participants to consolidate their clearing and settlement functions at a single clearing corporations, irrespective of the stock exchange on which the trade is executed.

"It is envisaged that the interoperability would lead to efficient allocation of capital for the market participants, thereby saving on cost as well as provide better execution of trades," Tyagi said.