SEBI vide Notification: SEBI/HO/CDMRD/DNPMP/CIR/P/2020/206 dated 19.10.2020
In order to encourage the participation of Farmers/Farmers Producers Organizations (FPOs) in agricultural commodity derivatives markets, the Stock Exchanges have created a separate fund, out of the regulatory fee so forgone by SEBI. The Stock Exchanges have been permitted by SEBI to utilize the said fund exclusively for the benefit of and easy participation by Farmers/ FPOs in the agricultural commodity derivatives market, in accordance with the guidelines specified vide a SEBI circular dated March 20, 2019.
It has been decided to permit the exchanges to utilize the fund for additional activities, including reimbursement of mandi tax and any other mandi cess levied against the goods deposited in warehouses accredited with clearing corporations for the purpose of delivering on the exchange platform. In addition, the funds can be used for reimbursing the charges incurred by farmers or FPOs towards assaying, cleaning, drying, sorting, storage and transportation in respect of goods.