The Securities and Exchange Board of India vide its notification dated 19th October 2020,has decided to permit the Stock Exchanges to utilize the fund created for farmers and FPOs for reimbursement of mandi tax and costs incurred by them on storage and transportation of items.
Farmers/FPOs can reimburse the charges incurred towards assaying, cleaning, drying, sorting, storage and transportation in respect of goods deposited in warehouses accredited with Clearing Corporations with an intention to deliver them on Exchange Platform for which exchange specific eNWR is generated.
Fees/cost levied by Clearing Corporation, if any, on Farmers/FPOs in the process of their participation in commodity derivatives trading can be reimbursed.
Further, in order to enhance transparency, the Stock Exchanges are advised to make a disclosure regarding the corpus of the fund and its utilization, on their website, on a monthly basis
The Stock Exchanges are further advised to include the details of the corpus of the fund and its utilization in the Monthly Development Report (MDR).
