Organisation : Securities and Exchange Board of India
Service Name : Scheme for Conduct Of Awareness Programs For Commodities Derivatives
Applicable States/ UTs : All India
Home Page : https://www.sebi.gov.in/
Terms & Conditions : https://www.statusin.in/uploads/37461-CommoditiesDeri.pdf
SEBI Scheme for Commodities Derivatives
The Preamble of the Securities and Exchange Board of India (SEBI) describes the basic functions of SEBI as
Related : SEBI Application for Refund Form : www.statusin.in/21806.html
“…to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto”.
As per the Securities Contracts Regulation Act (SCRA), 1956 amendment dated September 28, 2015 the definition of securities also includes commodities derivatives.
In this regard, report on IOSCO Principles for the Regulation and Supervision of Commodity Derivatives Markets mentions that the IOSCO Principles are “set out to ensure that the physical commodity derivatives markets serve their fundamental price discovery and hedging functions, while operating free from manipulation…”
Overview
With a view to spreading awareness about commodities derivatives among various stakeholders of commodities derivatives market viz.
1. Farmers
2. Farmers’ Associations
3. Farmer Producers organisations (FPOs)
4. Hedgers
5. Producers
6. Manufactures
7. Processors,
8. Traders,
9. Exporters
10. Importers
11. End-users, consumers etc.
a Scheme has been formulated whereby eligible entities interested in conducting commodities awareness programs may approach SEBI for recognition.
SEBI may, under this scheme, recognize entities which can impart education in the field of commodity derivatives on topics such as forward/ futures contracts, hedging, risks etc., related to the commodities derivatives market.
SEBI may carry out awareness programs in the prescribed format(s) with entities in the field of education/ other developmental/ ancillary activities pertaining to commodities derivatives.
The aim of the Scheme is to reach the farmers/ producers, farmers cooperatives/ groups etc. in various parts of the country.
Recognised CoTs are expected to organise programs in small towns/ rural areas or places where majority of target participants are concentrated etc. so as to provide easy access to farmers and other stakeholders as mentioned above.
Eligibility Criteria For Recognition Of CoTs
Applicants can be a trust/ society/ company /institution/ NGO etc. in the field of education/ other developmental/ ancillary activities pertaining to commodity derivatives which are traded on commodity exchanges, to become Commodities Derivatives Trainers (CoTs) for SEBI.
This scheme envisages that entities may apply to SEBI to become CoTs in the format prescribed (Format is given in the annexure) provided following conditions are fulfilled before application :
1) Applicant may be a trust/ society/ company/ institution /NGO etc. and have a valid certification of incorporation/ trust deed/ registration/ approval under the law of the land.
2) Applicant is in existence for atleast three years at the time of applying to SEBI and has experience of working with the erstwhile Forward Market Commission or any Central or State Government body etc. in the area of education/ other developmental/ ancillary activities pertaining to commodities derivatives.
3) Experience of around 3 years in the field of training/ dealing in Commodity Derivatives.
Proposed Reimbursement
CoTs must adhere to austerity given the fact that the programs are expected to be conducted in rural areas where the cost of living is lower compared to urban areas.
Considering that similar programs may be done in rural areas, a reimbursement of upto `50,000 (`Fifty Thousand) per CAP may be made by SEBI for the costs incurred by CoTs after due submission of requisite bills in original including supporting bills in case some services such as making of banner etc. are outsourced by the CoTs and duly signed attendance sheet/ certificate.
However, in case SEBI is funding the said program, funding/ sponsorship from any other source, will not be acceptable. These programs will be conducted after obtaining prior approval from SEBI.