The Hindu Business Line : NCDEX ties up with CDSL for demat trading

NATIONAL Commodity & Derivatives Exchange Ltd (NCDEX), Mumbai, has added a second depository, Central Depository Services (India) Ltd (CDSL), for its participants to hold their commodities stocks in electronic format.

This is in addition to the already existing arrangement it has with National Securities Depository Ltd (NSDL) since November 2003.

NCDEX has pioneered the concept of holding commodity stocks in electronic format.

"With the addition of CDSL, our members and their constituents will now have an additional depository for holding the commodities in electronic form. Under the arrangement with the depositories there will be common commodity identification numbers (Com-Ids), which would be used by them for recording the holding of commodities in electronic form.

The scheme also provides for inter-depository transfers on the lines similar to the one currently being followed in the securities market", said Ms Meher Baburaj, Chief Operating Officer of NCDEX.

As per the arrangement, Karvy Consultants Ltd will be the Registrar and Transfer Agents.

They would interface with accredited warehouses and advice CDSL electronically to credit/debit the beneficiary accounts when commodities are deposited/withdrawn.