National Commodity and Derivatives Exchange of India has announced that 40 warehouses associated with it have received Warehouse Development and Regulatory Authority registration and another 250 have applied for registration.
The exchange has 500 accredited warehouses and all of them have to get themselves registered with the authority before the end of this year according to commodity market regulator Forward Markets Commission directive.
The new directive was fallout of the Rs 5,600-crore settlement default by the National Spot Exchange which allowed traders to take sell position without the backing of commodity at the warehouses.
Stocks in the 40 warehouses approved by the authority are located in Rajasthan and have goods worth Rs 1,500 crore.
Mahesh Tiwari, Executive Vice-President, NCDEX, said another 250 warehouses from Rajasthan have filed for registration and the exchange would get all its accredited warehouse registered before the FMC deadline.
The exchange registers a daily turnover of Rs 6,000 crore.
(The writer is in Jaipur at the invitation of NCDEX)