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SEBI has issued a consultation paper seeking public comments on a framework for Warehouse Service Providers (WSP), warehouses, assayers and other allied service providers engaged in non-agricultural goods such as precious metals, gems and stones, metals, minerals and alloys but excluding crude oil, electricity and natural gas. Strengthening warehousing segment is among the steps the government and regulator are taking to link price discovery of commodity trading to domestic markets, experts say.
Agricultural and processed goods, derivative contracts and non-agricultural goods are also traded on stock exchanges but there is no uniformity in storage norms specified by such exchanges. In order to ensure good delivery by clearing corporations, SEBI is considering prescribing a broad set of standards and norms for compliance by CC-accredited storage agencies for storage of physically delivered non-agri goods, SEBI said.
Broadly, SEBI said there should be tripartite agreement between exchanges, CCs and warehouses, which should be accredited. The regulator has sought comments on eligibility, financial net-worth, experience and other criteria for warehouse promoters.
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