NCDEX gets all its warehouse service providers accredited by regulator

Our Bureau Mumbai | Updated on January 20, 2018

The National Commodity and Derivatives Exchange has completed the WDRA accreditation of all the 381 warehouses providing services to it. The accreditation means that the warehouse is compliant with all the Warehousing Development and Regulatory Authority (WDRA) norms, which include recording online details of all commodities stored, maintaining the quality of the commodities, and ensuring the fumigation process is followed.

The focus on regulating warehouses followed the NSEL scam when the commodities that were documented by the exchange were found to be missing from the warehouses, leading to settlement default of ₹5,600 crore. Registration of all NCDEX warehouse service providers (WSPs) with WDRA will not only support the physical delivery ecosystem of the commodity market but also give comfort to depositors and value-chain participants, said the exchange in a statement. Capital and commodity market regulator SEBI has shown interest in bringing warehouses under its ambit for smooth trading on the exchange’s platform.

Samir Shah, MD, NCDEX, said the WDRA accreditation process for WSPs is a big step in the direction of strengthening the warehousing facilities of the agri-economy.

Published on May 06, 2016

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