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FMC directs commodity exchanges to register warehouses with WDRA

04 Sep 2013 Evaluate

Forward Markets Commission (FMC) has issued a directive to national commodity exchanges MCX, NCDEX, NMCE, ICEX, ACE and UCX to register their warehouses with Warehousing Development & Regulatory Authority (WDRA) by the end of this year. The regulator has taken this step in the wake of National Spot Exchange (NSEL) payment crisis and to ensure quality as well as quantity of the produce lying with them

For better regulation of warehouses, FMC has asked all national commodities bourses to register their warehouses with WRDA and obtain the accreditation certification before December 31. It has also asked the exchanges to accredit only those new warehouses at their end which have already been registered and accredited by WDRA.

Besides, the regulator has also sought comments from exchanges for prescribing norms for eligibility of warehouse service providers by September 10. WDRA regulates warehouses and the receipts therein for orderly development of the business.

FMC is overseeing the payment of Rs 5,600 crore dues by the National Spot Exchange (NSEL) to investors after the exchange shut its business due to violation of some rules, like allowing trade without having stocks.

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