 "NCDEX")
The National Commodity and Derivatives Exchange Ltd (NCDEX) on Tuesday said it has decided to tighten deposit operations at warehouses audit checks to ensure the quality of deposits.
"We have taken up additional measures for exchange registered warehouse service providers, aimed at tighter controls of quality and further strengthening the warehousing ecosystem," NCDEX said in a statement in Mumbai.
The exchange has mandated that the approved warehouses would not be available for transacting the business of deposit/delivery of commodities on all Saturdays, Sundays and trading holidays of the exchange.
The warehouses would, however, remain open and be available to the participants for administrative tasks like submission of documents, clarifications, accounting, general routine maintenance and other activities for the upkeep of the warehouses. This will help in the stronger control and make the process less vulnerable to manipulation, it said.
NCDEX is committed to ensuring good delivery of commodities and immediately responds to any feedback or concerns of market participants. Proactive checks and quality audits are regularly done to verify the quality of stocks and ensure strict adherence to the exchange norms, said the statement.
Recent tests of randomly chosen 22 lots at the Gondal delivery location showed that all 22 lots passed the NCDEX quality specifications for coriander.
NCDEX applies the same, stringent quality checks and assurance processes at all its warehouses across the country, it added.
"We remain vigilant about the stocks deposited in our warehouses and have suitable checks and controls in place to ensure adherence to our norms. There is absolutely nothing to worry for the buyer on the quality front," said Samir Shah, managing director & chief executive officer, NCDEX.
Recognising that warehousing infrastructure and its ancillary services play a critical role in the delivery mechanism of the commodity derivatives market, the exchange has strict guidelines and processes in place for the Warehouse Service Providers (WSPs). The exchange mandates the WSP to ensure deposits meet the quantity and quality parameters as per the exchange contract specifications, the release said.
The exchange ensures that independent audit of the stocks and other facilities in the warehouses, is carried out by engaging expert agencies, at regular intervals, it added.
