NCDEX tightens deposit ops at warehouses, introduces audit checks to ensure quality deposits

MUMBAI | AHMEDABAD | RAJKOT – The National Commodity and Derivatives Exchange (NCDEX) Ltd, today announced additional measures to be taken by exchange registered warehouse service providers, aimed at tighter controls of quality and further strengthening the warehousing ecosystem, additionally the exchange will not be available for deposits on Saturdays, Sundays and Exchange declared trading holidays, but will remain operational for administrative activities, the exchange press release said.

NCDEX is fully 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. Recent tests of randomly chosen 22 lots (which were sampled 100%, that is, samples were drawn from each bag of the lot) 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.

The Exchange has mandated the approved warehouses of the Exchange would not be available for transacting the business of deposit or 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 & other activities for upkeep of the warehouses. This will help in stronger control and make the process less vulnerable to manipulation.

Samir Shah, Managing Director & Chief Executive Officer of The National Commodity and Derivatives Exchange (NCDEX) Ltd

Samir Shah, Managing Director & Chief Executive Officer of The National Commodity and Derivatives Exchange (NCDEX) Ltd

Samir Shah, NCDEX, Managing Director and Chief Executive Officer was quoted in the release saying, “We remain vigilant about the stocks deposited in our warehouses and have suitable checks and controls in place to ensure adherence to our norms. The trust of our participants and the safety and quality of our deliveries is our foremost priority. There is absolutely nothing to worry for the buyer on the quality front. I would urge the participants taking delivery on the exchange platform to utilize the remat assaying facility being offered by the Exchange to verify the quality of goods received.”

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 Exchange ensures that independent audit of the stocks and other facilities in the warehouses is carried out by engaging expert agencies, at regular intervals.

ABOUT NCDEX:

As India’s leading online exchange, NCDEX offers the widest range of benchmark products across agriculture, metals and precious metals. NCDEX brings buyers and sellers together through its electronic trading platform. With a widely held shareholding, it enjoys the distinction of being the only exchange in the country promoted by national-level institutions. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nation-wide reach, technology and risk management skills. www.ncdex.com


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