1. Warehousing infrastructure and its ancillary services play a critical role in the delivery mechanism of the Commodity Derivatives Market. A robust &credible warehousing infrastructure is sine qua non for an effective Commodity Derivatives Market that can inspire confidence amongst the market participants and other stake holders. At the time of the merger of FMC with SEBI, with a view to ensuring good delivery of commodities during settlement of futures contracts, SEBI decided to assign the responsibility of settlement of the futures contact, including good delivery of the commodities, to the commodity derivatives exchanges.
2. It is incumbent upon the commodity derivatives exchanges to frame norms for warehouse service providers (WSP), warehouse, assayers and other allied service providers engaged by them so as to put in place a robust mechanism, for ensuring good delivery as mandated under the SECC Regulations. The existing norms for exchange accredited WSPs, warehouses and assayers have been reviewed. On the basis of various observations made/inputs received during visits to different warehouses, meetings held with the WSPs and national commodity derivatives exchange, SEBI is considering to revise the norms for the WSPs, warehouses, assayers etc. while superseding the earlier norms.
3. In order to take into consideration views of various stakeholders, public comments are solicited on the proposed norms as placed in Annexure- A.