NCDEX tightens physical delivery norms

Know Your Depositor now mandates declaration by depositor on benefit

National Commodity & Derivatives Exchange (NCDEX) today announced tighter measures to strengthen physical delivery process at exchange approved warehouses.

The Know Your Depositor (KYD) documentation process at the time of accepting deposits will now include declaration by depositor conceding he is the sole beneficiary of deposited goods.

This declaration will have to be provided for every deposit. The exchange's move follows Sebi's strict measures on agri-commodities and the exchange suspending castro seed futures.

"Exchange delivery system is very robust and the implementation of the additional declaration process will further strengthen the deposit process. This will help in strengthening market integrity," said Mr Samir Shah, MD & CEO, NCDEX.

Participants will need to comply with new documentation (Transaction Wise Detail Form) forming part of the KYD process with immediate effect.