FMC directs comexes to register warehouses with WDRA by Dec 31

Looking at the significance of warehousing in commodity trade, the Forward Markets Commission (FMC), the commodity derivatives markets regulator, has directed comexes to register all accredited warehouses with the Warehousing Development and Regulatory Authority (WDRA) mandatorily by December 31, 2013.

In a circular uploaded on its website on Monday, the FMC said that comexes should accredit new warehouses henceforth only after registration and accreditation by the WDRA.

The regulator asked exchange to frame criteria / norms to be prescribed for the eligibility of warehouse service providers with special emphasis on the norms of capitalization and financial adequacy, minimum infrastructure capacity which the service provider must comply with. MDs and CEOs of the exchange may send proposals / feedback and comments on the aforementioned by September 10.

The exchange may also inform about their existing mechanism for redressal of buyers’ grievances regarding quantity and / or quality of the goods delivered to them.