NMCE settles July commodity contract through eNWR

Commodity bourse NMCE today said it has for the first time settled delivery obligation, under the July contract, by issuing electronic negotiable warehouse receipts (e-NWR) offered by the National E-Repository Ltd.

As on July 14, the exchange has issued 517 eNWR. Of these, 397 have been settled in Kerala for the rubber July contract, the NMCE and NERL said in a joint statement.

"The contract settlement through eNWR is hassle free and convenient to market participants. Warehousing regulatory environment will help bring more participation in commodity exchanges as compared to transacting in physical warehouse receipts," NERL CEO and Managing Director Kedar Deshpande said.

Going forward, all clients and depositors of NMCE keen to deliver and receive the commodities will have to mandatorily open a client repository account with NERL.

eNWR allows transfer of ownership of a commodity stored in a warehouse without having to deliver the physical commodity. These receipts are issued in negotiable form, making them eligible as collateral for loans.