)
The Rajasthan government has exempted warehouses registered by the Warehousing Development and regulatory Authority (WDRA) from stock limit. Rajasthan had imposed stock limit on pulses last month. However, the state officials in their order on stock limit had not exempted WDRA registered warehouses, which had impacted trading on NCDEX. It is the largest derivative exchange for trading in pulses.
As per previous orders of Ministry of Consumer Affairs, WDRA-registered warehouses were exempted from stock limit. NCDEX wrote to the state government to exempt WDRA warehouses from stock limit because for trading or hedging on NCDEX only such warehouses were used.
Samir Shah, MD & CEO, NCDEX said: "We are grateful to the Rajasthan government for recognising the significant role that exchanges play. The policy stability provided by this decision will further boost the confidence of physical market participants in using hedging tools, as advised by the RBI."
