CDSL facilitates "Dematerialisation of warehouse receipts"

1. CDSL is pleased to inform you the commencement of its facility of maintaining records of warehouse receipts in dematerialized form. CDSL has accordingly tied up with two commodity exchanges "National Commodity and Derivatives Exchange" (NCDEX) and ”Multi Commodity Exchange of India Ltd” (MCX) for providing the said facility.

2. Clients wishing to hold warehouse receipts in their demat account have to open separate demat accounts with the aforesaid DPs and execute separate agreements.

The procedure for opening of accounts for holding electronic warehouse receipts is the same as used for opening of accounts for holding securities.

3. In order to distinguish the demat accounts opened for holding electronic warehouse receipts from normal demat accounts, CDSL has assigned separate product codes under which these accounts can be opened.

4. Clearing Members (CMs) in commodities would have to open separate CM Clearing account for the purpose of settlements with the empanelled DPs.

5. Initial credit of electronic warehouse receipts in the demat accounts would be effected by way of corporate actions. In order to demat commodities, client will have to deliver physical commodities to the designated warehouses. Commodities are then assayed to confirm the quality and quantity of goods. The Warehouse will electronically inform the description of commodities to the Registrar and Transfer Agent (RTA). Based on this information, RTA will initiate a corporate action in the CDSL system for crediting the account of the BO.

6. If a client wishes to take delivery of commodities from the warehouses, they will have to submit a remat request form (RRF) to the DP. On the basis of the said form, DP will setup a remat request in the system. On the duplicate copy of RRF, DPs will write the remat request number (RRN), attest the signature of client by putting DPs seal and signature and will handover the same to the client. On the basis of the said acknowledgement copy, client will be able to get delivery of commodities from the warehouses.

7. The procedure for transfer and pledge of demat commodities would be the same as applicable for securities.

8. The commodities admitted in the Depository will have an expiry date.The commodities held in the demat form, after the expiry date will not be eligible for delivery for settlement obligations.Thus revalidation process has to be followed in order that the commodity can be delivered in settlement.

9. BOs / CMs wishing to open demat accounts for holding warehouse receipts in the dematerialized form can approach the above-mentioned DPs for further details. The "Search" facility for addresses of DPs is available at CDSL's website www.cdslindia.com.

The following is the list of DPs of who has been empanelled by the exchanges through whom accounts can be opened for holding warehouse receipts in electronic form.