Kochi November 4, 2017 CDSL Ventures Limited (CVL) CDSL Insurance Repository Limited (CDSL IR) CDSL Commodity Depository India Limited (CDSL)

Warehousing Development and Regulatory Authority (WDRA) Warehousing Development and Regulatory Authority (WDRA) is a regulatory body set up by the Government of India – Warehousing (Development & Regulation) Act 2007 to make provision for the development and regulation of Warehouses, Negotiability of warehouse receipts, promote orderly growth of the warehousing business and to create a well-developed ecosystem.

Vision - To be the Commodity Repository of Choice Our Mission &Vision Name - CDSL Commodity Repository Limited Mission – To provide cost efficient and convenient Commodity Repository Services with robust technology solutions Vision - To be the Commodity Repository of Choice

Entities in Repository system Client Repository Participant Warehouse / WSP Assayer Clearing Member Clearing Corporation/ House

Client Objectives: By opening a Commodity account with a RP Depositor wishing to open commodities account shall submit an online KYC application through CCRL portal or physical application in the requisite format: Types of Account: Individual Non-Individual Proprietary Concern Partnership Firm Corporate Body Trust Society Bank FPO Clearing Member Trading Member Clearing Corporate / Clearing House Processor NBFC NGO LLP Objectives: By opening a Commodity account with a RP of CCRL, investors can carry out the following activities:- Deposit of Commodities Holding commodities through eWR or eNWR Deliver (sell) / receive (buy) commodities in eNWR form for trades done on commodity exchanges, off-market or for any other reason. Pledge / Depledge the eNWRs/ eWRs held in the commodities account. Invoke the eNWRs held in the commodities account Freeze/unfreeze commodities Withdraw the commodities from the Warehouse eAuction commodities

Entities in Repository system Client Repository Participant Warehouse / WSP Assayer Clearing Member Clearing Corporation/ House

Repository Participant Selection Criteria for RPs: Entity RBI/ SEBI registered entity WSP as per CCRL criteria Fit and proper As per CCRL Objectives: The main objective of on-boarding of a Repository Participant (RP) in CCRL to: Provide repository services to depositor/ clients/ commodity holders. To allow transactions by depositor/ client in the Repository system i.e. deposit, transfer, pledge, withdrawal etc. Benefits: Variety of client accounts in Commodity Repository. Wide range of commodities listed by WDRA. Number of transactions are expected to be multiple times than what is currently happening in limited commodity space without any regulated Repository system in place. Warehouse can not unilaterally take action. Complete integration of RP back-office with Repository system. Functions of RP Account Opening KYC of clients account Account maintenance Deposit On-market transfer Off-market transfer Inter-repository transfer Pledge Pledge Closure Pledge Invocation E-auction Export Reports Errors & Omission

Entities in Repository system Client Repository Participant Warehouse / WSP Assayer Clearing Member Clearing Corporation/ House

WSP / Warehouse Deposit Functions of WSP / Warehouse Selection Criteria for WSP / Warehouse : Entity WDRA registered Warehouse / WSP Fit and proper As per WDRA Objectives: The main objective of on-boarding of a WSP / Warehouse in CCRL to: To accept physical deposit of commodities by clients and to generate eWR / eNWR. Allow clients (commodity owners) – extension, error rectification, withdrawal, pledge request commodity confirmation, etc. Functions of WSP / Warehouse Deposit eWR/eNWR Generation Extension of validity Error Rectification Withdrawal Export Reports Reconciliation

Entities using the Repository system Client Repository Participant Warehouse / WSP Assayer Clearing Member Clearing Corporation/ House

Assayer Registered warehouse appointed Assayer The main objective of Assayer: To update / submit grading and quality parameter details against deposit of commodities as per testing result. Functions of Assayer Updating test results for commodity deposited

Entities in Repository system Client Repository Participant Warehouse / WSP Assayer Clearing Member Clearing Corporation/ House

Clearing Member Objectives: The main objective of Clearing Member in CCRL to: To export report (pool holding) and transfer the commodity to buyer client account. Functions Clearing module Pool to client transfer Export Reports

Service Cycle ASSAYING DEPOSITOR RP / WH OFFICE RP Branch E-NNWR DEPOSITOR RP / RP Branch WAREHOUSE WH OFFICE ASSAYING E-NWR BENEFICIARY HOLDER WAREHOUSE OFFICE PLEDGEE (FUNDING) ON MARKET TRANSFER OFF MARKET TRANSFER E - AUCTION PHYSICAL DELIVERY

Modules in Repository System Client Account Opening Module (Through RP) Client Account Opening Module (Through RP Branch) Deposit Module – RP/WH/Client Portal Deposit & eWR / eNWR Generation Module – Warehouse Transfer Module Pledge Module De-Pledge Module Pledge Invocation Module e-Auction Module Withdrawal Module Rectification of Errors Module Freeze / Un-freeze Module Reconciliation Module

Client Account Opening Module (Through RP) Option 1 Online request by client through portal. Scanning and uploading required documents by client. e-payment of fees by client. OTP/ biometric authentication (of individual/ authorized representative) by RP and account opening by RP. Option 2 Client visit RP Branch/ Warehouse and submit supporting documents and fees Scanning and uploading documents by RP Branch Verification, OTP/ biometric authentication and account opening by RP Option 3 Client visits RP with required documents and account opening form. Registration, scanning and uploading by RP Payment of fees by client OTP/ biometric authentication and account opening by RP Verification mail to clients email address Opening and Activation of account Account number intimation to client via SMS, e-mail or physical copy. Agreement / T&C between client and RP

Client Account Opening Module (Through RP Branch - WH) Client account opening initiation through RP Branch - WH Depositor visits warehouse RP branch captures Depositors information Biometric verification /OTP by RP Opening of account with locked status Online dissemination to RP and dispatch of physical documents to RP Verification by RP and opening of account or activation of account System generated Client Master hand delivered / dispatched to client Limited functions of RP usable by RP branch (Client account opening initiation). Separate users for RP branch and warehouse functions Stringent Compliance as Agent of RP

Deposit Module – RP Initiation through RP Deposit of Commodity request submitted to RP through client portal or physical form. Verification and entry by RP. Intimation to Depositor (Unique Verification code) by Repository. Intimation to WH/WSP about deposit of Commodity. Physical Deposit of commodity at Warehouse subject to KYC formalities, account opening statement/ unique authorization code of depositor/ authorized representative Generation of eWR Quality check and Grading entry by Assayer agency Acceptance by WH/WSP Generation of eNWR Intimation to client, RP, Warehouse/WSP and Repository. Email / Printed eNWR provided to Client

Deposit & eWR / eNWR Generation Module - Warehouse Initiation through Warehouse Client visit to Warehouse for deposit of commodity. Deposit entry by WH Intimation to RP about client and deposit of commodity. Validation of Depositor/Authorized representative using OTP. Generation of eWR Quality check and Grading entry by Assayer agency Acceptance by WH/WSP Generation of eNWR Intimation to client, RP, Warehouse/WSP and Repository. Email / Printed eNWR provided to Client

Transfer Module Off – Market Transfer On – Market Transfer Submission of transfer request by Seller client to Seller client RP Intimation to Repository about transfer of eNWR Intimation to Buyer RP by Repository about initiation of transfer request Submission of receipt request by buyer Intimation to Repository about receipt request of eNWR Transfer of eNWR Intimation to seller and buyer clients, RP, Warehouse/WSP and Repository. On – Market Transfer Submission of transfer to pool account request by Seller client to Seller client RP Intimation to Repository and Exchange about transfer of eNWR Clearing house/ corporation to register as user. Clearing house informs settlement obligation of user clients. Clearing Members are informed simultaneously. eNWRs are frozen till settlement of funds. Transfer of eNWRs directly to Buyer client’s account.

Pledge Module Pledge Application of Pledge creation by client to RP through portal or physical form. RP to initiate pledge request. Pledge initiation request to Warehouse/WSP Confirmation of request by Warehouse/WSP Pledge creation completion by Pledgee Intimation to Repository Record update in Repository, Pledgee, Warehouse, RP, Clients account. Intimation to Commodity Owner.

De-Pledge Module De-Pledge Application for de-pledge of eNWR by pledgor client through portal or physical form. Intimation to Repository about de-pledge of eNWR / eWR. Intimation to pledgee by Repository about initiation of de-pledge request by pledgor. Intimation to Repository about confirmation of de-pledge. Record update in Repository, Pledgee, Warehouse, RP, Clients account. Intimation to Commodity Owner.

Pledge Invocation Module Application for pledge invocation of eNWR by Pledgee Intimation to Repository about invocation of pledge of eNWR / eWR by RP. Freezing of Pledger account for the said eNWR / eWR. Request verification by Repository Record update in Repository, Pledgee, Warehouse, RP, Clients account. Intimation to Commodity Owner.

e-Auction Module Functions of e-Auction module User Registration Following entities can initiate e-auction and objective: Commodity Owner (CO) - for his/her holdings. WSP / Warehouse - For goods stored for which either due to issues related to warehouse storage charges payment by the CO or the goods are getting deteriorated and warehouse has given sufficient notices to the CO to remove them as per WDRA guidelines. Pledgee - If the client (Pledgor) who has defaulted in repayment of loan. Users and New User Registration Bidder Registration Seller Registration Functions of e-Auction module User Registration Transfer of eNWR Creation of RFQ by seller View of RFQ by bidder Demand for RFQ by Bidder View of RFQ demand by seller. Placing of bids Modification and Cancellations of bids Post Auction Activities Export Reports

Withdrawal Module Withdrawal Beneficiary Holder / Authorized representative comes to collect commodity at warehouse. Intimation to Repository about withdrawal of commodity Validation of Beneficiary Holder information by RP KYC validation of Commodity Holder / Authorized representative by WH/WSP Confirmation of request and delivery of commodity to client by WH/WSP. Record update in Repository, Warehouse, RP, Clients account. Intimation to Commodity Owner.

Rectification of Errors Module Rectification based upon Regulatory action Extension of validity Rectification of Errors: Error by WSP Error by RP - Wrong transfer cases Error by Assayer

Freeze / Un-freeze Module Client may freeze its account and/or the eNWR or specific quantity by making a request to RP RP may freeze client account and/or the eNWR or specific quantity On receipt of orders from WDRA, Central or State Government or any order by Court, Tribunal, Disciplinary Action Committee or any other statutory authority Un-freeze Client may un-freeze its account and/or the eNWR or specific quantity by making a request to RP RP may freeze client account and/or the eNWR or specific quantity On receipt of orders from WDRA, Central or State Government or any order by Court, Tribunal, Disciplinary Action Committee or any other statutory authority

Reconciliation Module Reconciliation between Repositories EoD Inter Repository Reconciliation Reconciliation with Warehouse Quantity of commodity held by individual account holders through our Repository. Reconciliation and reporting to WDRA.

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