1. Creation & Management of eNWR through Repository Systems

2. Repository System

3. Repository System
WDRA Portal
Inspection Agency
Repository N
Repository Information System
Repository System - The repository system is the central system that connects various entities like warehouses, customers, repository participants and clearing corporations of exchanges.
Warehouse Module - This module enables warehouses to enter information related to issuance of electronic negotiable warehouse receipts against the deposit of commodities (goods) by farmers/traders.
Repository Participant Module -This module connects the customers with the repository for various services in terms of managing accounts of the entities who hold and transact in warehouse receipts.
Clearing Corporation Module – The clearing corporation (CC) is responsible for carrying out clearing and settlement of the trades executed on commodity exchanges.
E-auction Module - This module will facilitate transactions for carrying out auction in case of default of pledged commodity.
Warehouse Module
Repository Module
E-auction Module
Repository Participant
Module
Clearing corp. Module
Assayers
API
API
API
WSP / Warehouses
Repository Participant
Clearing Corporations
A repository is an institution where the warehouses can keep their Negotiable Warehouse Receipts in the electronic form (eNWR) and transactions could be effected on it.
The introduction of repositories in the commodity markets has the potential to transform the manner in which market participants interact with each other.
It is recognized that electronic maintenance of records of warehouse receipts in a dematerialized form resolves the problem of inadequate speed of transaction, process of splitting of Warehouse Receipts, forgery, bad deliveries and loss of receipts etc.
Depositor
Depositor FI
Trader

4. Core services of a Repository
Contract /Appoint Repository Participants and signing the agreements with them
Establish standard Procedures for repository Participant Operations
Monitoring and Surveillance of Repository Participants
Providing appropriate access of Repository services to the users of the Repository;
On-boarding the users of a Repository;
Roles & Responsibilities of Repositories
Provide the core services of a Repository either by itself or through the Repository Participants;
Provide a limited purpose e-auction platform to facilitate the auctioning of pledged goods when the pledgor has defaulted; and
Provide information as and when required by the Authority.

5. Enabling safe and accurate creation, maintenance and cancellation of electronic records for eNWR / eNNWR, based on valid authorisation by the account holder;
Ensure Confidentiality, Integrity, & Avaialability of all Information related to eNWR
Enabling the transfer, pledge or removal of the pledge, e-auction of eNWR ;
Enabling delivery of goods in part or full, underlying the eNWR / eNNWR, through the warehousemen;

6. Users of Repository System
Repository Participant
Warehouseman
Depositor
Financial institution
Exchange
Clearinghouse

7. Roles and Responsibilities of a Repository Participant
To facilitate the opening, management and closing of accounts of users on the Repository;
To identify through documentary and/ or physical verification(KYC), on behalf of the Repository, the identity and address of the users in whose favour a warehouseman intends to issue an eNWR/eNNWR;
To facilitate the issue, modification, transfer, pledge and e-auction of eNWR
Salient feature of eNWR
An eNWR will be available only in electronic form.
The single source of truth for the eNWR will be the repository.
Confidentiality, Integrity & Availability of the eNWR information will be provided by the repository.
An eNWR has a time validity after which it expires.
An eNWR can be split into multiple eNWRs by also splitting the lot associated with the original deposit.
An eNWR can be auctioned under certain conditions such as pledged loan not repaid, on expiry and delivery is not taken and on damage or spoilage of the commodity in the warehouse.
All eNWRs can be traded through off-market or exchanges.

8. Roles and Responsibilities of Warehouseman
Acceptance and providing safe storage facilities of notified commodities to depositors after verification process through KYD;
Issuance of eNWRs / eNNWRs;
Delivery of commodities to the title holder;
Record keeping and reconciliation (including physical verification) at the warehouse and updating the repository;
Updates of attributes of eNWR /eNNWR on the basis of evaluation by assayers;
Regulatory reporting to WDRA and adherence to regulatory requirements;
Facilitate Client account opening by acting as RP agent.
Salient feature of eNWR
An eNWR will be available only in electronic form.
The single source of truth for the eNWR will be the repository.
Confidentiality, Integrity & Availability of the eNWR information will be provided by the repository.
An eNWR has a time validity after which it expires.
An eNWR can be split into multiple eNWRs by also splitting the lot associated with the original deposit.
An eNWR can be auctioned under certain conditions such as pledged loan not repaid, on expiry and delivery is not taken and on damage or spoilage of the commodity in the warehouse.
All eNWRs can be traded through off-market or exchanges.

9. Repositories that have been awarded licenses of Registration by WDRA
CDSL Commodities Repository Limited (CCRL):
Parent Company is CDSL which is a Depository facility.
SEBI granted certificate of commencement for CDSL in Feb 1999.
Incorporation of new company (CCRL) is completed and has been approved by the MCA.
National E Repository Limited (NERL):
NCDEX is a professionally managed on-line multi commodity exchange.
NCDEX is a public limited company incorporated on April 23, 2003 under the Companies Act, 1956.
SEBI granted certificate of commencement for NCDEX in May 9, 2003.
NERL was incorporated on 10 Feb 2017 and approved by MCA.

10. Types of Warehouse Receipts stored in Repository
eNWR
Electronic Negotiable Warehouse Receipt which can be used for deposit and withdrawal of commodities as well as transactions like transfer and Pledge are possible.
eNNWR
Electronic Non Negotiable Warehouse Receipt which can be used only for deposit and withdrawal of commodities.

11. Working Schedule of Repositories
Working Days
The Repository shall operate on all days except Saturday &Sundays and public holidays as notified by the Govt.
Working Hours
The Repository working hours would be 09:30 AM to 05:45 PM on each working day. Repository system shall continue to be available to the Users at all times except for such periods, as may be specified and notified by the Repository, on account of scheduled downtime with respect to maintenance and end of day functions.

12. Management of eNWR/eNNWR

13. Management / Life Cycle of eNWR/eNNWR
Creation and Issuance of eNWR/eNNWR;
Delivery of eNWR/eNNWR;
Transfer of eNWR;
Pledge management of eNWR;
e-Auction;
Salient feature of eNWR
An eNWR will be available only in electronic form.
The single source of truth for the eNWR will be the repository.
Confidentiality, Integrity & Availability of the eNWR information will be provided by the repository.
An eNWR has a time validity after which it expires.
An eNWR can be split into multiple eNWRs by also splitting the lot associated with the original deposit.
An eNWR can be auctioned under certain conditions such as pledged loan not repaid, on expiry and delivery is not taken and on damage or spoilage of the commodity in the warehouse.
All eNWRs can be traded through off-market or exchanges.

14. Pre-Requisite for Issuance of eNWR/eNNWR in Repository System
On Boarding of WSP/Warehouseman in Repository system;
On Boarding (Account opening) of Client / Depositor in Repository system;
Salient feature of eNWR
An eNWR will be available only in electronic form.
The single source of truth for the eNWR will be the repository.
Confidentiality, Integrity & Availability of the eNWR information will be provided by the repository.
An eNWR has a time validity after which it expires.
An eNWR can be split into multiple eNWRs by also splitting the lot associated with the original deposit.
An eNWR can be auctioned under certain conditions such as pledged loan not repaid, on expiry and delivery is not taken and on damage or spoilage of the commodity in the warehouse.
All eNWRs can be traded through off-market or exchanges.

15. On Boarding of WSP/Warehouseman in Repository System
Every Warehouse registered under WDRA shall be eligible to become a User of the repository system for generation and cancellation of eNWR/eNNWR;
Only WDRA registered warehouses can issue eNWR/eNNWR;
Warehouses need to complete certain formalities to be able to provide services through the repository system;
From 26th of September 2017, every warehouseman registered with WDRA shall be on-boarded by the repositories, free of cost.
Salient feature of eNWR
An eNWR will be available only in electronic form.
The single source of truth for the eNWR will be the repository.
Confidentiality, Integrity & Availability of the eNWR information will be provided by the repository.
An eNWR has a time validity after which it expires.
An eNWR can be split into multiple eNWRs by also splitting the lot associated with the original deposit.
An eNWR can be auctioned under certain conditions such as pledged loan not repaid, on expiry and delivery is not taken and on damage or spoilage of the commodity in the warehouse.
All eNWRs can be traded through off-market or exchanges.

16. Client Account Opening in Repository System
The applicant may open an account only as a sole holder /Partnership firm / Association of Persons / Body of Individuals / corporate / trust .
Client is required to open an account with any of the RP by completing KYC. The KYC and accounting opening can be carried out by the warehouseman/WSP if he fulfils the criteria of an RP.
The Depositor/Client account number generated through Repository system shall be referenced by the Depositor / Client for all its transactions in the Repository system.

17. Deposit of Commodities / Creation of eNWR/eNNWR
Depositor needs to open account in repository through RP.
Depositor visits warehouse to deposit commodities.
WSP does KYD validation of depositor. WSP accepts commodities.
WSP sends sample of commodities to assayer for grading.
Assayer grades the commodities and sends the grading information to warehouse.
WSP initiates the creation of eNWR/eNNWR.
Repository stores the eNWR/eNNWR record. Repository updates the account of depositor and WSP with the eNWR/eNNWR information.
Repository intimates RP, depositor and WSP about the issuance of eNWR/eNNWR.

18. Withdrawal of Commodities / Delivery of eNWR/eNNWR
Depositor / eNWR/eNNWR holder requests delivery of commodities through RP.
Request for delivery is routed to repository. Request for delivery gets further routed to warehouse.
WSP checks the owner of eNWR/eNNWR in repository system. WSP does KYD validation of depositor/eNWR/eNNWR holder.
WSP collects the storage charges from depositor/eNWR/eNNWR holder before releasing the commodities.
WSP updates the quantity attribute of eNWR/eNNWR record in repository system.
Depositor/eNWR/eNNWR holder collects the commodities.
Repository updates the account of depositor/eNWR/eNNWR holder and WSP with the updated eNWR/eNNWR information.
Repository intimates RP, depositor / eNWR/eNNWR holder and WSP about the completion of process.

19. Transfer of eNWR (Off Market)
Delivering client puts debit instruction of eNWR online or through RP.
Request gets further routed to repository.
WSP needs to confirm the existence of commodities in the warehouse for the mentioned eNWR.
Receiving client can see the pending warehouse storage charges for the eNWR.
Receiving client puts credit of eNWR request online or through RP. Receiving client can set standing instruction in his account as well.
Instruction from Receiving client gets further routed to repository.
Repository transfers ownership of eNWR from Delivering client to Receiving client. Repository updates the account of RPs, Delivering client , Receiving client and WSP.
Repository intimates RPs, Delivering client, Receiving client and WSP about the transfer of eNWR.

20. Transfer of eNWR (On Market)
Delivering client transfers the eNWR to the clearing member of the exchange.
Trades on exchange are cleared and settled by clearing house.
Clearing member of delivering client instructs its RP to transfer eNWR to clearing corporation towards pay-in.
Upon payout, clearing member of receiving client receives eNWR from clearing corporation and gives instruction to RP to transfer eNWR to buyer account.
Repository updates the account of RPs, Clearing members, Delivering client, Receiving client and WSP.
Repository intimates RPs, Clearing members, Delivering client, Receiving client and WSP about the transfer of eNWR.

21. Pledge Creation
Pledgor puts pledge creation request online or through RP of pledgor.
Pledgor request gets routed to repository.
WSP confirms the existence of commodities in the warehouse.
Pledgee puts pledge creation confirmation request online or through RP of pledgee.
Pledgee request gets routed to repository.
Repository marks the eNWR as pledged and updates the account of pledgor, pledgee and WSP.
Intimation message to RPs, pledger, pledgee and WSP by repository about pledge creation of eNWR.

22. Pledge Closure
Pledgor puts pledge closure request online or through RP of pledgor.
Pledgor request gets routed to repository.
Pledgee puts pledge closure confirmation request online or through RP of pledgee.
Pledgee request gets routed to repository.
Repository removes the pledge from eNWR and updates the account of pledgor, pledgee and WSP.
Intimation message to RPs, pledgor, pledgee and WSP by repository about pledge closure of eNWR.

23. Pledge Invocation
Pledgee puts pledge invocation request online or through RP of pledgee.
Pledgee request gets routed to repository.
Repository removes the pledge from eNWR and transfers ownership of eNWR from pledgor to pledgee. Repository updates account of RPs, pledgor ,pledgee and WSP.
Intimation message to RPs, pledgor, pledgee and WSP by repository about pledge invocation of eNWR.

24. e-Auction
The Repository shall appoint a third party agency to e-Auction the commodities.
Request from the pledgee to the repository for liquidating ’Pledged’ marked eNWR of a client who has defaulted in making payment of dues.
Pledgee would be required to intimate the new repository Account where the eNWR would need to be credited on completion of e-Auction.
Repository would facilitate linkages with the e-Auction platform for implementation of invocation of pledge.
On completion of e-auction, repository transfers ownership of eNWR from pledgee to the new eNWR holder. Repository updates account of RPs, pledgee, client and WSP.

25. Inter Repository transactions and Reconciliations
Inter Repository Transaction is required in case clients involved in a transaction are having account on different repositories.
Inter Repository Transaction may take place for On Market Transfer, Off Market Transfer, Pledge Creation, Pledge Closure, Pledge Invocation, e-auction processes.
Repositories have agreed to complete the Inter Repository reconciliation on each working day.
Upon successful completion of inter repository reconciliation process, WSP will be allowed to perform reconciliation of electronic balances with physical stocks.

26. Reconciliation of electronic balances with physical stocks
WSP/Warehouseman is required to download a report on daily basis or as per the frequency prescribed by the Repository from its login.
Report shall contain details of Electronic Warehouse Receipts maintained by the warehouseman electronically as on date at warehouse level, other attributes such as status of the Electronic Warehouse Receipts & beneficiary owners and will also be provided to the WSP/Warehouseman.
WSP/Warehouseman is required to validate the electronic records with the physical stock details and update the reconciliation status in the Repository system.
In case of any mismatch observed at the time of reconciliation, WSP/Warehouseman needs to raise it to the Authority and the Repository Participant for such rectifications and further actions as may be required for reconciling the same.

27. $ 60 bn + Untapped potential $ 4 bn Lack of awareness among farmers
Lack of institutional framework
Risk averse behavior of banks
Lack of infrastructure, grading and collateral management system
$ 4 bn
Farmer’s reluctance to store commodity in warehouse
Lack of an e-NWR platform 
Salient feature of eNWR
An eNWR will be available only in electronic form.
The single source of truth for the eNWR will be the repository.
Confidentiality, Integrity & Availability of the eNWR information will be provided by the repository.
An eNWR has a time validity after which it expires.
An eNWR can be split into multiple eNWRs by also splitting the lot associated with the original deposit.
An eNWR can be auctioned under certain conditions such as pledged loan not repaid, on expiry and delivery is not taken and on damage or spoilage of the commodity in the warehouse.
All eNWRs can be traded through off-market or exchanges.
Source: IFC