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TMI BlogGuidelines for identification and selection of location as a delivery centre(s) for commodity derivatives contractX X X X Extracts X X X X X X X X Extracts X X X X ..... physically delivered commodity derivatives contract. The choice of delivery centre(s) is of vital importance to help the buyers/sellers in taking informed decisions about taking or giving deliveries. In the absence of a well-defined laid down criteria for identification and selection of a location as a delivery centre, it is observed that each stock exchange has adopted different criteria for different commodities as per their internal policy decision. 2. Based on the market feedback and in the interest of the stakeholders there is a need to bring in uniformity in the guidelines to be followed by the stock exchanges for identification and selection of a location as a delivery centre. Based on the recommendations of Commodity Derivatives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and sizeable number of warehouses in and around the location capable of handling the deliveries on expiry of the contract and capable of getting registration with Warehousing Development and Regulatory Authority (WDRA) wherever applicable, before the launch of the contracts. 3.4.2. There should be adequate transport links (road or rail connectivity), presence of assaying and testing facilities, processing plants, etc., for effecting smooth deliveries. 3.5. Trade Feedback: Feedback from all the stake holders including Farmers/ Farmer Producers Organization (FPOs)/ Traders/ Value Chain Participants (VCPs)/ Corporates/ Micro, Small Medium Enterprises (MSMEs),Processors, Exporters etc., should be obtained and duly considered befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 above shall form part of the information to be submitted to PAC for their consideration in terms of the reference provided in the aforesaid Circular. All the above stated information shall also be submitted by the stock exchanges to SEBI while submitting application for contract approval or renewal. 7. The provisions of this Circular shall be effective from August 01, 2020. 8. This Circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 , to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 9. The Stock Exchanges and Clearing Corporations are advised to: 9.1. to make necessary ame ..... X X X X Extracts X X X X X X X X Extracts X X X X
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