The main objectives of WDRA & its Repository is to implement the electronic Negotiable Warehouse Receipt System in the country, improve the fiduciary trust of the depositors and the banks, increase liquidity in rural areas, encourage scientific warehousing of goods, lower the cost of financing, promote shorter and efficient supply chains, enhance reward for grading and quality and ensure better price risk management. To provide impetus for increasing the use of NWRs, WDRA is focusing on developing commodity settlement mechanism and dispute resolution mechanism; registration of warehouses in order to achieve the objectives laid out in the WDR Act.
Repository Participants are agents of the Repository, and are expected to provide services as per Repository guidelines.
ROLE & RESPONSIBILITY
As per WDRA guidelines, a Repository may appoint one or more entities as Repository Participants who shall be persons referred to in clause 16(4) of WDRA Guidelines on Repositories and creation and management of Electronic Warehouse Receipts, to be its agent for all or any of the following purposes –
- To identify through documentary and/ or physical verification, on behalf of the Repository, the identity and address of the depositor in whose favor a warehouseman intends to issue an electronic Warehouse Receipt.
- To facilitate the opening, management and closing of accounts of users on the Repository;
- To facilitate the issue, modification, transfer, pledge and e-auction of electronic Warehouse Receipts.
- Other incidental and ancillary purposes as may be specified by the Repository from time to time.
As per the WDRA guidelines 16(4) of WDRA Guidelines on Repositories and Creation and Management of electronic Negotiable Warehouse Receipts and Repository Business Rule 9(1), the following entities are eligible for becoming Repository Participant:
- A Bank, or a financial institution licensed under the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934;
- Any intermediary registered with the Securities and Exchange Board of India, PFRDA or IRDA;
- A warehouseman is eligible for becoming a Repository Participant if it meets the requirements as specified by the Repository and as approved by the Authority from time to time. Provided that in addition to the conditions as aforesaid, a Warehouseman shall adhere to following conditions:
- Warehouseman shall segregate its operations as the Repository Participant from its warehouse operations completely that shall include both at the technological and operational level.
- Warehouseman may facilitate opening of Client account for farmers if and only if Repository Participant conducts Biometric or OTP based verification of AADHAR.
- Warehouseman shall have the necessary infrastructure like web-camera etc. to enable in- person verification by the Repository Participant’s authorized personnel.
- Any other class of persons permitted to act as a Repository Participant by the Authority from time to time.
Further, the type/constitution of entities fulfilling the above mentioned criteria which may be admitted as Repository Participants are as mentioned below:
- Application form
- Repository Participant Agreement on stamp paper of Rs 500 or Franking (as attached)
- Duly attested Company’s/Partnership firm/LLP PAN card
- Directors/Partners/Designated director details viz. name, qualification, contact details, experience
- Duly attested Company’s GST certificate
- Letter from bank certifying a/c no and date from which operational
- PAN card Copy of Directors/Promoter Shareholders/Partners
- Net worth certificate
- Proof of work experience – designated Directors/Partners as may be applicable
- Board Resolution/Partner’s Resolution along with List of authorized signatories verified by bank
- Annual report for current FY along with balance sheet and Notes to accounts
- Articles of Association (AoA) and Memorandum of Association (MoA)/ Partnership deed
- Details of Shareholders as per format attached
- Fit and Proper Undertaking