Modification in requirement of inspection of accredited warehouses by Clearing Corporations
Summary
SEBI modifies the inspection frequency requirements for accredited warehouses in the commodity derivatives segment to ease compliance burdens. Clearing corporations are now required to conduct independent agency inspections only once per calendar year if there is nil stock for six months, or exempted entirely if stock remains nil throughout the year. These changes aim to rationalize periodicity based on actual warehouse deposits while maintaining in-house inspection obligations.
Text
Para 12.16 of the Master Circular for Commodity Derivatives Segment dated August 04, 2023 deals with requirements pertaining to inspection / audit of accredited warehouses by Clearing Corporations.
Inspection shall be carried out at least twice in a calendar year with a gap of not more than six months; however, Clearing Corporations are exempted from independent agency inspection if there are NIL stocks during the preceding six months.
For accredited storage facilities with 'Nil' stock continuously during the preceding six months, the number of inspections by an independent agency may be limited to 'once in a calendar year'.
The requirement of inspection by an independent agency may be done away with if there is 'Nil' stock in an accredited storage facility continuously during the calendar year.
Requirement of periodic (in-house) inspection by clearing corporation as stated in Para 12.16.1 of Master Circular shall continue to apply to ensure readiness of accredited warehouse/s to accept new deposits.
Inspections shall have a gap of not more than six months; limited to once a year if nil stock for six months; exempted if nil stock for the whole year. If no independent inspection occurred previously, Para 12.16.1 compliance must be ensured before allowing new deposits.
The circular shall be effective from calendar year 2024.
This Circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992.
Source: SecMarx — Modification in requirement of inspection of accredited warehouses by Clearing Corporations. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.