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BSE & SLCM join hands for agri-commodity trade

SLCM shall provide warehousing, assaying services, crop management services to BSE for storage of various foodgrains, pulses and other agricultural commodities at various locations in India

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BSE, formerly known as Bombay Stock Exchange, has entered into an agreement with Sohan Lal Commodity Management (SLCM) for supporting its launch of agri-commodities trading. Under the agreement SLCM shall provide warehousing, assaying services, crop management services to BSE for the purpose of storage of various foodgrains, pulses and other agricultural commodities at various locations in India.
 
Under the agreement, BSE will recognise some of SLCM’s warehouses as BSE storage/delivery centres. SLCM will also carry out rating exercise at the warehouses as per its rating system and make arrangements for the display of commodity balances and price information, as necessary. The rating system will be recognised for borrowing from the banks and other lending institutions and it will act as a yardstick for the purposes of trading and delivery on commodity exchange.
 
Apart from providing its warehousing and storage facilities, SLCM will also provide AGRI REACH services at various locations as designated storage/delivery centres of BSE. This arrangement with SLCM is part of BSE’s preparation to launch commodity derivatives transactions in its bourses.

Highlighting about the agreement, Sameer Patil, Head Business Development, BSE said, “BSE intents to operate as commodity exchange for facilitating online commodity derivative market in India and therefore this MoU with SLCM holds significant importance for availing warehouse management services for clearing and settlement of trades executed on our commodity derivative platform.”

“BSE and SLCM fully acknowledge and appreciate our respective strengths, resources, experience and expertise and therefore feel it expedient to join hands for mutual benefits in pursuit of common goals with the underlying objective of developing commodity derivatives market, Patil added.
 
Commenting on this agreement with BSE, SLCM Group CEO Sandeep Sabharwal said, “It is a matter of pride that SLCM is part of this momentous occasion where the oldest stock exchange in the country is launching commodities derivative trading platform. This tie-up is synergistic for both the organisations as it will not only support BSE in its offering for its traders but it also gives a wider platform to SLCM for enhancing its business. Efficient warehousing services along with a smooth delivery of commodities are essential for success of goods and commodities trading.”

“Our system including our platform such as AGRI REACH is fully equipped to support this initiative of BSE. At SLCM, we are committed to offer world class technology enabled storage solutions and well-defined protection services for the entire range of agri-commodities across the country. We are confident that with our best practices and technology driven processes, BSE’s commodity derivative platform will achieve a resounding success,” Sabharwal added.
 
He further said, “Our association with BSE establishes our leadership and validates our capabilities in commodity warehousing. We look forward to fruitful association with BSE and hope to optimise resource utilisation, and ensure value delivery to all the members of BSE.”

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