Repository Participant Ecosystem
Repository Participants (RP) are agents of the Repository, and are expected to provide services as per Repository guidelines.
Repository Participants are classified in two categories
1. Repository Participants – Account Maintenance
2. Pledgee
Repository Participants – Account Maintenance (AM)
As per WDRA guidelines, NeRL can appoint as its Repository Participants – Account Maintenance any of the following type of entities:
- Scheduled Commercial Bank as listed under Schedule 2 (as amended) of the Reserve Bank of India Act, 1934, or 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;
- A warehouseman meeting the requirements that the Repository may specify, after such requirements for warehouseman have been approved by the Authority;
- Any entities regulated by PFRDA, IRDA, or any other class of persons permitted to act as a Repository Participant by the Authority from time to time.
Key Objectives for RP – AM
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.
Pledgee
Entities permitted as per the Byelaws and business rules of NeRL can become Pledgee. Pledging is a process through which client can offer the commodity as collateral to Pledgee for availing finance or margin benefit.
Key Objectives for Banks and NBFCs
As per WDRA guidelines, NeRL can appoint as its Repository Participants – Account Maintenance any of the following type of entities:
- Scheduled Commercial Bank as listed under Schedule 2 (as amended) of the Reserve Bank of India Act, 1934, or 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;
- A warehouseman meeting the requirements that the Repository may specify, after such requirements for warehouseman have been approved by the Authority; and
- Any entities regulated by PFRDA, IRDA, or any other class of persons permitted to act as a Repository Participant by the Authority from time to time.
As per WDRA guidelines, NeRL can appoint as its Repository Participants – Pledgee any of the following type of entities:
- Scheduled Commercial Bank as listed under Schedule 2 (as amended) of the Reserve Bank of India Act, 1934, or financial institution licensed under the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934;
- Such other financial intermediaries which are permitted by RBI for the purpose of carrying on the business of lending and borrowing;
- Any custodian as defined by SEBI
Pledgee/Financial Institutions would be enrolled as Repository Participant carrying out pledging related activities and/ or providing account maintenance activities for clients as per their business requirement. In case any pledgee/Financial Institution desires to carry out activities related to pledge only, they would be registered as Repository Participant – Pledgee.