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Article: Warehouse Development Bill to make receipts negotiable.
- Article from:
- Economic Times (New Delhi, India)
- Article date:
- May 1, 2005
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Byline: Tina Edwin
May 1--NEW DELHI -- In an effort to improve credit flow to the agriculture sector, the Centre is set to bring a legislative and regulatory framework that would make warehouse receipts a negotiable instrument, reports Tina Edwin in New Delhi.
A draft Warehouse Development and Regulation Bill that proposes to make the warehouse receipts legally acceptable in the banking system and the commodities market, and for providing for its regulation, is already under circulation to the various ministries.
At present, banks are wary of lending against warehouse receipts due to associated risks like fraud receipt, credit risk with the ...