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    Question

    Consider the following statement about Electronic Negotiable Warehouse Receipt (e-NWR):

    I. An E-NWR is available only in electronic form.

    II. E-NWR can be transferred fully only.

    III. All E-NWRS can be traded through off-market or on-market in Commodity Exchanges platforms.

    Which of the above statement is/are not correct?

    A Only I Correct Answer Incorrect Answer
    B Only II Correct Answer Incorrect Answer
    C Only III Correct Answer Incorrect Answer
    D Only I and II Correct Answer Incorrect Answer
    E Only II and III Correct Answer Incorrect Answer

    Solution

    An e-NWR is available only in electronic form. The single source of information for the e-NWR is the repository system where e-NWR is issued by registered warehouses. Confidentiality, integrity and availability of the e-NWR information is provided by the Repository system. An e-NWR has time validity. All e-NWRS can be traded through off-market or on-market in Commodity Exchanges platforms. An e-NWR can be auctioned under certain conditions such as loan not repaid, on expiry and delivery not taken, and on likely damage or spoilage of the commodity in the warehouse. e-NWR can be transferred fully or in part.

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