BSE, which will launch agri-commodities trading from October this year, has signed an agreement with New Delhi-based warehouse service provider Sohan Lal Commodity Management (SLCM) for storage and assaying services.

Under the agreement signed on Wednesday, BSE would designate some of SLCM’s warehouses as its storage/delivery centre. SLCM currently manages around 2,800 warehouses with a total capacity of 650 million tonnes across the country.

Besides, SLCM will offer rating expertise to grade commodities traded through BSE and make arrangements for the display of commodity balances and price information, said a joint statement by BSE and SLCM.

“The rating system will be recognised for borrowing from the banks and other lending institutions, act as a yardstick for trading and delivery on the commodity exchange,” it said.

Apart from its warehousing facilities, SLCM will also provide it proprietary scientific storage and monitoring service, Agri Reach, at various designated centres of BSE.

This arrangement will help BSE prepare for the launch of commodity derivatives transactions in its bourses, the statement said.

BSE plans to operate as commodity exchange for facilitating online commodity derivative market in India and, therefore, this agreement with SLCM holds significant importance for availing warehouse management services for clearing and settlement of trades executed on our commodity derivative platform, said Sameer Patil, head of business development at BSE.

“The oldest stock exchange in the country is launching commodities derivative trading platform which will support BSE’s offering to traders and give a wider platform to SLCM,” said the statement quotingSLCM CEO Sandeep Sabharwal.