Contract Specification of Arecanut JAHAJI MVJ garbled - MCX

Contract Specification of Arecanut JAHAJI MVJ garbledSymbolDescriptionJanuary contractFebruary contractMarch contractApril contractMay contractJune contractJuly contractAugust contractSeptember contractOctober contractNovember contractDecember contractARECAJHAJIARECAJHAJIMMMYYContract available for tradingAfter approval of the Commission to 15 th January of thecontract year1 st August of the earlier year to 15 th February of the contractyear1 st September of the earlier year to 15 th March of the contractyear1 st October of the earlier year to 15 th April of the contract year1 st November of the earlier year to 15 th May of the contractyear1 st December of the earlier year to 15 th June of the contractyear1 st January to 15 th July of the contract year1 st February to 14 th August of the contract year1 st March to 15 th September of the contract year1 st April to 15 th October of the contract year1 st May to 15 th November of the contract year1 st June to 15 th December of the contract yearTrading periodTradingMondays through SaturdayTrading session Monday to Friday 10.00 a.m. to 5.00 p.m.Saturday10.00 a.m. to 2.00 p.m.Trading unit1 TonQuotation/base valueMaximum order sizeTick size (minimum pricemovement)Daily price limitsRs. Per quintal50 MTRe.1Daily price fluctuation limit is (+/-) 2%. If the trade hits theprescribed daily price limit there will be a cooling off period of15 minutes. Trade will be allowed during this cooling off periodwithin the price band. Thereafter the price band would beraised by another (+/-) 2% and trade will be resumed. If theprice hits the revised price band (4%) again during the day,trade will only be allowed within the revised price band. No

Price quoteInitial margin 5%Special Margintrade / order shall be permitted during the day beyond therevised limit of (+/-) 4%.Ex-warehouse Mangalore – exclusive of all taxesIn case of additional volatility, a special margin of such otherpercentage, as deemed fit, will be imposed immediately onboth buy and sale side in respect of all outstanding position,which will remain in force for next 2 days, after which thespecial margin will be relaxed.Maximum allowable openpositionFor individual clients: 2000 MTFor a member collectively for all clients: 10000 MT or 15% ofthe market-wide open position, whichever is higher.Near Month LimitsFor individual clients: 400 MTFor a member collectively for all clients: 2000 MT or 15% ofthe market-wide open position, whichever is higherDeliveryDelivery unit 5 tons with tolerance limit of 2%Delivery center(s)Exchange approved warehouse at MangaloreDelivery period margin25% of the open position during the delivery periodQuality Specification andDelivery StandardsIndian Arecanut Jahaji garbled of current year with followingcomposition, size and produced at places indicated below.Variety Composition SizeMoti 25% (min) 26-28mmVachras (Sevardhan) 45% 24-26mmJam 30% (max) 21.75-24mmPlace of production: Puthur, Vithla, Mangalore, Beltongari,Sullia, kundapur, Kasargod, Bayar, Nilchal, BadiakaPackagingDelivery LogicBroken :- 1%Arecanut pieces: - nilHusk remaining in Arecanut: - nilColor: - Natural (no added coloring matter)Inside cutting: - plain, with no powder inside, with leastmoistureNo Whole:Dagi (Inside Color if yellow and Green): Maximum 8 %No live/dead infestationShould be in 65 kg new jute bag.The tare weight deduction per bag for net weight calculationshall be 1.2 kg for 65 kg bags,gross weight.The cost of the bags, as determined by the exchange will bepayable separately by the buyer to the seller.Compulsory

If the spot market price is higher than the as mentionedabove- the difference between the two will be debited tothe seller.II - In case a buyer refuses to take delivery or fails to honourhis fund obligations then the open position will be closed out atlower of the following two rates1) Due Date Rate (DDR) of the contract or2) Spot market price, as disseminated by the Exchange,on the date of the pay in default/refusal by the buyer totake delivery.Accordingly,If the spot market price is lower than the DDR asmentioned above- the difference between the two will bedebited to the buyer.Additionally, Penalty of 2.5% and replacement cost of 4% will berecovered from the defaulting buyer / seller.Taxes, Duties, Cess andLeviesClose out of open positionsDue Date RateOdd lot TreatmentAdjustment ofTransportation CostWarehouse, fumigation,insurance and transportationOut of the penalty, 2% will be credited to IPF and 0.5% will becredited to the counter party, while out of the replacement costand differences recovered 90% will be passed on to thecounter party and 10% will be retained by the Exchange.Ex-warehouse Mangalore – exclusive of all taxesThe buyer will have to pay Sales Tax/ VAT, if applicable, andother charges/levies as applicable.The Seller will issue invoice in the name of the buyer,reflecting the Sales Tax or VAT paid by him. In case of interstatemovement, buyer has to submit requisite forms or payCST as applicable. Post lifting delivery charges are borne bythe buyer.All outstanding positions not settled by way of delivery on theexpiry of contract shall be closed out at Due Date Rate andrespective pay-in and pay-out of funds of such close out shallbe effected on 1 st day after the last trading day by 11.00 a.m.DDR is calculated on the last day of contract maturity by wayof taking the simple average of last 3 day’s spot price. Forobtaining the prices of the spot market, the Exchange will takethe prices from a panel of market participants associated andtake average price.Delivery will be effected only on delivery lot basis. In case ofany odd lot the delivery will not be marked and the same willbe closed out at the DDR and penalty to such buyer / seller willbe levied a minimum penalty @5% of DDR. 90% of the penaltycollected shall be passed on to the counter party while 10%will be appropriated by the Exchange.Not applicable-Borne by the seller upto commodity pay-out date-Borne by the buyer after commodity pay-out date

ChargesBuyer’s option for lifting ofDeliveryDelivery CenterDelivery OrderBuyer will not have any option about choosing the place ofdelivery and will have to accept the delivery as per allocationmade by the Exchange.Exchange approved warehouse at MangaloreGood delivery order will be submitted in specified format givingdetails of Members / Registered Non-Members who shallperform delivery.Each delivery order issued shall be in multiples of minimumdelivery lots and shall be designated for only one deliverycenter and one location in such center.Delivery GradesEvidence of Stock inpossessionEndorsement of DeliveryOrderSampling and Analysis at thetime of DeliverySampling ProcedureIt will be accompanied with Warehouse Receipt, Invoice andGood Delivery Quality Certificate valid at least for 10 days afterthe expiry of the contract, as per the contract specificationsfrom the Exchange designated certifier. Delivery order oncesubmitted cannot be withdrawn or cancelled or changedunless so agreed by the Exchange in writing. Memberstendering the delivery order shall clearly specify the grade andshall be in conformity with the surveyor’s certificateaccompanied with the delivery document and cannot bechanged subsequently.The members tendering delivery will have the option ofdelivering such grades of goods as permitted by the Exchangeunder the contract specifications. The buyer will not have anyoption to select a particular grade and the delivery offered bythe seller and allocated by the Exchange shall be binding onhim.At the time of issuing the delivery order, the member mustprove to the Exchange that he holds stocks of the quantity andquality specified in the delivery order at the declared deliverycenter. This should be substantiated by way of producingwarehouse receipt.The buyer member can endorse delivery order to a client orany third party with full disclosure given to the Exchange.Responsibility for contractual liability would be with the originalassignee.In case the buyer does not agree to the Surveyor's report as tothe quality of the commodity, he shall desire for secondsampling and intimate the Exchange in writing within 48 hoursof the pay-out date.The system of drawing of samples tendered for delivery will beas prescribed in the Bureau of Indian Standards procedure.Three Samples shall be drawn as under:• First Sample - for the buyer• Second Sample - for the seller• Third Sample - for final reference, if it becomes

necessaryIf the first sample collected by the buyer and analyzed by thesurveyor appointed by him, conforms to the specifications,then the goods tendered for delivery shall be accepted and nosubsequent claims from the buyer regarding quantum ofrebate or any other indemnification shall be admissible norsellers shall be obliged to pass any sealed samples to thebuyer if requested subsequently. The sampling methods to beadopted for analysis will be decided by the Exchange.Failure of First SampleIf the first sample as examined by the buyer's surveyor fails toconform to the quality standards specified, the buyer shallintimate the seller within 72 hours of collection of sealedsample along with a copy of the analyst's report. The sellershall immediately send the second sealed sample to anapproved laboratory, which is also agreed by the buyer. Theresult of the same shall be binding on both the parties. In theevent the buyer and seller do not mutually reach agreementwith the results of the second sample test, then the Exchangeshall send the third sealed sample to any one of the approvedlaboratories / surveyor, as decided by the Exchange.Final Surveyor’s ReportThe analyst's report of the approved and agreed independentlaboratory shall be forwarded by the Exchange to the partiesimmediately on receipt of the same. In such case, the finalpayment to the seller will be made on the basis of test reportreceived by the Exchange pursuant to the third test. TheExchange will also direct the party, in whose favour the resultis declared to collect the cost of tests and detention chargesfrom the other party. In case the commodity stands rejectedthen it will tantamount to failure on the part of the seller to givedelivery, which shall be closed out as per the due date ratetreating the same as shortage.Obligations of theIndependent AnalystLegal ObligationExtension of Delivery PeriodIn order to ensure that tests are exactly comparable and thatthe results are consistent, the independent analyst shalldetermine the particular analytical test by applying themethods specified in relevant IS. The analyst shall be requiredto append a certificate to that effect to the analysis reportissued by him.The member will provide appropriate tax forms whereverrequired as per law and as customary and neither of theparties will unreasonably refuse to do so.As per the Exchange decision due to a force majeure orotherwise.

Applicability of BusinessRulesThe general provisions of Byelaws, rules and Business Rulesof the Exchange and decisions taken by Forward MarketsCommission, Board of Directors and Executive Committee ofthe Exchange in respect of matters specified above will formand integral part of this contract. The Exchange or FMC as thecase may be further prescribe additional measures relating todelivery procedures, warehousing, quality certification,margining, risk management from time to time. (Theinterpretation or clarification given by the Exchange on anyterms of this contract shall be final and binding on themembers and others.)Note :1. Kindly refer circular no. MCX/366/2005 dated October 27, 2005 and MCX/367/2005dated October 27, 2005 or any subsequent circulars, regarding Standard deductions andDelivery centers respectively, if applicable2. Proprietary account of a member is treated as client account. Please refer circular no.MCX/T&S/052/2008 dated February 5, 2008.