Contract Specifications of Sesame Seed - MCX

Contract Specifications of Sesame SeedSymbolSESAMSEEDDescriptionSESAMSEEDMMMYYContracts available for tradingJanuary contract16 th October of the earlier year to 15 th January of thecontract yearFebruary contract16 th November of the earlier year to 15 th February of thecontract yearMarch contract16 th December of the earlier year to 15 th March of thecontract yearApril contract16 th January to 15 th April of the contract yearMay contract16 th February to 15 th May of the contract yearJune contract16 th March to 15 th June of the contract yearJuly contract16 th April to 15 th July of the contract yearAugust contract16 th May to 14 th August of the contract yearSeptember contract16 th June to 15 th September of the contract yearOctober contract16 th July to 15 th October of the contract yearNovember contract16 th August to 15 th November of the contract yearDecember contract16 th September to 15 th December of the contract yearTradingTrading periodMondays through SaturdaysTrading sessionMonday to Friday: 10.00 am to 5.00 pmSaturday: 10.00 am to 2.00 pmTrading unit5 MTQuotation/Base Value100 kgMaximum order size100 MTTick size (minimum price Re. 1movement)Daily price limits 2%Initial margin 5%Price QuoteEx Rajkot exclusive of sales tax

Special MarginDelivery period marginMaximum Allowable OpenPositionDelivery unitDelivery center(s)Quality SpecificationWhitish seedRain damage allowanceDark coloured seedRain damage allowanceImpurities (foreign matters),percent by weight, maximum• To be accepted• Rejectable• Moisture content, percentby mass, maximum• RejectableOil Content (on clean seed basis),percent by mass,• To be Accepted• To be Accepted• To be RejectableF.F.A• Allowed upto• To be RejectedOther conditions related todeliveryIn case of additional volatility, a special margin at suchpercentage, as deemed fit, will be imposed immediatelyon both buy and sale side in respect of all outstandingposition, which will remain in force for next 2 days, afterwhich the special margin will be relaxed.25% of the open position during the delivery periodFor individual clients: 3000 MTFor a member collectively for all clients: 9000 MT or 15% ofthe market-wide open position, whichever is higher.Near Month LimitsFor individual clients: 600 MTFor a member collectively for all clients: 1800 MT or 15%of the market-wide open position, whichever is higherDelivery10 MT (with tolerance limit of 250 kg) which means that ifthe seller delivers any quantity between 9.75 MT to 10.25MT, it will be construed as adequate discharge of hisdelivery obligation of 10 MT, though he will get the valueonly for actually quantity delivered by him.Exchange designated warehouse at Rajkot and UnjhaWhite Sesame Seed Natural of Indian OriginBasis 99 %0.5% with 1:1 discountBasis 1%0.5% with 1:1 discount1%Between 1 - 2% with allowance 1:1Above 2%Basis 6%Above 6%Minimum 49%Between 48 - 49% with allowance 1:1Between 47 - 48% with allowance 1:2Below 47%2%Above 2%1. Truck loading charges will be paid by seller.2. Delivery shall be construed on Net basis, where Netbasis means the Gross weight of the delivery minusweight of containers, baggage or packing material.3. It shall be free from Live Weevils.

Delivery and Settlement procedure of Sesame SeedDelivery LogicTender day(Seller’s / Buyer’s Intentions)Tender periodDelivery periodTender notice / Delivery Pay-inMode of communicationDissemination of Information ontendered delivery on Trader WorkStationDelivery Period MarginExemption from Delivery PeriodMarginDelivery Allocation- Date- RateSeller’s Option10 th of the contract expiry month by 6:00 pm11 th to 15 th of the contract expiry month16 to 18 of the contract expiry monthThe seller will issue tender notice on tender day. SubmitWarehouse Receipt and Quality Certificate issued byQuality Certifying Agency during tender period.Fax / CourierOn next working day after the tender day25% on the marked quantityDelivery Period Margin is exempted if goods tenderedon designated tender days of the contract month with allthe documentary proof.On the Expiry dateAt DDRDelivery Pay-inDuring Tender period by 6.00 p.m.Delivery Pay-outE+3 working days by 11.00 a.m. (E means Expiry date)Pay-in of FundsE+2 working days by 11.00 a.m.Pay-out of FundsE+3 working days by 11.00 a.m.Penal Provision 1) Any seller who has not submitted intention todeliver during tender day and having open positionon the expiry date, a penalty of 1% of the DDRshall be imposed on him out of which 90% will bepassed on to the counter party, while 10% will beretained by the Exchange towards administrativeexpenses.Delivery Default2) If Seller fails to deliver after giving the tendernotice, a penalty of 2.5% of the DDR shall beimposed on him.3) In case a buyer refuses to take delivery or fails tohonour his fund obligations then the open positionwill be closed out at lower of the following tworates:‣ Due Date Rate (DDR) of the contract or‣ The Spot market price, as disseminated by theExchange, on the date of the pay-indefault/refusal by the buyer to take delivery.Accordingly,‣ If the spot market price is lower than the DDRas mentioned above - the difference between

the two will be debited to the buyer.‣ A penalty of 2.5% will be imposed for deliveryallocated to him.Additionally, a replacement cost of 4% will berecovered from the defaulting buyer / seller.Out of the penalty (as mentioned in 2 and 3 above), 2%will be credited to IPF and 0.5% will be credited to thecounter party. While, out of the replacement cost anddifferences recovered, 90% will be passed on to thecounterparty and 10% will be retained by the Exchangeas administrative expenses.Taxes, Duties, Cess and LeviesClose out of open positionsDue Date Rate (DDR)Odd lot TreatmentMembers should not square off their positions onceintention of delivery is given to the Exchange. In case amember squares his open position (in full or in part)after giving the intentions, the Exchange may initiatedisciplinary action as it may deem fit or may chargeadditional penalty.The buyer has to pay sales tax / VAT as applicable attime of taking delivery.All outstanding positions on expiry of contract shall beclosed out at DDR and respective pay-in and pay-out offunds of such close out shall be effected on 1 st day afterthe last trading day by 11.00 a.m.Exchange shall take spot prices from a panel of differententities from spot market and shall compute the dailyaverage price. DDR is calculated on the last day of thecontract maturity by way of taking the simple average oflast 3 days spot price so computed.Delivery will be effected only on delivery lot basis. Incase there is any mismatch in the position of seller andbuyer then delivery will not be matched and accordinglythe position will be closed out at DDR and penalty tosuch buyer / seller will be levied a minimum penalty@5% of DDR. 90% of the penalty collected shall bepassed on to the counter party while 10% will beappropriated by the Exchange.Adjustment of Transportation Cost For seller tendering delivery order from Unjha,transportation charges from Unjha to Rajkot as decidedby Exchange before contract expiry would be deductedfrom the seller only if the buyer is from Rajkot MarketYard.Warehouse, fumigation, insuranceand transportation Charges-Borne by the seller upto commodity pay-out date-Borne by the Buyer after commodity pay-out dateBuyer’s option for lifting of DeliveryDelivery CenterBuyer will not have any option about choosing the placeof delivery and will have to accept the delivery as perallocation made by the Exchange.Deliveries can be effected from Exchange designatedwarehouse which may be CWC or private warehouse at

Delivery OrderDelivery GradesEvidence of Stock in possessionEndorsement of Delivery OrderSampling and Analysis at the time ofDeliverySampling ProcedureRajkot and Unjha.Good delivery order will be submitted in specified formatgiving details of Members / Registered Non-Memberswho shall perform delivery.Each delivery order issued shall be in multiples ofminimum delivery lots and shall be designated for onlyone delivery center and one location in such center.It will be accompanied with Warehouse Receipt, Invoiceand Good Delivery Quality Certificate valid at least for 1month after the expiry of the contract, as per contractspecifications from Exchange designated certifier,Delivery order once submitted cannot be withdrawn orcancelled or changed unless so agreed by theExchagne in writing. Members tendering the deliveryorder shall clearly specify the grade and shall be inconformity with the surveyor’s certificate accompaniedwith the delivery document and cannot be changedsubsequently.The members tendering delivery will have the option ofdelivering such grades of goods as permitted by theExchange under the contract specifications. The Buyerwill not have any option to select a particular grade andthe delivery offered by the seller and allocated by theExchange shall be binding on him.At the time of issuing the delivery order, the membermust prove to the Exchange that he holds stocks of thequantity and quality specified in the delivery order at thedeclared delivery center. This should be substantiatedby way of producing warehouse receipt.The Buyer member can endorse delivery order to aclient or any third party with full disclosure given to theExchagne. Responsibility for contractual liability wouldbe with the original buyer member.In case the buyer does not agree to the Surveyor'sreport as to the quality of the commodity, he shall desirefor second sampling and intimate the Exchange inwriting within 48 hours of the pay-out date.The system of drawing of samples tendered for deliverywill be as prescribed in the Bureau of Indian Standardsprocedure. Three Samples shall be drawn as under:• First Sample – For the buyer• Second Sample – For the seller• Third Sample – For final reference, if necessaryIf the first sample collected by the Buyer and analyzedby the surveyor appointed by him, conforms to thespecifications, then the goods tendered for delivery shallbe accepted and no subsequent claims from the Buyerregarding quantum of rebate or any otherindemnification shall be admissible nor sellers shall beobliged to pass any sealed samples to the Buyer ifrequested subsequently. The sampling methods to beadopted for analysis will be decided by the Exchange.

Failing of First SampleFinal Surveyor’s ReportObligations of the IndependentAnalystLegal ObligationExtension of Delivery PeriodApplicability of Byelaws, Rules,Business Rules of the Exchange.If the first sample as examined by the buyer's surveyorfails to conform to the quality standards specified, theBuyer shall intimate the seller within 72 hours ofcollection of sealed sample along with a copy of theanalyst's report. The seller shall immediately send thesecond sealed sample to an approved laboratory, whichis also agreed by the buyer. The result of the same shallbe binding on both the parties. In the event the Buyerand Seller do not mutually reach agreement with theresults of the second sample test, then the Exchagneshall send the third sealed sample to any one of theapproved laboratories / surveyor, as decided by theExchange.The analyst's report of the approved and agreedindependent laboratory shall be forwarded by theExchagne to the parties immediately on receipt of thesame. In such case, the final payment to the seller willbe made on the basis of test report received by theExchange pursuant to the third test. The Exchange willalso direct the party, in whose favour the result isdeclared to collect the cost of tests and detentioncharges from the other party. In case the commoditystands rejected then it will tantamount to failure on thepart of the seller to give delivery, which shall be closedout as per the Due Date Rate treating the same asshortage.In order to ensure that tests are exactly comparable andthat the results are consistent, the independent analystshall determine the particular analytical test by applyingthe methods specified in relevant IS. The analyst shallbe required to append a certificate to that effect to theanalysis report issued 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.The general provisions of Byelaws, rules and BusinessRules of the Exchange and decisions taken by ForwardMarkets Commission, Board of Directors and ExecutiveCommittee of the Exchange in respect of mattersspecified above will form and integral part of thiscontract. The Exchange or FMC as the case may befurther prescribe additional measures relating to deliveryprocedures, warehousing, quality certification,margining, risk management from time to time. (Theinterpretation or clarification given by the Exchange onany terms of this contract shall be final and binding onthe members and others.)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 applicable.2. Proprietary account of a member is treated as client account. Please refer circular no.MCX/T&S/052/2008 dated February 5, 2008.