Multi Commodity Exchange of India Ltd. - MCX

Multi Commodity Exchange of India Ltd.Contract Specification of Arecanut JAHAJI MVJ garbledSymbolDescriptionJanuary contractFebruary contractMarch contractApril contractMay contractJune contractJuly contractAugust contractSeptember contractOctober contractNovember contractARECAJHAJIARECAJHAJIMMMYYContract available for tradingAfter approval of the Commission to 15 th January of the contractyear1 st August of the earlier year to 15 th February of the contract year1 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 contract year1 st December of the earlier year to 15 th June of the contract year1 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 yearDecember contract1 st June to 15 th December of the contract yearTradingTrading periodMondays 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 value Rs. Per quintalMaximum order size50 MTTick size (minimum price Re.1movement)Daily price limits 4%Price quoteEx-warehouse Mangalore – exclusive of all taxesInitial margin 5%Special MarginIn case of additional volatility, a special margin of such other

percentage, as deemed fit, will be imposed immediately on bothbuy and sale side in respect of all outstanding position, which willremain in force for next 2 days, after which the special margin willbe relaxed.Maximum allowable openpositionFor individual clients: 2000 MTFor a member collectively for all clients: 10,000 MT or 20% of theopen market position whichever is higher.DeliveryDelivery unit 5 tons with tolerance limit of 2%Delivery center(s)Delivery period marginQuality Specification andDelivery StandardsExchange approved warehouse at Mangalore25% of the open position during the delivery periodIndian 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, BadiakaBroken :- 1%Arecanut pieces: - nilHusk remaining in Arecanut: - nilColor: - Natural (no added coloring matter)Inside cutting: - plain, with no powder inside, with least moistureNo Whole:Dagi (Inside Color if yellow and Green): Maximum 8 %No live/dead infestationPackagingDelivery LogicShould be in 65 kg new jute bag.The tare weight deduction per bag for net weight calculation shallbe 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.CompulsoryDelivery & Settlement procedure of ArecanutDelivery logicCompulsory delivery. Any seller having open position on the

expiry date fails to deliver then penalty shall be imposed asper the penal provisions mentioned below.Tender PeriodDelivery periodTender notice / Delivery Pay-inLast five working days and 1 st working day after expiry of thecontract.Three working days after expiry of the contractThe seller may issue tender notice during tender days andWarehouse Receipt and Quality Certificate issued by QualityCertifying agency by tender period.Any outstanding positions will be marked for delivery at theexpiry of the contract.Mode of communicationTender Period MarginDelivery Period MarginExemption from DeliveryPeriod MarginDelivery allocation- Date- RateDelivery pay-inDelivery pay-outPay-in of fundsPay-out of fundsPenal provisionFax or courier3% incremental margin for last 5 days on all outstandingpositions.25% on marked quantityDelivery Period Margin is exempted if goods tendered ondesignated tender days of the contract month with all thedocumentary evidence.All open positions after closing hours on expiry date.On contract expiry dateAt DDR (Due date rate)1 st working day after expiry of the contract.E+3 working days by 11.00 a.m. (E - Expiry date).E+2 working days by 11.00 a.m.E+3 working days by 11.00 a.m.In case the buyer opts for second sampling the funds pay-out willbe done only after completion of sampling procedure but notlater than 3 working days after the delivery pay-out.I – Seller having open position on expiry of the contract, has tocompulsorily deliver.If the seller fails to deliver, then the open position will be closedout at higher of the following two rates1) Due Date Rate (DDR) of the contract or2) Spot market price, as disseminated by the Exchange, onthe date of the pay in default/refusal by the seller to givedelivery.Accordingly,1) If DDR is lower than the spot market price as mentionedabove- the difference between the two will be debited tothe seller, and2) A penalty of 5% will be imposed for delivery default.II - In case a buyer refuses to take delivery or fails to honour hisfund obligations then the open position will be closed out atlower of the following two rates

1) Due Date Rate (DDR) of the contract or2) Spot market price, as disseminated by the Exchange, onthe date of the pay in default/refusal by the buyer to takedelivery.Accordingly,1) If DDR is higher than the spot market price as mentionedabove- the difference between the two will be debited tothe buyer, and2) A penalty of 5% will be imposed for delivery allocated tohim.Out of the penalties and differences received 90% will be passedon to the counter party and 10% will be appropriated by theExchange.Taxes, Duties, Cess and LeviesClose out of open positionsDue Date RateOdd lot TreatmentAdjustment of TransportationCostWarehouse, fumigation,insurance and transportationChargesBuyer’s option for lifting ofDeliveryDelivery CenterDelivery OrderEx-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, reflectingthe Sales Tax or VAT paid by him. In case of inter-statemovement, buyer has to submit requisite forms or pay CST asapplicable. Post lifting delivery charges are borne by the 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 shall beeffected 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 way oftaking the simple average of last 3 day’s spot price. For obtainingthe prices of the spot market, the Exchange will take the pricesfrom a panel of market participants associated and take averageprice.Delivery will be effected only on delivery lot basis. In case of anyodd lot the delivery will not be marked and the same will beclosed out at the DDR and penalty to such buyer / seller will belevied a minimum penalty @5% of DDR. 90% of the penaltycollected shall be passed on to the counter party while 10% willbe appropriated by the Exchange.Not applicable-Borne by the seller upto commodity pay-out date-Borne by the buyer after commodity pay-out dateBuyer 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 giving

details 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 delivery centerand one location in such center.Delivery GradesEvidence of Stock inpossessionEndorsement of Delivery OrderSampling 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 specifications fromthe Exchange designated certifier. Delivery order once submittedcannot be withdrawn or cancelled or changed unless so agreedby MCX in writing. Members tendering the delivery order shallclearly specify the grade and shall be in conformity with thesurveyor’s certificate accompanied with the delivery documentand cannot be changed subsequently.The members tendering delivery will have the option of deliveringsuch grades of goods as permitted by the Exchange under thecontract specifications. The buyer will not have any option toselect a particular grade and the delivery offered by the sellerand allocated by the Exchange shall be binding on him.At the time of issuing the delivery order, the member must proveto the Exchange that he holds stocks of the quantity and qualityspecified in the delivery order at the declared delivery center.This should be substantiated by way of producing warehousereceipt.The buyer member can endorse delivery order to a client or anythird party with full disclosure given to MCX. Responsibility forcontractual liability would be with the original assignee.In case the buyer does not agree to the Surveyor's report as tothe quality of the commodity, he shall desire for second samplingand intimate the Exchange in writing within 48 hours of the payoutdate.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 becomesnecessaryIf the first sample collected by the buyer and analyzed by thesurveyor appointed by him, conforms to the specifications, thenthe goods tendered for delivery shall be accepted and nosubsequent claims from the buyer regarding quantum of rebateor any other indemnification shall be admissible nor sellers shallbe obliged to pass any sealed samples to the buyer if requestedsubsequently. The sampling methods to be adopted for analysiswill be decided by the Exchange.