Multi Commodity Exchange of India Ltd. - MCX

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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.
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Multi Commodity Exchange of India Ltd. - MCX

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