Annexure 1

Contract Specifications of Mentha Oil

Symbol MENTHAOIL
Description MENTHAOILMMMYY
Contract Listing Contracts are available as per the Contract Launch Calendar.
Contract Start Day 1st day of contract launch month. If 1st day is a holiday then the
following working day.
Last Trading Day Last calendar day of the contract expiry month. If last calendar
day is a holiday then the preceding working day.
Trading
Trading Period Mondays through Fridays
Trading Session Monday to Friday: 10.00 a.m. to 5.00 p.m.

Trading Unit 360 kg (2 drums)

Quotation/ Base 1 kg
Value
Price Quote Ex – Chandausi, District Moradabad, Uttar Pradesh (Inclusive
of Mandi Tax, but exclusive of all taxes, purchase tax/ sales
tax/ VAT, if applicable and levies)
Maximum Order 18000 kg (100 drums)
Size
Tick Size (Minimum 10 paise
Price Movement)
Daily Price Limits DPL shall have two slabs - Initial and Enhanced Slab. Once the
initial slab limit of 3% is reached in any contract, then after a
period of 15 minutes, this limit shall be increased further by
enhanced slab of 1%, only in that contract. The trading shall be
permitted during the 15 minutes period within the initial slab
limit. After the DPL is enhanced, trades shall be permitted
throughout the day within the enhanced total DPL of 4%.
Initial Margin Minimum 4% or based on SPAN whichever is higher
Extreme Loss 1%
Margin
Additional and/ or In case of additional volatility, an additional margin (on both
Special Margin buy & sell side) and/ or special margin (on either buy or sell
side) at such percentage, as deemed fit, will be imposed in
respect of all outstanding positions.
Maximum Allowable For individual clients: 500 MT
Open Position For a member collectively for all clients: 5000 MT or 15%
of the market wide open position, whichever is higher.

Near Month Limits

For individual clients: 125 MT
For a member collectively for all clients: 1250 MT or 15%
of the market wide open position, whichever is higher
Delivery
Delivery Unit 360 kg/ 2 drums (with a tolerance limit of 1% per drum) and
direct multiples thereof, though he will get the value only for the
actually quantity delivered by him.
Delivery Period 25%
Margin
Delivery Centre(s) At Exchange designated warehouse at Chandausi
Additional Delivery At exchange designated warehouse at Barabanki at a discount
Centre (s) of Rs. 2/- per kg.
Quality Natural Crude Mentha Oil (Arvensis) confirming to the following
Specifications quality specifications:

 Appearance: Liquid
 Odour: Strong minty with Herbal
 Colour: Light/ pale Yellow
 Solubility: Soluble (1:4 to 6 volume in 70% alcohol)
 Liquid Mentha Oil having L- Menthol 68% as per GLC test
– packed column (Assay by GLC)
- Above 68%: Premium of 1:1
- Between 63% – 68%: Discount 1: 1
- Below 63% Rejected

 Terpene
- Basis 7.5%
- Between 7.5% - 9%: Discount 1:1
- Above 9%: Rejected

 Menthol Isomers: 6% (maximum)

 Menthyl Acetate: 6.5% (maximum up to 6%
without discount, 6% to 6.5 % with 1:1 discount)
 Water and solid sediments: 0.65% (maximum)
 Total Menthol contents (TMC): 70% - 79%
 Optical Rotation: -33o to –38o
 Refractive Index: 1.42 – 1.48
(at 25o C)
 Fats and Oils: Negative
 Menthofuran: Negative
 pH: It should be neutral
 Congealing point: 21 to 23 degree C
 Identification: Confirm to BP / USP
 Specific gravity: 0.80 to 0.91
(at 25oC)
 High boilers : Nil
 GC Temperature
- Detector temperature: 240o
- Injector temperature: 240o
- Oven temperature : Starting 80o
- Temperature rise : 4o per minute

 It should be free from any admixture such as edible oil,

petroleum, mineral oil, sediments, etc.

 In order to check adulteration, water test, paper test and

alkali test will also be conducted, which should confirm to be
negative.
Packing Mentha oil for delivery would be accepted in brand new
galvanized iron container with minimum drum weight of 21 kg
containing 180 kg of Mentha oil of specified quality. The cost of
container, as fixed by the Exchange, will be payable by the
buyer.
Due Date Rate The Due Date Rate (DDR) shall be arrived at by taking the
simple average of the last three trading days polled spot prices,
viz., E0, E-1, & E-2 (E-Expiry date). In the event of the spot prices
for any one of E-1 and E-2 not being available the spot price of
E-3 would be used for arriving at the average. In case spot
prices are not available for both E-1 and E-2, then the average
of E-0 and E-3 (two days) would be taken. If all the three days’
prices, viz., E-1, E-2 and E-3 are not available, then only one
day’s price, viz., E-0 will be taken as the DDR.

For the purpose of computation of spot prices the following

weightages is assigned to the respective mandis:
Mandis Weightage
Sambhal 25%
Barabanki 30% (2% will be added to
Barabanki price)
Chandausi 15%
Rampur 15%
Badayun 7.5%
Bareli 7.5%
Delivery Logic Compulsory

Contract Launch Calendar of Mentha Oil

Contract Launch Contract Expiry

Months Months
October 2015 January 2016

November 2015 February 2016

December 2015 March 2016

January 2016 April 2016

January 2016 May 2016

January 2016 June 2016

February 2016 July 2016

April 2016 August 2016

June 2016 September 2016

July 2016 October 2016

August 2016 November 2016

September 2016 December 2016

 Annexure 2

Delivery and Settlement Procedure of Mentha Oil Contract

Delivery Logic Compulsory delivery

Tender Period Last five working days of the contract expiry and 1st working day
after expiry of the contract.
* Delivery period Three working days after expiry of the contract
(including
delivery pay-out
of commodities)
Tender notice / The seller shall submit the Original Warehouse Receipt/s issued
Delivery Pay-in by Exchange approved Warehouse (duly endorsed & signed by
the depositor and the member), and Valid Quality Certificate/s
issued by Exchange approved surveyor/ assayer (quality
certifying agency).
All outstanding long and short positions shall be marked for
delivery at the expiry of the contract.
Mode of MCX eXchange
communication
Tender Period 3% incremental margin for last 5 working days’ of the contract on
Margin all outstanding positions in addition to the Initial, Special and/ or
any other additional margin, if any.
Delivery Period Delivery Period Margin of 25% will be levied on the long and
Margin short positions marked for delivery.
Tender and Sellers are exempted from payment of margin, if goods are
Delivery Period tendered during tender days of the contract month with all the
Margin documentary evidences.
Exemption
Delivery
Allocation
- Date On Expiry date of the contract
- Rate At delivery order rate (DDR i.e. final settlement price)
Delivery Pay-in of E+1 working days by 5.00 p.m. (E – Expiry date)
Commodities
Pay-in of Funds E+2 working days by 11.00 a.m.
Delivery Pay-out E+3 working days after 11.00 a.m.
of Commodities
Pay-out of Funds E+3 working days –after 11.00 a.m.
Penal Provision I – Seller Default
for default of
Delivery & A. If a seller member, having open position on expiry of the
Settlement contract, fails to deliver the goods, as specified in the
contract specifications, along with valid quality
certificate/s, on or before the scheduled delivery pay-in
time, it shall be deemed as seller’s failure to fulfill the
delivery obligation.
B. Penalty at rate of 3% of DDR and difference between the
DDR and average of the three highest last spot prices of
the five succeeding days after expiry of the contract (E+1
to E+5 days), if the average price so determined is higher
than DDR shall be imposed on the defaulting seller.
C. Out of the penalty of 3%, the buyer (counter party to
such defaulting seller) will get 1% and the full difference
 amount, if any, determined as “difference between DDR
and average of three highest last spot prices….”
(referred in B above). while 1.75% will go to SGF and
the balance 0.25% to the Exchange

A seller who has got requisite stocks in the Exchange

designated warehouses is not allowed to default and any such
delivery default by seller would be viewed seriously and the
Exchange shall take suitable penal / disciplinary action against
such members over and above the prescribed penalty as
enumerated above.

II – Buyer Default

A. The buyer shall have to compulsorily take delivery of the

goods allocated on expiry of the contract and, the
amount due from the buyer for delivery obligation shall
be sent for debit as funds pay-in on scheduled pay-in
day.
B. Failure to discharge the pay-in amount on scheduled
pay-in day will be treated as pay-in default of the buyer,
which shall lead to deactivation of the trading terminal/s
of the buyer member.
C. The Exchange, as deems appropriate, shall have the
right to sell/dispose the goods through online auction (or
through any other appropriate mechanism as and when
required) on account of such defaulting buyer in one or
more tranches, and the buyer shall be liable for all
outstanding dues and/or financial losses arising out of
auction/disposal, including any costs, charges, close out
charges, penalties etc. as provided in relevant Rules,
Bye-laws and Business Rules of the Exchange from time
to time and also other disciplinary measures

Taxes, Duties, Ex – Chandausi, District Moradabad, Uttar Pradesh (Inclusive of

Cess and Levies Mandi Tax, but exclusive of all taxes, purchase tax/ sales tax/
VAT, if applicable and levies)
The seller/buyer tendering/taking delivery should have Mandi
registration and CST / UP state VAT Registration No. In case he
doesn’t have VAT Registration No. in the state of UP, he should
appoint a Commission Agent located in UP for the purpose of
tax compliance.
Post lifting delivery, all charges-shall be borne by the buyer.
Due Date Rate The Due Date Rate (DDR) shall be arrived at by taking the
simple average of the last three trading days polled spot prices,
viz., E0, E-1, & E-2 (E-Expiry date). In the event of the spot prices
for any one of E-1 and E-2 not being available the spot price of E-
3 would be used for arriving at the average. In case spot prices
are not available for both E-1 and E-2, then the average of E-0
and E-3 (two days) would be taken. If all the three days’ prices,
viz., E-1, E-2 and E-3 are not available, then only one day’s price,
viz., E-0 will be taken as the DDR.
For the purpose of computation of spot prices the following
weight ages is assigned to the respective mandis:
 Mandis Weightage
Sambhal 25%
Barabanki 30% (2% will be added to
Barabanki price)
Chandausi 15%
Rampur 15%
Badayun 7.5%
Bareli 7.5%
Odd lot treatment Not Applicable
Adjustment of Not Applicable
transportation
cost
Warehouse, -Borne by the seller upto commodity pay-out date
fumigation, -Borne by the Buyer after commodity pay-out date
insurance and
transportation
charges

Standard 50 grams per barrel per month

Deduction
Buyer’s option Buyer will not have any option about choosing the place of
for lifting of delivery and will have to accept the delivery as per allocation
Delivery made by the Exchange.
Delivery Center Delivery can be effected at Exchange designated warehouse at
Chandausi
Additional At exchange designated warehouse at Barabanki at a discount
of Rs. 2/- per kg.
Delivery Center
Drum Charges Rs.2050.00/- per drum (exclusive of VAT charges)
Delivery of Each delivery shall be in multiples of delivery lots and shall be
Goods designated for only one delivery center and one location in such
center.

Delivery will be accompanied with duly discharged Warehouse

Receipt/s, Valid Quality Certificate/s (valid up to minimum 1
month after the expiry of the contract), as per contract
specifications from the Exchange approved quality certifying
agency/s.

Delivery once submitted cannot be withdrawn or cancelled or

changed, unless so agreed by the Exchange. Goods tendered
under delivery shall be in conformity with the contract
specifications.
Delivery grades The members tendering delivery will have the option of
delivering such grades of Menthol Oil as permitted by the
Exchange under the contract specifications. The buyer will not
have any option to select a particular grade and the delivery
offered by the seller and allocated by the Exchange shall be
binding on him.
Physical Members / Clients holding stocks in the warehouse are entitled
inspection of to undertake physical inspection of said stocks. Request for
stock in such physical inspection would have to be submitted to the
possession Exchange and the Exchange after verification of such requests
 shall forward the same to the concerned warehouse for allowing
such inspection.
Sampling The method of sampling, the system of drawing samples, quality
Method, Quality analysis, testing at Warehouse and certification by surveyor /
Analysis, Testing assayer, shall be prescribed by the Exchange from time to time
& Certification
For goods deposited in the Exchange designated warehouse,
results of testing for sampling by the warehouse/assayer, the
designated surveyor / assayer certificate, shall be final and
binding on all the parties concerned

In case, the Member/ client who seek to lift the goods from the
warehouse, do not agree to the assayers report as to the quality
of the commodity, Member/ client shall request the Exchange
for resampling and retesting, without lifting the goods from the
warehouse. Such goods should not have crossed the final
expiry date (FED) as mentioned on the quality certificate.

Exchange shall select assayer from the empanelled assayers as

specified by the Exchange from time to time.

Member/ client in such case shall make a request for retesting

to the Exchange (In the prescribed form) which in-turn shall be
forwarded to the concerned warehouse. The Member / client
shall indicate the preferable date and time of visit to the
warehouse for retesting of the stock along with the prescribed
form.

The following documents shall be required to be submitted to

the warehouse official(s) on the date of the warehouse visit.
 Original Retesting Request Form
 Original Warehouse receipt duly endorsed by the
Member/ client.
 Original Authorization letter in favor of representative
along with copy of ID proof.
 Original Delivery Order (Goods withdrawal request) duly
signed and stamped by the Member/ client.

The assayer, in consultation with the Exchange and / or

warehouse, shall complete the process of retesting and submit
a retesting report within a reasonable period to the Exchange.
The process of retesting includes drawing & collection of
samples (as per sampling process) by the assayer from
warehouse, retesting and submission of report.

In order to ensure that tests are exactly comparable and that the
results are consistent, the assayer shall determine the particular
analytical test by applying the test methods as agreed or
prescribed / communicated by Exchange from time to time.

The designated assayers shall submit the report to the

Exchange and the Exchange shall forward the same to the
parties within 2 working days from the date of receipt of the
report. The retesting report is final and binding on the parties.
 If the said retesting report conforms to the quality specification
(including outbound quality tolerance limits, if applicable), then
the goods shall be accepted by the said Member/ client and no
subsequent claims regarding quantum of discount/ rebate or
any other indemnification/ damages shall be admissible and the
said Member/ client shall lift the said goods and Member/ client
shall not be allowed to deliver the same goods on Exchange
platform.

If the results are not found in accordance to the quality

specifications as prescribed by the Exchange from time to time
(after considering the outbound tolerance limits, if applicable),
the Member/ client shall, within 2 working days, submit claim, to
the Exchange, in writing by giving details such as lot numbers,
quantity and the parameters under which inconsistencies are
observed. The decision of the Exchange shall be final and
binding on the parties concerned.

The Member / client, whoever request for the resampling,

retesting and certification shall bear all professional Fees of
surveyor / assayer, including incidental costs, weight shortage
and expenses related to sampling, testing certification, etc.
Legal obligation Every member delivering and receiving warehouse receipt by
way of delivery shall provide appropriate tax forms, wherever
required as per law and as custom, and neither of the parties
shall unreasonably refuse to do so.
Extension of The Exchange may extend the Delivery Period due to either
delivery period force majeure or any other reason, as it thinks fit in the interest
of the market.
Applicability of The general provisions of Byelaws, Rules and Business Rules
Business Rules of the Exchange and decisions taken by Regulator of
Commodity Exchanges, the Board of Directors and Executive
Committee of the Exchange in respect of matters specified in
this document shall form an integral part of this contract. The
Exchange or Regulator of Commodity Exchanges, as the case
may be, may further prescribe additional measures relating to
delivery procedures, warehousing, quality certification,
margining, and risk management from time to time.

Members and market participants who enter into buy and sell
transactions need to be aware of all the factors that go into the
mechanism of trading and clearing, as well as all provisions of
the Exchange's Bye Laws, Rules, Business Rules, circulars,
directives, notifications of the Exchange as well as of the
Regulators, Governments and other authorities.

It is the sole obligation and responsibility of the Members and

market participants to ensure that apart from the approved
quality standards stipulated by the Exchange, the commodity
deposited / traded / delivered through the Approved
warehouses/Vaults of Exchange is in due compliance with the
applicable regulations laid down by relevant authorities like
Food Safety Standard Authority of India, AGMARK, BIS etc. as
also other State/Central laws and authorities issuing such
regulations in this behalf from time to time, including but not
limited to compliance of provisions and rates relating to Sales
Tax, Value Added Tax, APMC Tax, Mandi Tax, LBT, Octroi,
Excise duty, stamp duty, etc. as applicable from time to time on
the underlying commodity of any contract offered for deposit /
trading / delivery and the Exchange shall not be responsible or
liable on account of any non-compliance thereof.

The Exchange is not responsible and shall not be held liable or

accountable or responsible for value of the goods/stock of the
commodities stored/lying in Exchange designated warehouse/s
and which is fully/partially confiscated / seized by any local or
statutory or any other authority for any reason whatsoever or
for any deterioration in quality of the goods stored due to
above reason or which have passed the Final Expiry date and
continue to remain in the Exchange accredited warehouse. The
decision of the Exchange shall be final and binding to all
Members and their constituents in this regard. (The
interpretation or clarification given by the Exchange on any
terms of this contract shall be final and binding on the members
and others.)