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PREFACE TO THE PHYSICAL DELIVERY GUIDE NCDEX is the only commodity exchange in the country promoted by national level institutions. This unique parentage enables it to offer a bouquet of benefits, which are currently in short supply in the commodity markets. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nationwide reach, technology and risk management skills. NCDEX is a nation -level, technology driven de-mutualised on-line commodity exchange with an independent Board of Directors and professional management - both not having any vested interest in commodity markets. It is committed to provide a world-class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency. We are extremely happy to present to our Members and constituents the third edition of handbook on physical delivery guide. It is the Endeavour of the Exchange to incorporate the necessary changes in the existing process of physical delivery to smoothen the process and make it more transparent. Members are requested to go through this handbook and educate themselves the process followed by the Exchange in physical deliveries. In case any further clarifications are required members are free to approach the customer service group. This book includes the latest developments and the existing processes to be followed by the depositor and the buyer while dealing with physical commodities through the Exchange delivery process with the accredited warehouses and other service providers of National Commodity & Derivatives Exchan ge Limited. We express our gratitude to all those who responded to our call for feedback offering valuable suggestions. Care has been taken to incorporate most of them thereby making the book more valuable.

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TABLE OF CONTENTS 1 2 Access to individual information on internet (NCOMCONNECT)........................................5 Demat account opening........................................................................................................5 2.1 Type of Demat accounts ...............................................................................................6 2.2 Process of opening a Demat account. .........................................................................6 3 Process of commodity deposit and credit in the Demat account ......................................8 4 Process of revalidation of ICIN .......................................................................................... 11 4.1 Concept of validity date and need for revalidation .................................................. 11 4.2 Rules and procedure for revalidation........................................................................ 11 4.3 Failure in revalidation ................................................................................................ 11 5 Process of Remat of warehouse receipts.......................................................................... 13 6 Charges............................................................................................................................... 14 7 Process of delivery at Exchange for Sellers Option, Compulsory Delivery, Intention Matching & Staggered Delivery................................................................................................. 16 7.1 Submission of delivery request................................................................................. 16 7.2 Rejection of delivery request: ................................................................................... 16 7.3 Delivery matching ...................................................................................................... 17 7.4 Query of delivery requests already submitted......................................................... 19 7.5 Reading del very information files ............................................................................ 19 i 7.6 Settlement calendar................................................................................................... 19 8 Shortages............................................................................................................................ 20 9 Process of delivery at the Depository ............................................................................... 21 9.1 Quality and delivery lots............................................................................................ 21 9.2 Delivery process......................................................................................................... 21 9.3 Pay-in process at NSDL ............................................................................................. 22 9.4 Pay-in process at CDSL .............................................................................................. 22 10 Early Pay -in Process....................................................................................................... 23 10.1 Time of early pay-in ................................................................................................... 23 10.2 A)The applicable rules of the new Scheme are explained below:.......................... 23 10.3 Merits of early pay ................................................................................................. 24 -in 10.4 Early Pay -in process................................................................................................... 24 11 NCDEX Clearing Front End Softw are ............................................................................ 26 12 Unique Client Code......................................................................................................... 27 13 Sales Tax Settlement Process ....................................................................................... 28 13.1 Sales tax information and its significance................................................................ 28 13.2 For Receiving Clearing Members ............................................................................... 28 13.3 Invoice file on the Extranet....................................................................................... 29 13.4 Failure to submit information on time to Exchange and its implications............... 30 13.5 Sales tax obligations.................................................................................................. 31 13.6 NCDEX transactions are LST ..................................................................................... 31 13.7 Implications of unregistered buyer & seller............................................................. 32 13.8 Payment of Mandi Tax ............................................................................................... 32 13.9 Excise information and its significance..................................................................... 33 o Purchase tax ............................................................................................................... 33 13.10 Customs duty and its significance ............................................................................ 33 13.11 Registration for specific commodities....................................................................... 34 1 4 Customer Service Group.................................................................................................... 35 14.1 Clearing & Settlement Schedule ............................................................................... 35 14.2 Instructions for lodging complaint against Trading and C learing Member of NCDEX 36 1 5 Annexures........................................................................................................................... 37 15.1 Sample Beneficiary Account Opening Form ............................................................. 37 15.2 Sample Member Pool Account Opening Form .......................................................... 43 15.3 Format of Warehouse Acknowledgement................................................................. 49 15.4 Samp le of Commodity Deposit Form........................................................................ 50

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.. 65 Sample form of Early Payin commodity details to be forwarded to NCCL .......7 15.............. 58 Sample Delivery-Out Form..................................11 15................10 15............. 54 Format of Settlement Calendar ............... 69 Reduction of Exposure by the Member through NCFE ...................................................... 67 On the letter head of Member.................13 15.........15................................5 15........................14 15.......9 15............... 56 Sample Account Transfer Form ...................... 64 Sample Sales Tax Invoice .....................................12 15.... 68 Complaint against Trading and Clearing Members of NCDEX ..................................Revalidation Form .........................18 15.................. 60 Format of Letter from CMs for Opening of Early Pay-in A/c at CDSL ................................................................................................................ 52 Sample NCDEX Commodity Deposits .......... 63 Sample Intersettlement Form .............................................................. 53 Sample Physical Delivery Request Form / Remat Request Form...................17 15..........................................................................................................................15 15...................................................8 15....................................................6 15.................................. 70 Page 4 of 73 .......19 Sample Transaction Statement.. 61 (A) An illustration -Sequence of Events in Sales Tax Settlement.. 65 Sampling Request Letter ....16 15.................

Delivery ready re cknor: This function is used by the investor to view delivery details of a commodity. To help the investor choose form a wide option. These requests are automatically sent to the concerned party and subsequent actions are performed by the recipient of these e -ma ils. Commodity is a one point contact which brings all entities like Investor. Warehouse. g . d . Holding reports: This section provides the investor to view his various kinds of holdings. e . Status reports: This section is to the investor to view the status of his application based on the receipt number given by the warehouses.1 Access to individual information on internet (NCOMCONNECT) ‘Ncomconnect’ (https://ncomconnect. Withdrawal reports: This section is useful to the investor to view his/her remat details. For the sake of convenience to the investor he is provided to view his holdings DP wise. Contract specifications of commodities: This section contains contract specifications of the entire commodities available with NCDEX exchange. A delivery description report is generated based on the commodity chosen 2 Demat account opening It is ma ndatory to open an electronic (Demat) account with both the depositories i. Intimate warehouse for deposit of goods: This section provides the investor to give intimation to the warehouse in advance for deposit of commodities. Assayer. It also includes viewing charges commodity wise. Request billing statements & holding statements by e-Mail: This section of the application holds forms where an investor is allowed to request his holdings and billing statements by e -mails. Exchange will be able to monitor the activities taken by various service providers from the date of deposit and till the time the Members get demat credit. Depository Participant and the Exchange who are involved in the Physical Settlement process of Commodities on one common platform. The user is advised to go through this section before he/she a contract with commodities. depository or commodity wise. After registering with NCOMConnect one is allowed to exercise/view the following functionalities: a . Warehouse charges: This section provides the investor to view the various warehouse charges that are applicable. It is mandatory for all individuals/members intending to deliver the commodities in the Exchange accredited warehouse to send their requests through Ncomconnect.e. This enables the Exchange to take corrective action immediately if the demat credit process is held up at any stage. Billing reports: This section will help the investor view his billing at a warehouse. Subsequent sections will describe the process to view all the mentioned reports. i. An investor is allowed to choose a commodity from a drop down box. For a better clarity these repots have been distinguished into warehouse wise. depository wise and commodity wise. j. h . It includes a reports based on the RRN number and a remat summary report. this section provides details of charges levied by different warehouses. Warehouse wise. b . It includes a summary report showing all the bills of an investor. f. c. his expired holdings and a summary of his holdings. The user is required to select a Beneficiary account number and the kind of report he/she intends to receive by e-mail. Request holdings by e-Mail : Here an investor is allowed to request details of his/her holdings via e -mails. It includes applications that have been either pending or rejected by the concerned parties. An entity can avail of this facility after registration which is free of cost. National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) for taking delivery of commodities while trading through NCDEX system Page 5 of 73 . This helps the warehouse to be prepared & results in saving of costly man -hours.

(explained in the subsequent chapters) A Member is required to open both the pool account (CDSL & NSDL) as well as a beneficiary (CDSL & NSDL) account with each of the depositories. • Pool Account • • A Member pool account is a Demat account opened by Trading Members and / or Clearing Members of NCDEX This account is opened to facilitate the pay -in and pay -out process. The list of depository participants (DPs) who have been empanelled by NCDEX and are authorized to open commodity Demat accounts for their participants are available on the website i.: Executing instructions and providing holding & transaction statements on time Confidentiality and comfort level • • Page 6 of 73 .e. Such an account could also be in the name of a Corporate. 2. It is similar to a bank account. The Exchange keeps this list updated from time to The points to be considered while selecting a DP would be : o o o Convenience: i.since t he pay-out may be received at either of the depositories and currently there is no provision for Inter-depository transfers. In case of any difficulties in opening the Demat account or any operational issues participants may contact NCDEX customer service group at 022 -56406609-6615 022 -30616558 or e -mail at askus@ncdex.e.2 Process of opening a Demat on the home page under the heading “Membership”. a partnership firm. The beneficiary account holder or Member who wishes to open a Demat account should do the following: • • Select a Depository Participant (DP) from the list of DPs empanelled by NCDEX where he wishes to open the Demat account. This account is to be used for transacting in commodity balances held by the account holder at Exchange ac credited warehouses. These commodity balances would have been – in a physical process set up – represented through a warehouse receipt. proximity to office/ residence Service standards i.ncdex.e.1 Type of Demat accounts The following type of Demat accounts can be opened: • • Beneficiary account Pool account Beneficiary Account • A beneficiary account is a Demat account in the name of an Individual (single or jointly). 2. a society and a trust. The Demat account is required to hold (at designated depository participants) the commodity balances representing the commodities lying at the Exchange accredited warehouses/vaults. www.

Submit the duly filled form to the DP along with the other requirements such as proof of identity and proof of address Sign the agreement with the DP. The DP will open the client account and inform the client normally within a week’s time. Trust Deed as the case may be and such other enabling documents as may be required by the DP. trusts etc.2 ) . which will generate a CM BP ID for the Me mber and inform the DP.o • Cost: i. They will have to submit the Board Resolution. Bye Laws.e.This form can be obtained from the chosen DP. o o Letter from NCDEX-NCCL regarding Identification Number (CMID) Membership letter given by NCDEX. allocation of Clearing Member • • • • • • The DP will forward all the required documents to the Depository. authorized officials will operate on the account. The holders can give instructions / power of attorney for Demat account operation. Page 7 of 73 . The Demat account can be operated by the holder / owner of the Demat account if it is in single name or by joint holders if it is in joint names. The DP will then activate the account and inform the Member.1 and sample member pool account opening form is shown in Annexure 15. Memorandum and Articles of Association. societies. Members who wish to open a CM Pool Account should submit the following additional documents to the selected DP. This has to be executed on stamp paper according to the stamp value prevailing in the state in which the agreement is being executed. In case of corporates. firms. service and transaction charges levied by the DP Fill up the account opening form (sample beneficiary account opening form is shown in Annexure 15.

Once the assayer gives a report of the quality of the commodities and this conforms to the specifications as given by NCDEX. commodity being deposited. quantity of the commodity. The assayer sends the copy of the report to the client & the concerned warehouses • The client will have to bear all the initial charges such as initial storage charges till the date of Demat credit (being levied by warehouse for a minimum period of 5 days or as given on the Website as indicative warehouse charges).3) . The warehouse will accept the commodities from the client and initiate the process for credit of electronic balance into the client’s account.ncdex. client has to give the CDF form duly filled up and signed to the warehouse. (sample filled in form is shown in annexure 15. Clients should contact the warehouse in advance for availability of space before initiating any process for deposit and send the delivery schedules to the warehouse in which he is intending to deposit through Ncomconnect. the applicable DP charges will have to be paid to the DP. Page 8 of 73 .3 Process of commodity deposit and credit in the Demat account • • Deliveries on the Exchange platform are possible only in the electronic on the home page under the heading “Clearing Services-à Others”. the client has to fill up the Commodity Deposit Form (CDF). warehouse enters the required details in Ncomconnect and a katchha receipt is generated. details of the Demat account i.4) While filling up the CDF the client has to ensure the following: Fill up all the details in the form i. name.ncdex.e. Their contact details are provided on the Exchange website www. weighing. At the time of deposit. The Exchange keeps this list updated for each commodity from time to time.These charges will be payable directly to the warehouse and after the credit is received in the Demat account.e. The client should also contact the assayer approved by NCDEX fo r assaying the quality of the commodities. the warehouse will issue a confirmation of receipt of commodity to the client (format is shown in Annexure 15. • • • • • • • The process of Demat credit • On receipt of CDF from the client (Duly filled and signed) at the time of deposit. charges etc. sampling. loading/unloading under “Products” section) Quality certification given by Approved Assayer shall be considered final and binding on all the parties. DP ID and Client Id. Once t client deposits the commodities duly certified by the approved assayer at he the warehouse. The list of all accredited warehouses by NCDEX along with their contact details and indicative charges is given on web site www. • The quality of commodities being lodged into the Exchange accredited warehouses has to conform to the specifications as given by NCDEX for the different commodities (for further details please see the product notes on the NCDEX website on the home page under the heading “Clearing Services--à Others”. The client desirous of depositing commodities and holding the warehouse receipts in an electronic form should arrange to move the commodities to a warehouse which has been accredited by NCDEX.

if any ) Validity date Expiry date • • • • • • The ICIN is the Commodity Identification Number by which each commodity along with its specific details is uniquely represented. ICIN description will be Warehouse/Commodity/Grade/Validity Date/ Expiry Date e. hence the confirmation of the correct grade is critical. • • Page 9 of 73 . the client should im mediately contact the warehouse. it confirms the same and pukka warhouse receipt is generated.g NCMSL/Jeera /Jeera111/VD10NV05/ED 05JN06. If there is any discrepancy in the grade allocation as per the credit balance. For the difference in grades of the commodities there are premiums and discounts. The credit will be given to the depositors account on the same day by NSDL/CDSL. Karvy Consultants The following are the important points to note in the Holding/Transaction Statement received from the DP. The client should check with its DP for the credit in its Demat account and also request for a Holding/Transaction Statement which will reflect the balances in the Demat account of the client.e. NSDL/CDSL and Registrar i. if the Demat credit in the account with the DP is not reflected within this time frame.5 ) . The details will be verified at the Registrar and Depository end and on succe ssful verification the credit will be given in the Demat account of the client in the appropriate ICIN. For demat balance associated with both the Depositories (NSDL & CDSL). o o o o o o o Name of account holder ICIN Code Description of the commodity deposited Grade allotted Quantity as weighed in at the warehouse ( less allowance for spillage etc. Subsequently the same is transmitted back to the warehouse for verification of the data entered by the assayer with the hard copy of the report. the Exchange may please be informed immediately for corrective action. (Commodity Identification Number) on the same day and details will be electronically transmitted to the depository participant. • The client has to check the grade allotted from the ICIN description in his holding statement received from Depository and in case of any difficulty he should contact the DP. Kindly contact NCDEX customer service group at 022-56406608 -6615 or e-mail at askus@ncdex.• The katchha receipt number generated will be transmitted to the concerned assayer for their confirmation of acceptance/rejection. If accepted.Normally the gap between the time of deposit of the commodity at the warehouse and the credit in the Demat account is expected to be within 7days.e. assayer enters the grade and validity of the same. The details will be elec tronically transmitted to the depository i.(sample Transaction Statement is shown in Annexure 15. After the warehouse finds the data entered in the warehouse receipt are correct.

A ICIN which has valid FED but validity date is over. Thus ICIN’s validity date and FED date should be beyond the expiry date of the month in which the client intends to deliver. The expiry date will be the period till which the commodity can be revalidated.• The client has to ensure that validity date as specified by the Assayer is after the settlement date in which he intends to deliver this would enable him to deliver the commodity on the Exchange on the settlement date for which he intends to deliver. However it should be noted that the expiry date is just an indicative date and there is no mandatory requirement for the assayer to extend the validity even if it has not reached the expiry date. All commodities when deposited for the first time will have a final expiry date. the same cannot be delivered unless the validity date is extended by doing revalidation. This is the maximum time the commodity can go for revalidations. • • • Client should always check both validity date and final expiry date in the ICIN before delivering the same on the Exchange platform. After this period the commodity needs to be compulsorily taken out of the warehouse. which will be different than validity date. Page 10 of 73 .

handling and other incidental charges for revalidation has to be borne by the client holding the commodity balances. The details will be electronically transmitted to the depository i. particularly agricultural commodities have a shelf life and cannot be indefinitely stored. the beneficiary client is informed by the warehouse and has to take out the commodities from the warehouse.2 • • • 4. the charges for such revalidation vary from commodity to commodity and indicative details are available on th e Exchange website www. Hence no revalidations can happen in pool account. provides a date known as validity date up to which the commodity stored in the warehouse is expected to retain the properties / quality specifications confirmed at the time of deposit at the warehouse. The lien needs to be lifted and only then it can be revalidated. Information on the validity date can be obtained from the Holding statement issued by the Depository participant Rules and procedure for revalidation • • • Assaying can be done only by Exchange designated Assayer Revalidation of a commodity is possible only in the Beneficiary account. The beneficiary holding the commodities under expired ICIN will make a request to the relevant warehouse in the prescribed form . Karvy Consultants Ltd. The beneficiary client makes a withdrawal request in the prescribed form (Physical Delivery Request Form) to the Depository Participant (DP) with whom the Demat account is being held and should follow the process for remat as explained in the subsequent chapters. Time period for updation under normal circumstances will not be exceeding 7 days Failure in revalidation • If the assaying report fails to confirm the quality or the expiry date of the commodity is over. • 4. After giving request for revalidation the Member gets a warehouse receipt number. This number should always be quoted while enquiring the status of revalidation. The concept of validity date has therefore been introduced wherein the NCDEX approved quality testing agency for the respective commodity and warehouse. 2004) The warehouse will acknowledge the receipt of revalidation request and allot a revalidation request number. A detailed note on Ncomconnect is given in Chapter Number 13.ncdex. NSDL/CDSL and Registrar i. He can see the status of his request on Ncomconnect after on the home page under the heading “Clearing Services--à Others”. The credit will be given to the de positors account on the same day in CDSL and the end of the next day by NSDL i.e it takes two working days to get the revalidation credit in NSDL accounts.4 4.e. Revalidation credit can be given only in the Demat account in which the commodity under expired I CIN was held. On successful revalidation the credit will be given in the Demat account of the beneficiary client w ith the new ICIN and the new validity date.This form was provided vide NCDEX Circular No: NCDEX/OPERATIONS –022/2004/186 dated December 10. Revalidation can also not happen of balances on which a lien is created.NCDEX Commodity Deposits .3 • Page 11 of 73 .1 Process of revalidation of ICIN Concept of validity date and need for revalidation • • All commodities. The assaying.6). The warehouse will facilitate testing of the refe rred quantity.Revalidation Form (sample filled-in form is shown in Annexure 15.e.

Page 12 of 73 .• Such commodities in respect of which the approved assayers report fails to confirm the quality specifications of the exchange or the expiry of the co mmodity is over. shall not be considered as valid delivery for trades on the Exchange platform.

5 Process of Remat of warehouse receipts As and when the client wants to take the physical delivery of the commodities. (viii) In CDSL the remat request number generated by the DP is captured on the same day and in NSDL it is captured on the next day. Process for mismatch in Remat request and physically delivered quantity Page 13 of 73 . DP verifies the signature of the client and the qty mentioned in the form with the holdings in the Demat account and keys-in the information to the DP module and generates the Remat Request Number (RRN). (vi) On receiving the above documents the warehouse will verify the authenticity with the authorization in the system.g.1 MT at prevailing spot market price on the date of Remat Request. the warehouse will deliver 2 bags or pay the cash equivalent of 0. Assuming pack size of 50 kg each.1 MT and quantity delivered: 20 MT Balance: 0. he can do so by making a request in prescribed form to the DP with whom he holds his Demat account. b ) Authority letter from the client authorizing the agent to take the physical delivery on his behalf (if the client has appointed an agent to take the delivery). (v) Client or his agent approaches the warehouse along with following documents: a ) Original acknowledgement slip issued by the DP on which RRN number is written. (iii) DP gives the acknowledgement copy of the RRF to the client and sends the delivery instruction electronically to the warehouse through the Depository and Registrar (iv) Client or his agent will have to call the warehouse informing them of the request for delive ry and requesting them to keep the delivery ready. Hence remat request can be processed on the same day in case of CDSL & the next day for NSDL accounts. Quantity deposited is 20. Process for fractional deposits/withdrawal It is possible that the client may have some odd lot quantities in their Demat account at the time of deposits e.1 MT. In case the warehouse refuses to accept the instruction for delivery the beneficiary may contact the NCDEX customer service group for assistance. The steps involved are as under: (i) (ii) Client fills in the RRF and hands it over to the DP. c) Proof of identity of the person taking the delivery establishing his identity. The Physical Delivery Request Form (also known as Remat Request Form or RRF) (sample form is shown in Annexure 15. (vii) If the authentication is successful then they will give the physical delivery. the participants will have to follow the physical delivery (Remat) request process as mentioned above.7) will be issued by the DPs to their clients. For withdrawing the balance fractional quantities from the warehouse.

The party which draws the sample will have to compulsorily take physical delivery within 2 working days from the date on which sample is drawn failing which the warehouse will not be liable to make the delivery of the already identified lot represented under the applicable ICIN. Charges till the time pay-in is completed is to be borne by the depositor (seller) and after the pay-out is completed. weighing. At the time of outbound delivery. instances of occurrence of minor quantum of weevils. fungus and m oulds during storage in spite of the best management process adopted by warehouse keepers cannot be ruled out. 6 Charges • All charges which are incidental to the physical delivery are to be borne by the recipient and paid upfront at the time of delivery. no further claims/ complaints will be entertained by the Exchange on account of quality/ quantity. Authorization letter in favour of the representative taking the delivery 3. Such delivery would be treated as good delivery in terms of settle ment. handling charges. insects. goods if found infested with minor quantum of live weevils. fungus and moulds in outbound deliveries would not be treated as bad delivery. Once goods are moved out of the warehouse. fungus or moulds will be fumigated by the warehouse service providers at their cost and delivery would be given in reasonable time frame to the buyer. the difference will be settled in cash at the warehouse level. All charges and costs payable to the warehouse towards delivery of the commodity including sampling. Proof of Identity of the authorized representative 4.15 The warehouse shall facilitate identification and sampling from one of the identifiable lots representing the ICIN for which the remat request has been submitted by the holder/ authorized representative. Outbound deliveries It should be noted that due to inherent nature of agricultural commodities. insects. In some commodities there is a tolerance limit in quality parameters at the time of taking the goods out of the warehouse as per the contract specifications. the charges have to be borne by the buyer. Sampling Request Letter (annexure I) refer to Annexure 15. Exchange clarifies to the market participants that presence of minor quantum of weevils.In case a Remat request generated is more/less than the actual quantity being delivered. This facility can be exercised only once for each remat request. Sampling before taking physical delivery Members/Clients are allowed sampling of commodity stored in NCDEX accredited warehouses before taking actual physical deliveries on submission of following documents to the warehous :e 1. insects. initial storage charges etc upto Demat credit (levied for the minimum holding period as decided by the Exchange) from the date of receipt into designated warehouse upto the date of pay-in and • Page 14 of 73 . Original Remat Request acknowledgement slip duly signed and stamped by the holder’s Depository Participant (DP) 2.

handling etc after the pay-out shall be borne by the buyer. The charges are payable by cash/ DD. the warehouse facilitates above activities. • Generally. • • • Page 15 of 73 . It may be noted that the warehouse may charge a higher tariff for the goods kept in the warehouse a month after the final expiry is over. these are purely value added services from the warehouse and as may be negotiated by the recipient with the warehouse. Warehouse storage charges after credit is received in the Demat account will be charged to the client by the respective DPs. The Assayer charges for testing and quality certification should be paid to the assayer directly at the delivery location by the client.settlement shall be paid by the seller. The indicative charges and minimum billing period is available on the site under the heading Settlement & Delivery. Exchange does not accept any liability/responsibility towards these activities. All charges and costs associated with delivery and including storage.

7 7. Members are levied a penalty (presently Rs. Members are not allowed to create fresh positions during the last five days before the expiry of the contract except for international referenceable contracts like Brentcrude. The request will be valid only to the extent of the open position for the Member at client level in the respective contract.1000/ -) commodity wise per day and such other levies/charges as may be directed by the Regulator for violating this directive and collected from the Members. Further. Nickel. Delivery marking for all contracts except compulsory delivery contract is completed at least 5 trading days prior to expiry of the contract and the intentions are collected during 3 days which is notified separately every month. up to a maximum of their open position as at the end of trading hours Members are not allowed to squa re off their positions once delivery intentions are submitted. Submission of delivery requests can be done within the stipulated period as mentioned in the following paragraph. Any additional delivery request will be rejected. on the Members violating this stipulation. Similarly. A penalty is levied (presently 5%) of final settlement price on the position squared off. Members are advised. The following details are to be entered: o o o o o Buy/Sell indicator Quantity Client Code Location where delivery is to be given/received Dematerialized /Deposited in warehouse Flag (If the commodities have been deposited in the accredited warehouse and/or credit has been received in the Demat account of the client this flag has to be selected by the member ) • 7. The delivery request can also be rejected in case the warehouse capacity of the commodity is exceeded or for such other reasons that the Exchange may deem fit. Intention Matching & Staggered Delivery Submission of delivery request • • Members who wish to take delivery have to submit delivery requests to the Exchange.2 Rejection of delivery request: The rejection of delivery requests will happen under the following circumstances: • Non availability of open position to the extent of the delivery request. • Page 16 of 73 . not to put through trade that violates this directive. Copper & Aluminium. for all International referenceable commodities marking of intention for delivery is completed at least 3 trading days prior to the expiry of the contracts and the intention is collected during 3 days which is again notified separately.1 Process of delivery at Exchange for Sellers Option. • The delivery request is submitted by the Clearing Member on the Trader workstation by selecting the commodity on the Market Watch Screen and pressing the key Control+ F4. Compulsory Delivery. Sellers having open position as on the last day notified for marking delivery intention are required to give their intention/notice.

• For contracts with compulsory delivery All Sellers & Buyers with open position on expiry of the contract will have to mandatorily give delivery on the Exchange. Delivery information In order to allocate deliveries in the optimum location for clients. In case of mismatches in locations between Sellers’ and Buyers’. • Intention Matching Contracts Page 17 of 73 . the Members will give delivery information for preferred location. the one -time location preference given by the Member in the commodity will be considered while matching. delivery obligation would be created for all valid Sell requests received by the Exchange and allocation would be done to the Buyers with open positions on a random basis whether or not the buy request has been submitted. This information will be submitted in the manner as prescribed by the Exchange. a) Submission of one-time warehouse preference for a member Members will be allowed to submit multiple warehouse preferences for various symbols. Members can change the default location preference any day except the last 5 days before the expiry of the contract. If the Member does not give any delivery request for that expiry. Members can submit specific delivery requests for their clients for other locations than base center by invoking the delivery request window on the trading front-end. This will be applicable for all outstanding long and short client positions in that commodity. while allocating the deliveries.7. b) Default location Members who do not submit the preference of the default location. If the Member does not mark any specific location the d efault preference will be applied for all open positions. the Sellers’ choice of location will be given preference over the Buyers’ while allocating deliveries. Matching Matching of preferred locations submitted by the buyer Members will be done to the maximum possible extent. The same will be sent by the members through an Excel file. preference would be given to those buyers who have submitted buy requests. However. will be marked delivery in the base location specified for the commodity. Such Buyers will be bound to take delivery.3 • Delivery matching Contracts with Seller’s right to deliver Sell requests: A valid sell delivery request would result in delivery on the Exchange for those contracts which have seller’s right to deliver Buy Requests: For contracts with seller’s right to deliver.

shall be bound to settle by taking delivery on T + 1 day from the delivery centre where the seller has delivered same.Out will be on T+1 basis. clearing banks or any of the service providers. Clearing and settlement of contracts will commence with the commencement of Tender Period by compulsory delivery of each open position tendered by the seller on T +1 to the corresponding buyer matched by the process put in place by the Exchange. The settlement of contract would be by a staggered system of 5 Pay -ins and Payouts including the 5 th Pay-in and Pay-out which would be the Final Settlement of the contract. Upon successful matching of requests with respect to Commodity and warehouse location results in delivery on settlement day.On expiry day Exchange matches buy & sell requests. An Illustration for the sequence of Events in Sales Tax Settlement is shown in Annexure 15.12 (B) Page 18 of 73 . pay-in and pay-out would happen on T + 1 day. Upon the expiry of the contract all the outstanding open position should result in compulsory delivery. Process of Sales Tax Settlement Please refer to chapter 12 for the Sales Tax Settlement process. If the tender date is T then. which is other than a Saturday. the corresponding buyer having open position and matched as per process put in place by the Exchange. A penalty of minimum 5 % (of applicable Settlement Price) would be imposed on longs and shorts if they fail to meet their delivery obligation during Tender Period or upon expiry of contract as the case may be. Let us assume ‘Tender Date’ as T Pay -in and Pay. A valid sell delivery request would result in delivery on the Exchange for those commodities which are in staggered delivery contracts. Upon expiry of the contracts all the outstanding open positions should result in compulsory delivery. During the Tender period. • Staggered Delivery Contracts In staggered delivery contracts the marking of intention to deliver the commodity starts from 5 days prior to the expiry of the near month contract and the physical settlement of the commodity will be the day after the intention is marked. Pay -in and Pay-out would be effected on the next working day. If s uch a T + 1 day happens to be a Saturday. a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange. Due date/ Expiry date : 20th day of the delivery month. There would be 5 pay-in & pay-outs starting T +1 the 5 th being the Final Settlement. if any delivery is tendered by seller. If 20th happens to be a holiday. The process followed in case of staggered delivery is explained in the following paragraphs. Tender Period : Tender period would be of 5 working days during trading hours prior to and including the expiry date of the contract. a Sunday or a holiday at the Exchange.

7.4 • Query of delivery requests already submitted The delivery requests can be queried using the Ctrl+F4 key on the NCDEX trader workstation. These activities are broadly classified as Commodities settlement. Reading delivery information files • • • Members who have submitted delivery requests can obtain the status of the requests and the delivery allocation if any with the following files RS03-Request Status Report AL02-Delivery Allocation Report (Please refer Circular No: NCDEX/TRADING004/2003/015 dated December 24. Page 19 of 73 . The list of delivery requests submitted for the current expiry period will be displayed. Supplemental settlement for Premium/discounts as well as Closing outs and Sales Tax settlement cycles.5 7. A sample format of the Settlement Calendar is shown in Annexure 15. 2003 for details) 7.8.6 Settlement calendar The Settlement Calendar is issued by the Exchange to inform Members about the schedule of various activities that are to be carried out for physical settlement of different commodities.

Definition of Close out price: Close out price applicable in the case of short delivery is arrived at using following method: Th e higher of the following. Settlement of short delivery is completed as per Close out rate determined for each commodity at the time of Settlement. is treated as short delivery. Page 20 of 73 .8 Shortages Short Delivery • • Any shortage. (Spot price volatility for this purpose shall be computed in the same way as in the case of futures price volatility in calculating Margins) OR 3% of Close out price as determined in (a) above. Additionally a penalty of 5% of Close out price is levied on the seller giving short delivery. In case of such shortages. Definition of Mark-up percentage: Mark-up percentage shall be linked to two days’ volatility in spot prices as computed on the Settlement Date. which is above acceptable limit. the settlement of short delivered or over delivered portion is completed at the Final Settlement Price plus the locational premium or discount applicable for that centre. whichever is higher. Acceptable limits are different for each commodity and are specified in the relevant contracts e.g. Exchange reserves the right to modify the mark up percentage or/and manner to determine the mark up percentage and also the amount of penalty from time to time. Exchange reserves the right to modify the manner of arranging at Close Out price. along with a markup percentage thereon Final Settlement Price of the commodity declared by the Exchange on the Expiry Date OR Last Spot Price of the commodity disseminated by the Exchange on the trading day preceding the Settle ment Date. for Silver (SLVPURDEL) acceptable limit is 5% whereas for Guar Seed (GARSEDJDR) it is 2%.

On the pay-in day the balances will be delivered to the exchange and on pay -out will be given to the buying brokers pool account.The client should submit the form to the DP and take an acknowledgement from the DP for the same. He cannot deliver two ICINs for one delivery lot. Delivery process • The client who wants to deliver the commodity should transfer the credit balances from his account to the clearing Member pool account before the pay-in (Settlement) date specified by the exchange by filling up the Account Transfer Form(sample form is shown in Annexure 15. : This is made available in the circular issued by the exchange and/ or from your broker.9 9. The pay-in process at NSDL and CDSL along with the differences is explained below. 9. Execution Date: It is the date before the pay -in date on which the instruction will be executed.2 • o o o • • • The DP will enter the instruction in its DP module and on the execution date the balances will be transferred from the client account to the member pool account. Quantity to be delivered: 20 MT Minimum delivery lot: 10 MT The participant will be able to deliver maximum of two grades (ICIN) lots of 10 MT each.1 Process of delivery at the Depository Quality and delivery lots • It is necessary for the market participants to deliver only one grade (i. one ICIN) for each delivery lot in each Depository at the time of pay-in. While filling up the Account Transfer Form the client should take care that all the details as mentioned below have been correctly entered and all the holders have signed the form. e.g. Market Type and Settlement No. o o ICIN: This will be available from your Demat Holding/Transaction statement Quantity: Th is is the quantity mentioned against the commodity in your Demat statement and should be less than or equal to the quantity you have sold and mentioned in the statement. CM BP ID /CM Name: These details will be available from the respective clearing members.e. Page 21 of 73 . • • If the market participant is not able to deliver as per the delivery lots then it would be treated as Short Delivery. Members and their constituents should therefore ensure that the delivery of commodities at the time of pay -in is only in deliverable lots under each ICIN to ensure smooth settlement process. The member also has to ensure t hat it has received all the deliveries from the clients before the pay -in to the Exchange. The procedure of normal and early p ay-in at NSDL/CDSL is mentioned in the subsequent chapters.9 ) This form will be provided by the DP.

3 • Pay-in process at NSDL To effect settlement pay-ins NSDL has adopted Instruction based approach. NCCL based on settlement obligation of a given Clearing Member (CMID). This means that a Clearing Member (CM) needs to specifically instruct his DP to make a delivery request known as “Delivery -out” instruction for a given Market TypeSettlement Number combination before settlement date. • • • Thus. CM needs to communicate settlement date to all his clients so as to ensure that all ICIN balances are moved to his CM Pool A/c before settlement date. The payout process is done on Settlement day. This is similar to issuing a cheque to transfer funds from one bank account to another. Irreversible delivery-out is considered as confirmed pay-in for a given settlement and cannot be reversed be fore settlement date whereas delivery-out can be reversed anytime by a CM before execution date. Delivery -out instruction can be of 2 types and it can be given any time before settlement date. On a scheduled settlement date.13 for the format).In CDSL.4 • Pay-in process at CDSL The pay-in process at CDSL is different from NSDL . in NSDL a delivery -out instruction has to be submitted to the DP whereas in CDSL no such instruction needs to be submitted and only the balances should be lying in the members pool account. Page 22 of 73 . • • 9. (Refer to Annexure 15. will generate a response to CDSL to effect transfers in NCDEX-NCCL Settlement account from which credit will be given to respective buyers’ CM Pool A/c. (sample form is shown in Annexure 15. CM needs to be sure of executing all delivery -out instructions before settlement date so as to complete his obligation fully.10 ) This form will be provided by the DP. If the balances are not available in the CM Pool account at the time of pay-in it will be treated as default. CM need not give a delivery-out instruction to his DP. but he has to ensure that the balances are available in the pool account at the time of pay-in otherwise it would be treated as default. CDSL will provide a balances file to NCDEX clearing house (NCCL) having ICIN wise balances for each Clearing Member Pool Account (CM -Pool A/c).9. they are: Irreversible deliveryout and reversible delivery-out. If the commodity received in any settlement is not shifted to the Beneficiary account and if they need to payin t owards the next settlement then the Member needs to give an intersettlement instruction to the DP for delivery on the Exchange platform.

exposure margins. For eg: For contracts expiring on 20th. i) In case Early pay-in is done by the Member and client information is provided: If there is no delivery position for that client after contract expiry (i. • Early pay-in will not be processed for settlement. from the expiry date of the contract till the pay-in (Settlement) date. vii) Members are required to follow the process specified by the Exchange and adhere to the conditions as specified in section D) below. iv) Margin benefit would be available once the details are submitted and the Early payin information is processed at the end of day on which the information has been submitted. iii) The delivery should be done in a valid ICIN for the settlement. C) Processing of Early pay-in After Contract Expiry. ii) Members are required to have open position in the commodity and are required to submit client details on whose behalf the Early pay-ins are being done. the Members can do the Early pay-in from 16 th of the month. v) MTM settlement will be done for the positions for which Early pay-in has been given before expiry. client short position is squared off or delivery request is not submitted) then the Early pay-in ICIN will be handled in the following way.e. i) • In case Early pay-in is done by the Member and client information is provided: The sell open position for the client shall be suitably reduced so that there is no open position for margin purpose.1 Time of early pay-in • At NCDEX. pre -expiry additional margins and special margins to the extent of Early pay-in made. Early Pay -In (EPI) is accepted once the delivery obligations are finalized and communicated to CMs i.2 A)The applicable rules of the new Scheme are explained below: i) The Early pay -in of Gold and Silver (prior to Expiry) is permitted during the last 5 days prior to contract expiry. vi) In case the open position of the client is squared off after doing an Early pay-in. All other margins.e. This facility is in addition to the existing Early pay-in process followed by members for their delivery obligations.1 0 Early Pay-in Process 10. Page 23 of 73 . ii) In case client information is not provided. will continue to be levied on these positions. the ICINs delivered by the member will be returned to the member along with settlement payouts. • The ICIN will not be accepted as delivery towards settlement obligation and will be returned to the member along with the settlement payout. The position would be exempt from all initial margins. unless otherwise specified by the Exchange. The facility of Early Pay-in of Gold and Silver can be done prior to expiry. 10. B) Processing of Early Pay-in Before Contract Expiry. no margin benefit will be given.

then this shall not be treated as early pay-in. c. The clearing Member who wants to make an early pay-in shall fill in the instruction slip for early pay-in and deliver the same to his DP. D) Process to be followed by Members Members can effect an Early pay-in of Gold and Silver in the following manner: a. The letter is to be faxed to NCCL on Fax number 022. 10. d. the Early pay-in ICIN will not be utilized for the member’s delivery shortages and will be released back to the Member. They need to get in touch with their DP’s for the same. ii) In case of Early pay-in done by the Member and client information is not provided: • The Early pay-in processing shall be as per current practice i.3 Merits of early pay-in • • One of the major benefits of Early Pay-In is that.2659 8 442. Quantity and Early Pay-in Account No. Benefit in margin can be given only after the client code is submitted by members at the end of the day. Settlement Information (Type & Number). all applicable margins collected towards physical settlements are released. the DP shall enter the same in the CDSL DP front end through the early pay-in screen in the settlement menu. Availing the EPI facility through CDSL Members intending to do early payin must open an Early payin account with the Depository. the ICIN will be utilized for Settlement obligation of the Member. As mentioned in the pay-in processes above.. ICIN. The Early p ay-in is done towards a specific settlement. The details required are NCCL ID. Early pay -in from CDSL demat accounts – Members to transfer commodities to Early pay-in account. at NSDL if delivery-out is not issued for a settlement.4 Early Pay-in process The process of early pay-in is different at NSDL and CDSL as mentioned below: • Availing the EPI facility through NSDL – A CM needs to give Irreversible Delivery out instruction using the Delivery-Out Instruction Form for a given Settlement in which the electronic balances is to be settled.16. Members are required to indicate the client for whom the pre delivery is being effected in the format given in (Annexure ‘A’) refer to Annexure 15. It also saves the hassles of not able to deliver on time for a CM. The slip shall mention the early pay -in account of the Member as specified by NCCL. Source Account N o. 10. on receipt of Early Pay-In. CM-ID.e. b. This information can be provided at any time during the day in the last five days prior to expiry. through his DP. Early pay -in from NSDL demat accounts – Members to issue irreversible delivery out (IDO) instructions from their CM pool account.• If there is a shortage for the same Member in commodities pay -in for other delivery positions in Gold and Silver. Based on the instruction slip received by the DP. The Early pay-in is done towards a specific settlement. delivery is not affected automatically and CM runs the risk of default due to non delivery. • • • • • Page 24 of 73 . If a reversible Delivery Out instruction is given.

The early pay -in by the CMs which are not utilized towards settlement obligations would be returned to the CM by way of credit to their respective Clearing Accounts with CDSL along with the payout in respect of that settlement. • • • The procedure for Opening CDSL early pay-in a/c: • • • • Member desirous of making an early pay-in through CDSL is required to provide a letter to NCCL on its letter head in the specified format as given in Annexure 15. • Page 25 of 73 . within 3 working day by NCCL s Early pay-in should be only upto the working day prior to the scheduled settlement pay-in day. there is insufficient balance.11) NCCL arranges to open individual accounts for each CM on the basis of application received The early pay-in account number would be communicated to the Members. Indication of wrong settlement type shall lead to delivery failure. no margin benefit will accrue to the Member. the said transfer will fail. In case any Member makes early pay-in on the scheduled day of pay-in for the settlement. the balances would be transferred from the concerned account to the early pay-in account mentioned in the said instruction.• Immediately on entry of the said instruction. Members can contact their respective DP's for further details. In case.

1 1 NCDEX Clearing Front End Software • With a view to facilitate the submission of data to the Exchange, NCDEX Clearing Front End Software (NCFE) has been developed. NCFE allows Members to carry out the various activities in a convenient and user friendly manner. Members can access NCFE for the following activities. o o o • • Sales tax information - Maintenance of client/agent masters & submission of ST files to the Exchange, Unique Client Code - Maintenance of Client Code details & submission to the Exchange, Daily clearing files – Loading of daily clearing data & viewing the information.

NCFE was released by the Exchange on November 26, 2004. Using NCFE, a Member can interact with Exchange in structured manner. Members can contact NCDEX Customer service group if they have not received the C D-ROM for NCFE software. CD-ROM of NCFE contains detailed procedure for installation and the manual on how to operate NCFE. The disabled members place orders by giving instructions to the Exchange for closing out their positions on their behalf, through fax on the designated fax numbers of the Marketwatch group of the Exchange. To facilitate the members to send order entries, the Exchange has modified the procedures for accepting such order entries. A new feature in the NCFE software allows the members to input the order requests for squaring up their positions. The squaring up order requests is uploaded into the extranet server in the specific folder. On receipt of this file, the Marketwatch group of the Exchange initiates the process for squaring up. The procedure for uploading the requests is given in the Annexure 15.19 . However it should be noted that in such cases, the Exchange would not in any way be liable for any change in market movements or prices or responsible for any losses occurring to the Members and/or their clients.

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1 2 Unique Client Code All members should allot and maintain the Client ID-Nos. along with personal details of clients. They should also fill the ‘Know Your Client’ form stipulated by the Exchange. With a view to strengthen the database of clients of its members a unique identity number (UCC) is allotted to each client. All trading and clearing members should collect and maintain in their back office information for each of their clients. Members can collect copy of identity proof viz PAN Card, Passport, driving license or a copy of Voter ID card for an individual. If a partnership firm/companies is a client then the unique registration number along with copy of PAN Card needs to be collected.

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1 3 Sales Tax Settlement Process 13.1 Sales tax information and its significance • Any person offering a physical delivery on the Exchange platform should have necessary registration with the local sales tax authorities in the state where the delivery center is located or shall deliver through a settlement agent who has necessary registration. However, in case of select commodities wherein exemption is available for the purchasers from the payment of sales tax, to avail such exemption they also need to have registration with local tax authorities or shall avail the services of the settlement agent as stated above for settling their purchase transactions. In such a case the purchaser need to give details of such exemptions being availed by them in requisite form and within the time specified failing which relevant tax is levied. In case of Sellers who are empanelled under the composite scheme for Bullion in that State, whereby they deposit a composite amount in lieu of tax on purchase and sale of Bullion, such sellers are not entitled to recover Sales Tax at the time of sale from their respective buyers.

General guidelines for receiving/delivering clearing members • Receiving/Delivering Clearing Members should submit delivery information within the stipulated period before the contract expiry, which is presently last three days of the contract expiry through Trader Work Station. Exchange verifies and allocates delivery requests as per open positions of respective Members as per process put in place by the Exchange. After matching, a report is provid ed to the Members for all the receipts allocated/deliveries allocated against their delivery information. This is a Member specific report and is generated only for those Members who have a delivery /receipt position. This report will be made available on the next morning of Contract expiry date. In case of compulsory delivery contracts, all Members will have to deliver or receive the goods as per their open positions on the expiry day depending on their choice of delivery centre. They will receive a report of their obligation on the next morning of Contract expiry date.

• • •

13.2 For Receiving Clearing Members • Receiving clearing Members are required to send sales tax information along with additional information including buying client details by 1500 Hours on next working day after Commodities Settlement day as per Settlement Calendar. The data/information submitted by receiving clearing Members is processed for accuracy and completeness. In event of a receiving member failing to provide sales tax information within stipulated time, it is assumed that delivery is taken by member himself and accordingly relevant information is provided to delivering members concerned and the invoices will be raised in the name of the receiving Member. As no changes are possible once the file is uploaded Members should ensure that correct details are provided while uploading the file for Delivering Clearing Members Information submitted by the receiving clearing Members is provided to the Delivering clearing Members seeking the sales tax information for each delivery

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Sales tax settlement of funds shall be completed on or before by the evening of 2nd working day after Commodities Settlement day as per Settlement Calendar. The purpose of the file is to benefit the corresponding buyer member to get the accurate first hand details of the invoice/s made by the seller. Page 29 of 73 . Leased Line and Internet.doc” file. Seller clients shall generate and send the invoices through their members to Buyer clients through their buying members within 5 working days after Sales Tax settlement is completed . In the event of delivering member failing to submit sales tax information. it is assumed that there is no sales tax settlement to be carried out for deliveries made by him.12 (A) • • • • • The following details needs to be incorporated in the sales tax invoice given in Annexure 15. The specific details for upload are available on extranet “common” folder in “upload_settlement. 13. if any) as provided in the report can be passed on by the Delivering clearing Member to their Seller clients for generating invo ices.3 Invoice file on the Extranet Invoice detail file named “INV” is gener ated on E+5 days and uploaded on the Seller member’s Web Extranet. • The Delivering clearing Members are required to provide the information by 1500 Hours on or before 2nd working day after Commodities Settlement day as per Settlement Calendar.00 per month per buyer. The buyer client details and sales tax information (viz.13. sales tax settlement obligation is determined. However if the Seller fails to deliver the invoice within the specified time then he will be charged a penalty of Rs 5000. The said file contains details of IP address and timings for upload. besides other things• Delivery receipt no. Delivering clearing Members are required to ensure that Sales Tax amount submitted to the Exchange complies with applicable State Sales Tax laws. The details which needs to be incorporated are:• Invoice Number. A return file is generated and sent to the delivery clearing Members to inform the status of sales tax reporting. Based on the sales tax information submitted by the Delivering clearing Member. The sales tax invoice should clearly mention. If a Member needs to collect Sales Tax and/or Other charges and/or Resale Tax – they need to submit a single amount for settlement purpose. exemption form numbers. • Client name & address • Trading member -id of the seller member and buyer member • Whether Composite Tax scheme availed To facilitate Members to upload the details related to Sales Tax.transaction. Exchange shall provide this report to Delivering clearing Members by the evening on next working day after Commodities Settlement day as per Settlement Calendar. the Exchange facilitates the upload of SL12 details in file format which is generated through back office software of the Member (NCFE). through VSAT. As Illustration for the sequence of Events in Sales Tax Settlement is shown in Annexure 15. which is available to all members over Extranet. however the Invoice sent to Buyer shall have all different amounts indicated clearly. The path for the same is: Web Extranet/Invoice Folder/DNLD The Seller Member’s are expected to upload the invoice details.

com under the head “Customer Services” 13. Dispatch date. It will be the obligation of Members to obtain written confirmations from their Constituents regarding giving/receiving delivery to the specific Agent/s appointed by their Constituents. 3. as the case may be. The Constituents through their clearing Members must inform the Exchange of their desire to complete the delivery through an Agent by 5 PM on next working day after Expiry of Contracts. The Constituents may appoint Agents on the terms and conditions as they deem appropriate.• • • Invoice date. In case of failure to furnish the relevant invoice details it shall be deemed conclusively that invoice/s are not passed on to the corresponding buyer and penalties as per our the Exchange rules will be levied to the seller. However. The file is made available to the seller memb er in the respective folder till E+12 working days. Bye Laws and Regulations of the Exchange. cannot be recovered from the buyer. The constituent intending to avail the services of an Agent will have to give an authority letter to the Agent authorizing him to give or take. the liability for the payment of sales tax to the authorities shall continue to be on the seller irrespective of the amount he has collected from the buyer or not. the seller has an option to recover the sales tax by giving the quantum of sales tax in the SL 12 file on the next day of the settlement. 2.ncdex. r The terms and conditions as well as procedure for settling through Agents are as given below: 1. Receiving or giving delivery of commodities through authorized agents is an accepted practice in commodities markets. This information is then passed on to the corresponding buyer member on E+12 working days onwards. (For details please refer Circular No: NCDEX/CLEARING-016/2004/102 dated August 16. For further information Members should refer to the “Timelines” available on our website www. The Constituents shall be responsible for the acts of their Agents under the Rules. 6. 5. 4. The Agent so appointed should have opened commodity Demat account as required under the Regulation for affecting delivery of commodities on the Exchange platform and the Constituent will route his receipts/delivery only through the Demat account of the Agent so appointed b y him. as the case may be. 2004 )If the seller fails to give these details or informs lesser amount than the actual sales tax then the amount or short amount of sales tax.4 Failure to submit information on time to Exchange and its implications • In case of those commodities wherein the final settlement price is excluding the sales tax applicable on the transactions. • • Page 30 of 73 . Sales Tax Registration Number. the delivery of commodities on his behalf in accordance with the process and procedure prescribed by the Exchange. The Exchange also allows its Members to settle their trades upon expi y of contracts through authorized agents. Invoice will be raised by and/or in the name of the Agent giving the details of the Constituents for whom the invoice being issued/raised.

if the buyer has availed exemption for payment of tax against the declaration/exemption form he needs to forward the same to the seller within 5 business days of conclusion of sales tax settlement (i. shall be deemed to be a compliance of delivery obligation under the Regulations. 13. within 7 business days of the settlement date). their Constituents and the Agent. instead of respective Constituents. Similarly. Constituents availing the services of agents need to obtain a confirmation from such agents to be appointed before the same is communicated to the Exchange. Invoices and other relevant doc uments are issued within the period stipulated by the Exchange. The Members should provide the details of the agents. • It is to be noted that such arrangements are exclusively between the Members. 8. in the sales tax information files instead of details of constituents.7. it is considered as a local sale and thus does not attract any CST. Page 31 of 73 . from the agents before the same is The details of constituents are forwarded to the agents to facilitate settlement. The Exchange is not responsible for any disputes between the parties nor accepts any liabilities in connection with these arrangements. Sales tax and other statutory charges relating to the transactions will be settled by and in the name of the Agent.5 Sales tax obligations • The seller/selling Member needs to forward the invoice to the buying Member with in 5 business days of the conclusion of the sales tax settlement (i. The Exchange merely permits settlement obligations by giving/receiving delivery of commodities through the respective Agents as communicated to the Exchange through Members. 13. Similarly. In case of default the buyer/buying Member may formally approach the Exchange for intervention for compliance by the parties. warehouse accredited by the Exchange) and the sales tax applicable in the State where the delivery center is located is applicable in the absence of any inter state movement of commodities. Members shall provide Sales Tax information for Agent instead of Constituent and the same shall match as per the request submitted to the Exchange. Members should ensure that subsequent to the settlement the commodities are transferred to the agents’ Demat accounts from the Members’ pool accounts. where appointed. in the course of pay -in for the settlement the commodities will move to the Members’ pool accounts from the agents’ Demat accounts.e.6 • NCDEX transactions are LST • • As per the settlement process the seller and the buyer are deemed to have given and taken deliveries at the delivery center (i.e. if proper in other respects. within 7 business days of the settlement date) and the buying Member expected to forward the same to the buyer within next 2 business days.e. 9. • • • • The Members should ensure that: • • • Necessary confirmation is received communicated to the Exchange. The delivery of commodities to the Agent and receipt of commodities from the Agent. Before availing the service the Members and/or constituents need to comply with the necessary documentation as may be suggested by such agents.

he has to pay the applicable sales tax and the sales tax paid on his purchase becomes irrecoverable for him at the time of subsequent sales by him. the all necessary formalities are to be completed by the buyer on his own including payment of additional tax. The members. Similarly if the buyer is not registered or does not use settlement agent. Non furnishing of documents to the buyers are considered as violations of the Regulations and directives of the Exchange. the seller needs to make good the losses suffered by the buyer including the penalty levied by the sales tax authorities and Exchange also may impose penalties.e. In such cases. while depositing of goods in the warehouse and obtain the receipt / certificate for the same. Non-receipt of Mandi related documents The Buyers should inform non receipt of any settlement related document including mandi tax paid certificate/receipt to the Exchange within the specified timelines (i. who are under obligation to deliver or issue such settlement documents.: E+22 or 12th of the following month in which the contract expired. The members and their constituents giving/delivering should be conversant with relevant rules and be aware of all the documents required under the respective enactments of Mandi authorities in the p hysical settlement process. If no such information is received from the member/constituent who is entitled to receive such documents.• In case the buyer opts for moving the commodity to a place out side the sate of delivery.7 Implications of unregistered buyer & seller • • As mentioned above unless the parties avail the services of a settlement agent any delivery based transactions will have additional burden of sales tax on them. in such cases are in addition to the value of the Settlement documents required to be issued or given to the counter party. The above penalties levied by the Exchange would in no way be the substitute or be in lieu of any action that the Mandi tax authorities may impose upon such members for not Page 32 of 73 . such purchaser may be liable to penalties under the State sales laws. Non-furnishing of Mandi related documents The Exchange receives queries regarding the non receipt of mandi tax paid certificate/documents. if applicable. whichever is later). it is deemed that all the requisite information and documents have been exchanged between the selling and the buying members.8 Payment of Mandi Tax The member/client giving/taking physical deliveries in agricultural commodities are required to be registered with the respective local Mandis under the applicable APMC law. would be liable to pay the value corresponding to the settlement related documents and such value will be debited to them and passed on to the counterparty. The purchase from an unregistered seller makes the buyer liable for payment of sales tax. Besides. The members/clients are supposed to make payment of mandi tax. Mandi’s across India have specified different procedures for payment of these Mandi taxes and issuance of receipt for the same. The penalties levied. • 13. 13. Therefore the Exchange does not allow an unregistered seller to make any delivery-based transactions. In addition his subsequent sale transaction will again attract the sales tax even if he makes a sale of a commodity on which tax has been paid. The said mandi paid receipt /certificate is required to be endorsed/ handed over to the next buying member/client along with other settlement related documents like invoice.

13. it is assumed that the price is inclusive of Excise duty and no supplementary settlement is done for the same. o Purchase tax Wherever Purchase tax is applicable concerned buyers will have to get themselves registered and pay the purchase tax on his own. 2. CVD and cess thereon can be paid at the time of moving out the commodity from such warehouses.complying with the requirements of Mandi tax provisions of the respective States where deliveries happen. they can be stored in the custom bonded warehouses. the process as defined by the Exchange can take place under following cases. wherein the customs duty. • In case where the price quoted for trades in such commodities on the Exchange is inclusive of central excise: In such a case where the Excise duty is not explicitly mentioned. However. In such a case. only the manufacturer.9 Excise information and its significance • Any person offering physical delivery of commodities where Excise duty benefit would be availed by the buyer should have necessary registration with the Excise authorities under relevant provisions of Central Excise Act. Subsequently the buyer will have to take the goods Page 33 of 73 . If the price quoted on the exchange is inclusive of customs duty and exclusive of Countervailing Duty (CVD) and cess. As per prevailing laws on central excise. first stage dealer and second stage dealer who are registered under the Act can charge or claim credit of central excise paid by the manufacturer on such goods. which he will claim as other charges. The buyer will have to be either first stage dealer or second stage dealer duly registered under the Act in order to claim credit under CENVAT. he will have to issue a tax paid invo ice 13. All of these are to be paid simultaneously. In case of Imported Commodity 1. • In case where the price quoted for trades in such commodities on the Exchange is exclusive of central excise: 1. 1944 in order to pass on the CENVAT credit to the buyer. such Purchas tax can be e recovered in his subsequent sale on the NCDEX platform in cases where the final settlement price excludes all taxes (on sales as well as on purchases). If it is the buyer who is going to pay the Customs Duty: In case of imported materials. This can be done by issuance of Excise Invoice by the ma nufacturer or first stage dealer showing the amount of central excise paid. In such a case the seller pays the customs duty and cess thereon to the buyer. The seller will issue his Excise Invoice to the buyer mentioning therein the Excise credit passed to the buyer. Only manufacturers and first stage dealers registered under the Act will be able to claim central excise amount from the subsequent buyer provided they are in a position to pass on the CENVAT credit. • Members or their constituents who have to give or take delivery must be registered with the Central Excise authorities apart from being registered under Sales Tax/Value Added Tax.10 Customs duty and its significance Customs duty is payable on all imported commodities in addition to Countervailing duty and the cess thereon is also applicable.

However.within the ICIN validity period and shall pay the custom duty. The seller will be able to claim the amount paid towards CVD over and above the quoted price only if the seller is able to pass on the CENVAT credit to the buyer under the laws governing central excise irrespective of whether the buyer is entitled to claim or not. only importers and first and second stage dealers registered under the Act will be able to claim central excise amount to the extent of amount specified in the Central Excise Invoice which will have to be handed over to the buyers. whichever is higher. CD will be collected from the seller and given to the buyer.11 Registration for specific commodities In some commodities Members need to register themselves with certain agencies in order to deal in those commodities. This CD and CVD will be payable on the Landed Cost or the FSP. Such details regarding the commodities are available in the respective product notes. 2. T he CD and the CVD will be paid by the buyer at the time of taking physical delivery. 13. for the purpose. the subsequent first stage and second stage sellers will also be entitled to pass on the credit of the CVD on their sales. and (ii) only first and second stage sellers can pass on the credit and not any subseq uent sellers. Similarly. If the seller pays the Customs Duty (CD): The seller paying the customs duty will also have to discharge the liability for payment of CVD. Page 34 of 73 . CVD and cess thereon. Such seller will have to issue the appropriate invoice to the buyer to enable him to claim the credit for the CVD under the Cenvat Credit Rules. CD and CVD is payable simultaneously by the importer who files the Bill of Entry. As the Customs Duty is inclusive in the price. In other words. The requirements of this process would be: (i) registration of the sellers as well as buyers at the warehouse address. such sellers will have to obtain registration at the warehouse address in order to enable them to pass on the credit.

By 7 th of next month Demat request * Revalidation request * Remat request * * Assayers certificate* Monthly warehouse bill from DPs Rece ipt / payment of sales tax amount Issuance of Sales/Excise invoices by sellers Receipt of Sales/Excise invoices by buyers Page 35 of 73 . credit in beneficiary account within 7 days of fresh deposit On submission of all documents to the warehouse and payments to assayers. credit in beneficiary account within 7 days of revalidation request Physical delivery within 2 days of tendering remat request at the warehouse under normal circumstances 4 days of request and payment of assayers fees By 10th of the subsequent month On Sales tax Settlement date.14 Customer Service Group In case of disputes the Members & their constituents should contact the CSG group 14. on due submission of SL12 file to the Exchange Sales Invoices should be issued & dispatched by the seller to the buyer within 10 days of expiry o f the contract ( E + 10) normally by End of month for contracts expiring on 20th of the month The buyers would receive the sales invoices within 17 days of expiry (E + 17) .1 Clearing & Settlement Schedule On submission of all documents to the warehouse and payments to assayers.

the same should be reported to the Exchange w ithin the next 5 days Rs. kindly quote date and the reference number of the letter sent by the Exchange for speedy redressal of your complaints. C -1.17 14. 2 . Originals are not required to be submitted with the complaint form. Fill up the complaint form and attach all relevant doc uments/enclosures. 6 . 1 .2 Instructions for lodging complaint against Trading and Clearing Member of NCDEX All complaints must be addressed to the registered office as below: The Customer Service Group National Commodity & Derivatives Exchange Limited Exchange Plaza. 3 . by 15 of next month Within 60 days of the expiry of the contract to the seller 2 months after expiry If not received within 60 days of expiry. Block G Bandra Kurla Complex. 3 ) Copy of ledger accounts / statement of account. In case you are not in a position to furnish any documentary evidence. Mumbai . 4 . Page 36 of 73 . The same is to be sent to the registered office of the Exchange. Please tick wherever applicable. Please furnish only photocopies of documentary evidences. List of enclosures required to be attached with complaint form: 1 ) Copies of contract note or sale/purchase note and bills issued by member pertaining to the transaction under dispute. Exchange will not be able to process incomplete forms or complaints not supported with necessary details/documents. In case of reminders/subsequent letters. please specify the reason for the same. Tel (+91 -22) 66406789 Instructions for filling the client complaint form. 2 ) Copy of proof of payment.Reporting of non -receipt of valid Sales/Excise invoices to the Exchange Non -receipt of invoices or receipt of incomplete / invalid invoices should be reported to the Exchange within 22 days of expiry (E + 22) by 12 th of next month In the event of non -issuance of settlement related documents.400 051 India. 5 . Bandra (E).000/= per instance per month of delay Within 15 days of first time of activation * Except cotton ** Subject to quantity & actual deliveries happening at warehouse As per Annexure 15.5. debit of Sales tax / Excise / H forms amounts Issuance of H-Forms Reporting of non -receipt of H Forms Penalty for non-issuance of settlement related documents Training request Sales tax / excise amount will be debited from the seller member's settlement account and credited to the buyer member's settlement account on the 25th day after expiry of the contract (E+25).

2 ) Complaints against Trading and Clearing Member of NCDEX will be taken up for redressal only if accompanied by the relevant enclosures (documents) as mentioned above./Ms. received from the member in respect of your complaint. etc. amount. issued by you in favor of the trading member. All complaints are required to be lodged with the Exchange within 1 month from the date when the dispute arose or deemed to have arisen. 6 ) Any other relevant documents.1 Sample Beneficiary Account Opening Form ANNEXURE J Participant Name. As per Annexure 15. date. Note: 1 ) Complaints in respect of deals executed on the Exchange through a Trading and Clearing Member of NCDEX only would be taken up for redressal by the Exchange. 5 ) Copies of letters/correspondence written to and rep ly if any.4 ) Copies of bank statements showing details of payment.18 1 5 Annexures 15. Mumbai Pin Code 4 0 0 0 5 1 NRI-Non-Repatriable Others (please Page 37 of 73 . Address & DP Id (Pre -printed) APPLICATION FOR OPENING AN ACCOUNT (For Individuals Only) Client –Id Date : (To be filled by Participant) I/We request you to open a depository account in my/our name as per the following details: (Please fill all the details in CAPITAL LETTERS only) Type of Account Ordinary Resident NRI-Repatriable HUF specify) Sole/First Holder’s Details Name (Mr. Bandra Kurla Complex .) RAJESH KUMAR Name of Father/Husband Local / Permanent Address PANKAJ KUMAR Fortune Towers .

) Name of Father/Husband Address Pin Code Telephone No. Fax Number Occupation Third Holder Name (Mr. Bandra Kurla Complex . Fax Number Occupation Mobile No.) Relationship any) Address (if Pin Code Date of Birth (of minor) In Case of NRIs D D M M Y Y Y Y Page 38 of 73 ./Ms. E-mail ID: MAPIN ID: SMS facility Yes No NA Mobile No. E-mail ID: MAPIN ID: SMS facility Yes No Address for communication / Corporate Benefits (Default option is Local Address) Local / Permanant Address Correspondence Address / Foreign Address Guardian Details (In case the Sole Holder is a minor) Name (Mr./Ms.) Name of Father/Husband Address Pin Code Telephone No. Mumbai Pin Code 12345678 12345678 Mobile No. Fax Number Occupation Fortune Towers ./Ms.Correspondence Address Telephone MAPIN 1 2 3 4 5 ID: 8 9 Other Holder Details Second Holder NA Name (Mr. E-mail ID: 123456789 SMS facility Yes v 6 7 No rajeshkumar@yyyyyy.

/ G. Bank Name Branch Address RBI Approval Date D D M M Y Y Y Y Savings Account v 1234567890 ICICI Bank Ltd Bandra Kurla Complex.Foreign Address RBI Reference No. 1 2 3 4 4 5 0 6 0 7 0 8 5 1 9 IT Circle / Ward / District No.N.A. Sole/First Holder Second Holder Third Holder Guardian (In case of minor) Standing Instructions I/We authorise you to receive credits automatically into my/our account.R. Account to be operated through Power of Attorney (PoA) No. Yes Yes No No Please attach recent passport size photographs in the space provided below: Sole/First Holder Second Holder Third Holder Signature across Photograph Signature across Photograph Signature across Photograph Declaration Page 39 of 73 . Mumbai Current Account Pin Code 9 -Digit Code Number of the Bank and branch appearing on the MICR cheque issued by the Bank Financial Details P. Bank Details Bank Sub-type Bank Account No.I.

) Second Holder (Mr.) Guardian (in case of minor) (Mr./Ms. Name(s) of holder(s) Sole/First Holder (Mr./Ms. I/We further agree that any false / misleading information given by me or suppression of any material fact will render my account liable for termination and further action.The rules and regulations of the Depository and Depository Participants pertaining to an account which are in force now have been read by me/us and I/we have understood the same and I/we agree to abide by and to be bound by the rules as are in force from time to time for such accounts. I/We also declare that the particulars given by me/us are true to the best of my/our knowledge as on the date of making such application.) Signature(s) Page 40 of 73 .) Third Holder (Mr./Ms./Ms.

(To be signed by the applicant only in case of nomination) Page 41 of 73 ./Ms.) Relationship with the Applicant (if any) Address of Nominee Pin Code Date of Birth (in case of minor) Name of Guardian (Mr.) (in case Nominee is a minor) Address of Guardian D D M M Y Y Y Y Signature of Nominee Pin Code Signature of Guardian Photograph of Nominee Signature of Nominee across Photograph Photograph of Guardian (in case of minor) Signature of Guardian across Photograph Signature of two Witnesses Name 1./Ms. Name of the Nominee (Mr.NOMINATION I/We wish to make a nomination and do hereby nominate the following person in whom all rights and / or amount payable in respect of securities held in the Depository by me / us in the said beneficiary owner account shall vest in the event of my / our death. Address Signature with date 2.

Non. A minor can be nominated. trust. 3. Identity card/document with address. V. The cancellation of nomination can be made by individuals only holding beneficiary owner accounts on their own behalf singly or jointly by the same persons who made the original nomination. karta of Hindu Undivided Family. holder of power of attorney cannot nominate. b) Statutory/Regulatory Authorities. f) Colleges affiliated to Universities. Driving license. Page 42 of 73 . karta of Hindu Undivided Family or a power of Attorney holder. ICWAI. If the account is held jointly all joint holders will sign the nomination form. Voter ID Card. to their Members.. body corporate. II.. Instructions related to nomination. verified copies of Electricity bills (not more than two months old)/ Residence Telephone bills (not more than two months old)/ Leave and License agreement / Agreement for sale. giving the new address in respect of their own accounts. The nomination can be made only by individuals holding beneficiary owner accounts on their own behalf singly or jointly. Passport. All communication shall be sent at the adress of the Sole/First holder only. Driving license. MAPIN card. ICWAI. VI. g) Professional Bodies such as ICAI. issued by a) Central/State Government and its Departments. e) Public Financial Institutions. A non-resident Indian can be a Nominee. are as below: I. c) Public Sector Undertakings. body corporate. partnership firm. issued by a) Central/State Government and its Departments. Thumb impressions and signatures other than English or Hindi or any of the other language not contained in the 8th Schedule of the Constitution of India must be attested by a Magistrate or a Notary Public or a Special Executive Magistrate. f) Colleges affiliated to universities. Identity card/document with applicant’s Photo. Proof of Address: Ration card. subject to the exchange controls in force. As per NSDL Circular No. Nomination in respect of the beneficiary owner account stands rescinded upon closure of the beneficiary owner account. Bar Council etc. Selfdeclaration by High Court & Supreme Court judges. ICSI. MRD/DoP/Dep/Cir-29/2004 dated August 24. NSDL/PI/2004/1622 dated dated September 7. the name and address of the Guardian of the minor nominee shall be provided by the beneficial owner.individuals including society. 2004 pursuant to SEBI Circular No. 4. Bar Council etc. d) Scheduled Commercial Banks. The Nominee shall not be a trust. e) Public Financial Institutions. Similarly. 2004 a copy of any one of the following documents may be accepted as proof of identity / proof of address (local/correspondence/foreign address as the case may be): Proof of Identity: Passport. d) Scheduled Commercial Banks. the nomination in respect of the securities shall stand terminated upon transfer of the securities. body corporate. Transfer of securities in favour of a Nominee shall be valid discharge by the depository against the legal heir.individuals including society. IV. Non. trust. c) Public Sector Undertakings. PAN card with photograph. Voter ID Card. from time to time. and h) Credit cards/Debit cards issued by Banks. society. and g) Professional Bodies such as ICAI. Participants must verify the copy of the document with the original. III. to their Members. 2.______________________________ _____________________________ (Sole/First Holder) (Third Holder) ______________________________ (Second Holder) Notes : 1. In that event. Bank passbook. partnership firm. b) Statutory/Regulatory Authorities.

On cancellation of the nomination.2 Sample Member Pool Account Opening Form Depository Participant Name. karta of Hindu Undivided Family.2004 Client -Id (To be filled by Depository Participant) We request you to open a depository account in our name as per the following details: (Please fill all the details in CAPITAL LETTERS only) Type of Account Body Corporate Bank Trust X Others (please specify) FI FII OCB Page 43 of 73 . 5. If the beneficiary owner account is held jointly. Strike off whichever is not applicable. all joint holders will sign the cancellation form.12. Address & DP Id Received the application from Mr/Ms___________________________ as the sole/first holder alongwith _____________________________ and _______________________________ as the second and third holders respectively for opening of a depository account. the nomination shall stand rescinded and the depository shall not be under any obligation to transfer the securities in favour of the Nominee. VII. holder of power of attorney cannot cancel the nomination. Address & DP Id (Pre -printed) APPLICATION FOR OPENING AN ACCOUNT (For Corporates/Clearing Members only) Date :01.partnership firm. ========================================================= ============= Acknowledgement Participant Name. Please quote the DP Id & Client Id allotted to you in all your future correspondence. Date : _________________ Participant Stamp & Signature 15. Your Client Id will be intimated to you shortly.

Ltd. Pin Code Correspondence Address (if different) Pin Code Telephone No.Client Details Name of Corporate (Sole/First Holder) Registered Address Office Fortune Towers. Fax No. Bandra -Kurla Complex. 12345678 12345678 4 0 0 0 5 1 Other Holder Details Second Holder Name Name Father/Husband Address of Pin Code Occupation Third Holder Name Page 44 of 73 . Mumbai PQR Trading Pvt.

Reference RBI Date Approval SEBI Registration No. Bandra -Kurla Complex Pin Code 4 0 0 0 5 1 Page 45 of 73 .Name Father/Husband Address of Pin Code Occupation In Case of FIIs/OCBs/Others (as may be applicable) Foreign Address RBI No. Bank Name Branch Address 123456 ICICI Bank Ltd. (for FIIs) Bank Details Bank Account No.

9-Digit Code Number of the Bank and branch appearing on the MICR cheque issued by the Bank Financial Details P.N. NCDEX NCDEX 123 N/A PQR Trading Pvt. Sole/First Holder Second Holder Third Holder Standing Instructions ABCDE1234G IT Circle / Ward / District No. Ltd. No.A. / G. We authorize you to receive automatically into our account credits ? Yes ? No Clearing Member Details (to be filled up by Clearing Members only) Name of Stock Exchange Name of Clearing Corporation Clearing Member Id SEBI Registration No. Page 46 of 73 .I. We further agree that any false / misleading information given by us or suppression of any material fact will render our account liable for termination and further action. Trade Name CM-BP-Id Declaration The rules and regulations of the Depository and Depository Participants pertaining to an account which are in force now have been read by us and we have understood the same and we agree to abide by and to be bound by the rules as are in force from time to time for such accounts. We also declare that the particulars given by us are true to the best of our knowledge as on the date of making such application.R.

separate annexures should be attached to the application form. 3.Authorized Signatories (Enclose a Board Resolution for Authorized Signatories) Sole/First Holder First Signatory Name Kumar Rajesh Signature(s) Kuma r R Second Signatory Third Signatory Other Holders Second Holder Third Holder Mode of Operation for Sole/First Holder (In case of joint holdings. all the holders must sign) ? Any one singly ? Jointly by _____________________________________________________________________ ? As per resolution _______________________________________________________________ ? Others (please ___________________________________________________________ Notes: 1. Thumb impressions and signatures other than English or Hindi or any of the other languages not contained in the 8th Schedule of the Constitution of India must be attested by a Magistrate or a Notary Public or a Special Executive Magistrate. The names of the account holders should be exactly in the same order as mentioned on the certificates to be dematerialized. In case of additional signatures. Strike off whichever is not applicable. 2. Page 47 of 73 . specify) 4.

Ltd. Please quote the DP Id & Client Id a llotted to you (CM-BP-Id in case of Clearing Members) in all your future correspondence.2004 Depository Participant Stamp & Signature Page 48 of 73 . Date: 01.===================================================Acknowled gement Depository Participant Name.12. Your Client Id/CM-BP-Id (in case of Clearing Members) will be intimated to you shortly on acceptance. Address & DP Id Accepted/Rejected the application from M/s PQR Trading Pvt. as the sole/first holder along with _____________________________ and _______________________________ as the second and third holders respectively for opening of a depository account.

of bags This confirmation shall be treated only as an acknowledgement of receipt by the warehouse and cannot be treated as a warehouse receipt for the purpose of transfer and/or borrowing etc.3 Format of Warehouse Acknowledgement Confirmation of receipt of commodities at the warehouse Name and address of the warehouse: ___________________________________________ (Warehouse stamp) Received from M/s. __________________________________________________ commodities as detailed below subject to verification of quality towards issuance of Demat credit. The warehouse shall confirm to the depositories the above receipt only on confirmation of quality by the approved assayers of National Commodity & Derivatives Exchange Ltd. Commodity description: Net (MT) weight Remarks Truck No. No. We confirm that the commodities received by us as stated above are covered under the insurance policy taken by us for the storage of commodities at our warehouse.15. For and on behalf of: Warehouse name: Authorized signatory Date: Time: Page 49 of 73 .

1.1 Re marks.4.1. / (Net weight accepted inside the warehouse) No.JODHPUR Name of the Depositor Rajesh Kumar Address of the depositor Jodhpur For the account of (beneficiary name) Rajesh Kumar Date of Deposit: Cli ent Id 15.3 DP Id 15.4.4. if any Details of commodities being deposited Page 50 of 73 .4.2004_______ Deposit: 11 am Name and location of the warehouse XYZ.4.1. of bags / units/ lots /Packages (for grains) GUAR 10 MT 100 15.12.4. No.4.4.1 Sr.1.1.4 Sample of Commodity Deposit Form 15. in Metric tones / Kgs.2 Client Name 1 0 0 0 0 0 0 1 Rajesh Kumar Details of commodity Demat account to be credited with 15.15.3 (To be filled in by the depositor) Time of 15.4 DP Name I N 3 0 0 X X X Xyz Ltd.1. 15.1 Details of commodities deposited Qty.4.2 Commodity Deposit Form

I/we hereby declare that the commodities being deposited herein belong to the beneficiary as stated above and are free from any encumbrances. RKUMAR Signature of the depositor Acknowledgment from the warehouse Name of the warehouse ________________________________ We hereby acknowledge the receipt of (Quantity) __________ (Unit) __________ of ______________________ (commodity details) of _______________ grade specifications from ________________________________ (Name of the depositor) to be credited for the commodity Demat account of bearing Client Id: _______________ and DP id: __________________ on ______________ at _________ am/pm. Authorized Signature(s) Seal Page 51 of 73 .. I/we hereby request the warehouse to accept the deposit of the commodities and credit the same to the account of the beneficiary stated above subject to approval by the assayers.

12. Bandra Kurla Complex. Bandra Kurla Complex. Mumbai 400051 Pin Code 400051 ICIN INC000002013 ICIN Description NCDEX KERALA ST. Mumbai 400051 Date: 31.5 Sample Transaction Statement Depository Participant’s Name [DP Id: IN300XXX] DP Address: Fortune Park.2004 Client Id Name(s) holders Address of 10000001 Rajesh Kumar Category Beneficiary Status Active Fortune Towers.12.2004 To Date :31.2005 555555 By Corporate Action Closing balance 20 10 Credit Debit Balance 10 Depository Participant’s Seal & Initials Page 52 of 73 .WAREHOUSING CORP KOCHI PPRMLGKOC PEPPER METRIC TON 15JN05 MALABAR GAR Transaction Type Date Transaction No Description Opening balance Transactions From Date : 01.

Please note that the credit will be given to the same Client Id/ DP Id combination for which re -validation request is received._________________________________ Date: 20.2004 Page 53 of 73 . All costs/charges /expenses etc.15. JODHPUR IN300XXX 10000001 IN0000000156 GUAR GUM 1111 5 Expired on 15.12.) ----------------------------------------------------------------------------------------------------------Warehouse Acknowledgement Received request for re -validation of the commodity Guar Gum for 5 MT held under ICIN code IN0000000156 credited in client Id: 10000001 with DP Id IN300XXX.12. and by re XYZ. in this connection shall be borne by the beneficiary/ies themselves.12.2004 (to be filled in warehouse after testing) Signature of beneficiary/ies: 1.2004 (The beneficiary who wants to re -validate the commodity shall contact the assayer for testing the commodity in consultation with the warehouse.6 Sample NC DEX Commodity Deposits . Authorized signatory: Warehouse Name: XYZ Date: 20.Revalidation Form We hereby request you to arrange for the re -validation of the commodity deposit held by us under following details: Warehouse Name DPID Client ID ICIN Commodity name Grade Qty in units (MT) Assayer remarks Ref No. Rajesh Kumar 2.

2004 I/We intend to receive physical delivery of the below mentioned commodities/metals and authorize that my/our account be debited by the quantity of commodities/metals mentioned below for this purpose. Address & DP Id (Pre -printed) PHYSICAL DELIVERY REQUEST FORM / REMAT REQUEST FORM (RRF) (For commodities/metals) Request No.15.12. I/We declare that the below mentioned person (s) are the beneficial owners of the commodities/metals mentioned.7 Sample Physical Delivery Request Form / Remat Request Form Depository Participant’s Name. _________ (Pre -printed) Date: 10. Account Holder Name Name commodity/metal C-Id Unit of Measurement Quantity to be delivered (in figures) (in words) (Integer) (And decimal) Signature(s) First/Sole Holder RKUMAR Second Holder Third Holder of 1 0 0 0 0 0 0 1 Rajesh Kumar Guar Gum I N 0 0 0 0 0 0 1 0 5 6 Metric Ton 1 0 . Ten Only Page 54 of 73 . ___________ (to be filled by DP) Serial No. Account No.

The account has sufficient balances to accept the request for physica l delivery. It is also certified that the beneficial owner(s) signature(s) is/are verified and found in order. 10000001. as extracted from the records.Participant Authorization Received the above mentioned request for physical commoditie s/metals from the account holder mentioned above. are enclosed. Forwarded by : Name of the execu tive Signature (Seal) Acknowledgment Depository Participant’s Name. _________ (Pre -printed) We hereby acknowledge the receipt of request for physical delivery for _______10________ (quantity) ________MT____ (unit of measurement) of _______Guar _Gum_____________ (commodity/metal) from Rajesh Kumar (Name) having Account No. Participant's Signature Date: (Seal) Page 55 of 73 . delivery of the The application form is verified with the details of the beneficial owner’s account and certified that the application form is in order. The other details of the beneficial owners (Client Master Report). Address & DP Id (Pre -printed) Serial No.

SBMEALIDR. GURCHKMZR. TMCFGRNZM. RMOEXPGNR. GNSHELJNG. YPECANMUM Commodities Physical Settlement STL Type G K STL Description E+2 E + 2 (SR) NSDL Market Type T+2 T+2 SO STL No. RMSEEDJPR. URMFAQMUM Sellers Right Contracts: CASTORDSA. RICRAWDEL. COFIAPAHSN. PPRMLGKOC. 2006025 2006017 Expiry Date 20-Sep-06 20-Sep-06 Delivery and Funds Pay-in 22-Sep-06 22-Sep-06 Delivery and Funds Pay-out 22-Sep-06 22-Sep-06 G A B K A B Price Adjustments for Premium/Discount Settlement and Close Out STL Type A STL Description E+2 & E+2 (SR) STL No. MTHOILCHD. SBMEXPKDL. RICTBASDEL. CHLL334GTR. JUTB65KOL. COCUDCAKL. SYOREFIDR Compulsory Delivery Contracts: CHARJDDEL. RICPUSADEL. SYBEANIDR.The Settlement Type for every commodity is to be noted using the key give below:Please note the Settlement Type for every commodity using the key given below Settlement Type Premium / Discount Physical Sales Tax Settlement Settlement Settlement and Close Out Symbols Intention Matching Contracts: CRDPOLKDL. SUGARMMZR. MGCCBBRNM. STLINGGZB. MAIZYRNZM. MSRBLDIDR.8 Format of Settlement Calendar A Format of settlement calendar is given below . SUGARSKOL. RBDPLNKAK. MSOILCGNR.15. Expiry Date Funds Pay-in Funds Pay- Page 56 of 73 . GARGUMJDR. COCUDCKDI. JUTRAWKOL. RICPARRPR. WHTSMQDELI. SLVPURDEL. JEERAUNJHA. CSHW320KLM. TURLMNMUM. RBRRS4KTM. COFIRCBKSN. GARSEDJDR. SPGIRNRPR. 2006032 Expiry Date 20-Sep-06 Funds Pay-in 22-Sep-06 Funds Payout 22-Sep-06 Sales Tax Settlement STL Type STL Description STL No. GNOEXPRKT. POTFAQDEL. GLDPURMUMK.

STL – Settlement.out B E+4 & E+4 (SR) 2006032 20-Sep-06 26-Sep-06 26-Sep-06 ‘E’ – Expiry date of Contract. SR – Sellers’ Right Page 57 of 73 .

2004 I/We hereby request you to debit my /our account as per the following details For Market Trades (Receiver Details) CM-BPId CM Name Marke t Type Settle ment No.WAREHOUSIN G CORP KOCHI PPRMLGKOC PEPPER METRIC TON 15JN05 MALABAR GAR 10 Ten Only Quanti Quantity (In Words) IN1234 56 PQR Trading XX 20040 07 For Off-Market Trades (Receiver Details) N/A DP Id DP Name Clie nt ID ICIN Security Name Quantity (In Figures) Quantity (In Words) Execution Date (dd-mm-yyyy) 2 7 1 2 2 0 0 4 Page 58 of 73 . Address & DP Id (Pre -printed) DELIVERY INSTRUCTIONS BY CLIENTS Serial No.15.9 Sample Account Transfer Form Depository Participant Name. ICIN Security Name ty (In Figures) INC00000201 3 NCDEX KERALA ST.12. (Pre -printed) Client Id ( Pre -stamped) Date:2 7.

3. Page 59 of 73 . 2. all joint holders must sign. Date & Time (in words) ______________________________ __ 1____RKUMA ___ 2______ 3_________ Authorized Signatory(ies) Instructions: 1. To be submitted in duplicate for acknowledgement. In case of joint holdings. of Instructions (in figure) ______________ Depository Participant Stamp.No. Please strike off unused rows.

To be submitted in duplicate for acknowledgement 2. Address & DP Id (Pre -printed) DELIVERY-OUT INSTRUCTIONS BY CLEARING MEMBERS FOR PAY-IN Serial No. Date & Time Instructions: 1.12.2004 Date : ___________________ Client Id (Pre -Stamped) 10000002 I/We request you to debit my/our CM account as per the following details: Name of Clearing Corporation Instruction Type ICIN Security Name NCDEX ο X Reversible ο Irreversible (Please tick in only one of the boxes as ma Quantity Quantity Instruction N (In Figures)(In Words) INC000002013 NCDEX KERALA ST. it will be assumed to be a reversible delivery-out instruction Authorised Signatory (ies) Page 60 of 73 . 4. In case it is not explicitly mentioned that it is an irreversible delivery-out instruction. Irreversible delivery-out instructions are instructions which cannot be cancelled once effected.: 2 0 0 4 0 0 7 Execu Date: PQRTRADING Depository Participant Stamp. 3.10 Sample Delivery-Out Form Depository Participant Name. Use separate forms for reversible delivery-out instructions and irreversible delivery-out instructions.15. (Pre -printed) Date:28.WAREHOUSING CORP 10 KOCHI PPRMLGKOC PEPPER METRIC TON 15JN05 MALABAR GAR Ten Only ( To be filled Market Type: XX Settlement No.

Bandra Kurla Complex.15. Sub: Account for Early Pay-in of commodities through CDSL We are interested in making early pay-in of commodities through CDSL. Mumbai – 400 051 Dear Sir / Madam. Yours Sincerely Authorized Signatory Page 61 of 73 . We would request you to advise us the account number allotted to us for this purpose. National Securities Clearing Corporation Ltd (NCDEX Clearing House).11 Format of Letter from CMs for Opening of Early Pay-in A/c at CDSL Date: To. We hereby authorize NCDEX Clearing House to operate the above stated account on our behalf and execute transactions as may be deemed necessary. We therefore request you to open an early pay-in account based on the details given hereunder: Name of the Member Trading Code Member Clearing Member ID Communication Address City State Country Pin Code PAN Number CDSL A/c No. we hereby authorize NCDEX Clearing House to debit our account towards any charges that may be levied by CDSL on account of transactions in this account. Further. Exchange Plaza. Bandra (E).

Name: Designation: Page 62 of 73 .

) Commodity Gold 1 KG having T+1 Settlement Cycle & T+3 days for Sales Tax Settlement Tender Date (16th) Submission of Delivery / Receipt Requests Allocation of Delivery / Receipt Positions & Page 63 of 73 . Return file information Members provided by NCDEX on Status of submitted by receiving clearing Next Working day Settlement date (23rd) after Downloading of Information for delivering clearing Members for submitting Sales tax amount information 2 Working days Settlement date (24th) after Submission of Sales Tax information by delivering clearing Members by or before 1500 Hrs. Return file information Members provided by NCDEX on Status of submitted by delivering clearing Completion of Funds settlement for Sales Tax amounts Seller client to generate and send the Invoice to buyer client within 5 working days after Sales Tax Settlement is completed.12 (A) An illustration -Sequence of Events in Sales Tax Settlement Commodity Chana having E+2 Settlement Cycle & E+4 days for Sales Tax Settlement Contract Expiry Date (20th) Submission of Delivery / Receipt Requests Allocation of Delivery / Receipt Positions downloading of reports for clearing Members E+2 Settlement Date (22nd) & Delivery & Receipt of actual quality & quantity of commodity by respective clearing Members Submission of Sales Tax information by receiving clearing Members by or before 1500 Hrs.12 (B) An i llustration -Sequence of Events in Sales Tax Settlement for staggered delivery of Gold (1 Kg.15. 15.) and Silver (30 kgs.

Return file information Members provided by NCDEX on Status of submitted by receiving clearing Next Working day Settlement date (18th) after Downloading of Information for delivering clearing Members for submitting Sales tax amount information 2 Working days Settlement date (19th) after Submission of Sales Tax information by delivering clearing Members by or before 1500 Hrs. 00001 Client ID12453678 DPIDIN300017 Date Request you to move securities in my/our account as per the details: FROM Market Type Settlement No T+2 SO 2 0 0 5 0 1 3 TO Market Type Settlement No Page 64 of 73 . Return file information Members provided by NCDEX on Status of submitted by delive ring clearing Completion of Funds settlement for Sales Tax amounts Seller client to generate and send the Invoice to buyer client within 5 working days after Sales Tax Settlement is completed. 15.13 Sample Intersettlement Form DP NAME INTER – SETTLEMENT INSTRUCTIONS ___________________________________________________________________ ___________ Sr.downloading of reports for clearing Members T+1 Settlement Date (17th) Delivery & Receipt of actual quality & quantity of commodity by respective clearing Members Submission of Sales Tax information by receiving clearing Members by or before 1500 Hrs. No.

14 Sample Sales Tax Invoice To be given by the Seller Buyer’s Name & Address Seller’s local sales tax/VAT registration number: Delivery/Receipt No. Date & Time Authorised Signatory (ies) 15. …………………………….15 Sampling Request Letter (to be submitted by the holder forwarding the remat request) Date: The Manager. Page 65 of 73 .(As give n in SS_06 File) Invoice No.ICIN INC Security Name XXXXXX Quantity (in figures) XX Quantity (In Words) Instruction (To be fille Execution Date Stamp. Seller Member name & Address Buyer Member name & Address Warehouse Name Location and Invoice Date Seller Member TMID/CMID Buyer Member TMID/CMID 15.

Name and signature of Depositor * " (Acknowledgement) (to be submitted at the time of taking physical delivery) We hereby acknowledge the receipt of Sampling Request Letter for _______(MT/Kgs) of ______________ (commodity) from _______________ (name of holder) having the ICIN INC____________ in demat a/c identified by Client Id: ___________ & DP Id: __________. Quantity of Sample provided *:____________ Date *: Signature and seal of warehouse Manager * Manda tory Fields Page 66 of 73 . I may be assigned lots other than those marked to me. that in case I/ we default in taking physical delivery within 2 working days of collecting the sample. ICIN Quantity Name of the commodity I/ we request you to issue me representative sample from the lots constituting the ICIN for which remat request has been put forth by me/ us and mark these lots against me/ us. 2. I/ we further undertake the following: 1. 3.Name of the holder(s) Depository Details: Client Id DP Id Remat Request No. that I/ we shall take physical delivery of the lots marked to me under the above remat request within 2 working days of the date of accepting the sample. the sample quantity will be accounted for in the final quantity being delivered to me/us.

16 Sample form of Early Payin commodity details to be forwarded to NCCL Annexure A Draft of the Letter to be given by the Members mentioning client details on the Members letter-head for EPI to be faxed to NCDEX . Date: Page 67 of 73 .15. Mumbai – 400 051 Fax number 022. Bandra (E). Exchange Plaza.NCCL Department To NCCL – NCDEX Commodities Clearing & Settlement.2659 8442 Dear Sir or Madam: Sub: Client Details for Early pay-in (EPI) Please find below the client details for whom we have effected the Early pay-in. Bandra Kurla Complex. We understand and confirm that based on this information Early pay-in request will be processed for the sell open positions for these clients only.

400 051 India (Please fill in the relevant details as applicable). Issue: Invoice/Sales Tax Demat Remat Warehouse (Please tick) Details of issue Fill relevant details below Invoice / Sales tax / forms not received Counter member ID Detail of Form not received Sales tax amount Demat issue Warehouse receipt number Page 68 of 73 . Mumbai .We also understand that this shall be utilized towards settlement obligation. C -1.17 On the letter head of Member Date: __________ To The Customer Service Group National Commodity & Derivatives Exchange Limited Exchange Plaza. Bandra Kurla Complex Bandra (E). No Settlement Settlement Commodity Symbol ICIN Type No Client Code Quantity Thanking you. Authorized Signatory Name: Designation: CMID: TMID: Member Name: 15. Yours faithfully. Block G. Member name Client name Contact No. Sr.

/ Ms: Page 69 of 73 . C -1. Mumbai . In NSDL – the client id is an eight digit no.400 051 India.18 Complaint against Trading and Clearing Members of NCDEX National Commodity & Derivatives Exchange Limited Client Complaint redressal Form (Complaint against Trading and Clearing Members of NCDEX) Date: __________ To The Customer Service Group National Commodity & Derivatives Exchange Limited Exchange Plaza. Bandra Kurla Complex. Block G. could be a beneficiary or pool account – 16 digit no.Name of Assayer Date of Sampling Amount/date of payment to assayer Warehouse name / location Beneficiary account number Remat issue Remat Request number Warehouse Name/location Excess warehouse Charges Date of Physical Delivery Warehouse Name / Location Name of Client Contact details of Client Place: _______________ Name and signature of authorized signatory Please attach relevant details (if any) with the format *In CDSL – the account no. 15. Details to be filled in by the complainant Client code Client name Address for correspondence (Please give complete address) District / City PIN Code State Contact telephone no with STD code Mobile No Member name Branch address from where the trading account was opened District / City PIN Code Mr. Bandra (E).

Installation Instructions for existing users of NCFE 5. Any other document in support of your claim Place Signature of the complainant 15.exe which would install NCFE 5.19 Reduction of Exposure by the Member through NCFE The Member has to enter all details pertaining to squaring up of orders as per the fields given for the purpose in the NCFE front-end. Run setup.0 For existing users of NCFE 5. Download NCFE 5.e. Statement of account given by the trading 5.0 the steps for installation are as under: 1. The path of the new NCFE software on the FTP common server is “/Common/NCFE” folder Installation Instructions for NCFE 5. Contract notes 2.1 by default in “C:\Program Files\NCFE\” 3. “C:\Program Files\NCFE\”. 2.State Brief details of the complaint _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ Please enclose the below mentioned documents in support of the dispute Enclosures and extract it. Login to NCFE using username: ‘admin’ password: ‘admin’. “NCFE_Patch.exe”. Run the patch exe i. Create the upload & download directories – “UPLD” & “DNLD” in “C:\Program Files\NCFE\” if it doesn’t already exist. Download NCFE Patch Setup. 4. Run setup.1 setup. Bills 3.1 For new users of NCFE software the installation steps are as under: 1. of pages Enclosed (Y/N) and extract it. Daily MTM statement 4. 3. 2.e.exe & install the patch in the directory where NCFE is installed i. This exe will be at “C:\Program Files\NCFE\” or this exe can be run by clicking “Start” menu and then select Page 70 of 73 .

file should be uploaded in <Member code>/SQROFF/UPLD folder on Extranet The file naming convention is as follows SQROFF_YY_ddmmyyyy. replace the existing “NCFE. 4. For example. The instruction for creation and generation of the squaring up files in NCFE software are given in the Help file and provided in the Common extranet” is extracted.exe” with the new “ on your desktop then from the folder which contains the extracted files.e. These files should be uploaded into member’s folder in the Web Extranet i. Page 71 of 73 . The path of the Help file is: “/Common/NCFE/NCFE new exe. in the directory in which “NCFE Patch Setup.exe” and then click Ok button of Run dialog box.Tnn.exe to “C:\Program Files\NCFE\”.zip” is extracted to the directory in which NCFE is installed i. “C:\Program Files\NCFE\”.txt Where – ddmmyyyy– date of the file generation And YY – No of Rows in the file And nn – batch number If there is any change in the naming convention.SQROFF_04_19012005. Create a directory structure with a new directory named “SqrOff” in application directory and a directory named “upld” in this “SqrOff” directory. This exe will update the Broker_DB by creating new tables required. if you have extracted the NCFE Patch Setup. In the installation directory of NCFE. The file will be invalid for upload through web extranet.doc” Uploading steps to Extranet The square off files will be generated in the “C:\Program Files\NCFE \SqrOff\upld“. 5.exe” downloaded with the patch i. This means copy “NCFE.txt Eg .e. copy NCFE.exe” from the directory in which “NCFE Patch Setup.“Run” and in the run dialog write “C:\Program Files\NCFE\NCFE_Patch.e.T01.

In no event or circumstances shall NCDEX and / or its employees and / or its agents be responsible in any manner for any unintentional errors or omissions of factual differences. expressed or statutory is given in conjunction with the information and material. inclined. As the operational procedure may undergo changes from time to time. the contents of English version shall supersede. Page 72 of 73 .DISCLAIMER This booklet provides guidance on the operational aspects relating to physical delivery and settlement of commodities at NCDEX and is not intended to substitute or modify any Rule. you should keep track of such changes. Bye -law. In the event of any difference in the English version of this booklet with the booklet in any other language. This booklet cannot be a basis for any claims or demands or causes of action. While every care has been taken to ensure accuracy and adequacy of the information contained in this booklet. Regulation or any circular of the Exchange. no warranty of any kind.

Page 73 of 73 .Copyright © 2003-04 Na tional Commodity & Derivatives Exchange Limited.