«Chana Product Note ANNEXURE CHAPTER 1 - TRADING PARAMETERS Authority Unit of Trading Months Traded In Tick Size Basis Price Unit for Price Quotation ...»
Taxes Service tax Service tax will be payable by the members of Commodity Exchanges on the gross amount charged by them from their clients on account of dealing in commodities.
Sales Tax / VAT Local taxes/ VAT wherever applicable is to be paid by the seller to the sales tax/VAT authorities on all contracts resulting in delivery. Accordingly the buyer will have to pay the taxes/VAT to the seller at the time of settlement. Members and / or their constituents requiring to receive or deliver Chana should register with the relevant tax/VAT authorities of the place where the delivery is proposed to be received / given. In the event of sales tax exemption, such exemption certificate should be submitted before settlement of the obligation. There will be no exemptions on account of resale or second sale in VAT regime.
Premium / Discount Premium & Discount on the Chana delivered will be provided by the Exchange on the
basis of quality specifications:
The Exchange will communicate the premium / discounts amount applicable. Such amount will be adjusted to the members account through the supplementary settlement.
CHAPTER 3 - CLEARING AND SETTLEMENTDaily Settlement All open positions of a futures contract would be settled daily based on the Daily Settlement Price (DSP).
Daily Settlement Prices The Daily Settlement Price (DSP) will be as disseminated by the Exchange at the end of every trading day. The DSP will be reckoned for marking to market all open positions.
Final Settlement Prices The Final Settlement Price (FSP) will be determined by the Exchange upon maturity of the contract.
On expiry of the contract, the following types of open positions would be cash settled:
a) Delivery information not provided.
The open positions for which information have been provided for and have been matched by the Exchange, would result in physical delivery.
Spot Prices NCDEX will announce / disseminate spot prices for Chana relating to the designated delivery center and specified grade/ quality parameters determined through the process of polling a set of market participants representing different segments of the value chain such as traders, importers / exporters, processors etc.
The polled prices shall be input to a normalizing algorithm (like ‘bootstrapping’ technique) to arrive at a representative, unbiased and clean ‘benchmark’ spot price for Chana. The security of data and randomness of polling process will ensure transparency and correctness of prices. The Exchange has absolute right to modify the process of determination of spot prices at any time without notice.
Dissemination of Spot Prices Spot prices for Chana will be disseminated on daily basis.
Pay in and Pay out for Daily Settlement / Final Settlement The table below illustrates timings for pay in and pay out in case of daily settlement as well as cash settled positions for final settlement. The buyer clients would have to deposit requisite funds with their respective Clearing Member before “pay in”.
All fund debits and credits for the Member would be done in the Member’s Settlement Account with the Clearing bank.
Pay in and Pay out for final physical settlement The table below illustrates timings for pay in and pay out in case of positions marked for physical settlement. The buyers / sellers would have to deposit requisite funds / Chana with their respective Clearing member before “pay in”.
Additionally the supplemental settlement for Chana futures contracts for premium / discount adjustments relating to quality of Chana delivered, actual quantity delivered and close out for shortages, will also be conducted on the same day. Clearing Members are required to maintain adequate fund balances in their respective accounts.
Supplementary Settlement for Taxes The Exchange will conduct a separate supplementary settlement, as illustrated below, two days after normal pay out for completion of tax transactions.
In order to facilitate issue of invoice to right parties, the buyer Clearing Members are required to give the buyer client details to the Exchange latest by 15.00 Hrs on E+3 day.
The amounts due to the above differences will be debited / credited to Member’s clearing bank account similar to normal settlement.
Delivery not compatible to delivery size as Bad delivery
6. mentioned in contract specification.
7. Delivery beyond specified working hours. Bad delivery
8. Delivery without proper documentation. Bad delivery
9. Chana weighed at other than designated Bad delivery warehouse weigh bridge / weigh scale.
10. Delivery of Chana found contaminated on visual Bad delivery inspection.
NCDEX member :
Lorry No. :
1) QUANTITY : This is to certify that National Commodity & Derivative Exchange Ltd. ( NCDEX ) member / constituent _______________________________________________ has delivered __________
Metric Tons ( MT ) Net of Chana at the NCDEX designated warehouse:
The weight / tonnage of material delivered is as per weigh bridge / weigh scale in the premises of the designated warehouse.
2) QUALITY :
The results of analysis performed by our laboratory of the samples collected by
Ware House__________________________________ is stated below :
The material delivered by the above NCDEX Member is in accordance with the specification provided bearing grade _____________and valid up to ___________________.
The goods delivered may be accepted / rejected.