Tender and delivery period: The tender and delivery period will commence on 7th day of the contract maturity month or if 7th day is a holiday, then it would commence on immediate subsequent working day. Normal trading in a contract will continue upto the expiry of the contract 

Delivery period margin: With effect from the date of commencement of tender and delivery period, the delivery period margin of 25% on the net outstanding position will be applicable. Such margin will be applicable on the net outstanding position at member level in the contract entering into delivery period. If two clients of the same member have outstanding position in such contracts, the member himself can settle the delivery among his clients and such delivery will not be routed through the Exchange mechanism and therefore on such offsetting positions, the Exchange will not charge any margin, though the member is entitled to charge delivery period margin from such clients till fulfillment of their obligations.

Designated Tender Days: The tendering of deliveries shall be permitted only on specific tender days during the delivery period. The Exchange may notify multiple tender days in advance. The first tender day will be 7th day of the contract maturity month

Tender Notice: On each of the designated tender days, the members having net outstanding sale position in the maturing contract may submit a tender notice by 3.00 p.m. indicating the quantity they intend to deliver, along with place of delivery, address of the warehouse / go-down, etc. Such tender notice shall be submitted in the format specified by the Exchange along with proof of delivery. The tender notice in legal parlance would mean just an intention of making delivery and not an actual sale.  Once a seller has submitted a tender notice for specified quantity, he shall not square off his outstanding position to the extent of tender submitted by him. Such tender notice shall be in the format specified by the Exchange and shall be submitted at the corporate office of the Exchange by fax or courier.

Buyer's intention and allocation of tender order: The net buyers having net buy position on the date of commencement of tender and delivery period, which is 7th day of the contract maturity month, have to indicate an intention by 3.00 p.m. for lifting delivery on such day. On the basis of such intention received from the buyers, the tender notice received from the sellers is firstly allocated among the willing buyers and residual quantity, if any, is allocated to other buyers, irrespective of the fact whether they have given their intention for lifting delivery or not. Further, the buyer will not have any option about choosing the place of delivery, rather he has to accept delivery as per allocation made by the Exchange and communicated to him by end of that day. Once a delivery is allocated to a buyer, he shall not square off such position. The allocation of Delivery Orders to Members with net buy or long positions shall be final and binding on all members to whom it has been allocated and under no circumstances a member shall have any right to refuse or challenge the delivery allocation in his favour.

Buyer's option: If a delivery is allocated to a buyer on the 1^st day of the tender and delivery period, on the immediate succeeding day he is required to submit a request to the Exchange in the specified format stating that he is not willing to lift delivery and wishes to settle the contract. In such a case, such buyers are required to settle the contract as per the closing price on the date of refusal and also to pay a penalty of 2% of the Due Date Rate and the seller is informed by the Exchange by the next day, that is 3^rd day of the tender period, asking him not to deliver the commodity, and to settle the contract with the buyer in the manner stated above. In addition to above, the seller gets 90 % of the penalty amount recovered from the buyer so as to compensate him. The same right is available to the buyer in case of all subsequent tenders if permitted. In other words, if the seller offers delivery on the 2^nd designated tender day, the buyer will get this option to be exercised within 1 day of such tender. 

Payment by the buyer: In case the buyer does not exercise his option as stated above within 1 day of getting tender, then it is assumed by the Exchange that he is interested to lift delivery, even if he had not shown any intention on the 1^st day of tender period. Therefore, all such buyers are required to make payment within 2 days of getting tender document. The payment is to be made as per delivery quantity allocated to him multiplied by the closing price of the maturing contract on the previous day, which is subject to again adjustment with respect to quantity, quality and price on the actual delivery day. In case a buyer fails to make payment, the action relating to his declaration as defaulter is initiated.

Delivery Orders: All deliveries tendered by sellers on designated tender days shall be in the form of `Delivery Orders' issued in favour of the buyers, as per instructions of MCX along with the quality certificate from an Exchange Authorized Quality Certification Agency. The Delivery Orders shall be filled up in the prescribed form and shall clearly state the contract particulars including quantity, quality and the delivery center, which should be accompanied with a bill in favour of the buyer. The Delivery Orders must be received by MCX by 3.00 pm on the specified delivery days, otherwise it is treated as valid only for the subsequent delivery day.

Inspection of goods: On receipt of Tender Notice, the buyer to whom such delivery has been allocated will visit the place of delivery to inspect the delivery. Incase the buyer is satisfied then he shall lift delivery from the Exchange designated warehouse, after depositing full money with the Exchange in respect of delivery allocated to him multiplied by the closing price. Incase he has any doubt then he may get another quality certificate done and then accept delivery. If there is any dispute in the buyers quality certificate then the Exchange shall get the final certificate done which shall be binding on the buyer and seller. 

Each delivery order issued shall be in multiples of minimum deliverable lots and shall be designated for only one delivery center and one location in such center. The tenderer of delivery order shall also clearly disclose the identity of the Member/Registered Non-Member, if any, who shall be performing the delivery. The seller shall not issue delivery order at a place where there is a restriction against movement of goods from such place by any person or Government authority or local authority at the time of issuing such delivery order. The seller shall, at his cost, give permit to the buyer wherever such permit is necessary for movement of goods. If the seller is unable to supply such permit to the buyer, it will be treated as no delivery and he shall be liable to pay such penalty as may be applicable for failure to tender delivery. In case of inter state movement; the buyer will be required to submit requisite forms or to pay CST as per the rates applicable.
 
Delivery Order once submitted cannot be withdrawn or cancelled or changed, unless so agreed by MCX in writing.

Delivery Lot: The Red Chilli and Maize contracts traded at MCX are deliverable in lots of 10 MT. Members with a short open position opting to tender deliveries shall be permitted to issue Delivery Orders only in such lots.

Confirmation of Delivered: The delivery is considered as fully complete only after the buyer lifts delivery and confirms receipt of delivery of the same quantity and quality. Once the buyer has lifted the delivery, thereafter the seller is not responsible for any mismatch in weight or quality.

Delivery Grades: The Members tendering delivery will have the option of delivering such grades of Red Chilli or Maize as is permitted by the Exchange under the respective contract specifications. The buyer will not have any option to select a particular grade and the delivery offered by the seller and allocated by the Exchange shall be binding on him.

The Member tendering delivery will clearly specify the grade to be delivered in the Delivery Order. Once the delivery grade is specified, it cannot be changed for the same Delivery Order.

Evidence of Stocks in Possession: At the time of issuing the Delivery Order, the Member must satisfy MCX that he holds stocks of the quantity and quality specified in the Delivery Order at the declared Delivery Center. This should be substantiated by way of producing warehouse receipt and quality certificate from an Exchange approved Quality Certification Agency

The procedures followed for drawing samples and carrying out analysis tests shall be as per booklet issued by Bureau of Indian standards.

Pricing of Delivery Order: The basis price for a Delivery Order shall be the settlement price of the concerned contract on the day (which shall be a designated tender day) and on which the delivery is tendered. The basis price arrived at as above will have to be adjusted by applying the discount / premium in respect of quality.

Publication of Delivery Orders Issued and Allocated: MCX shall display on its system, within reasonable time, full details of Delivery Orders received on each designated tender day and the allocation made against the same.

Endorsement of Delivery Orders: The Delivery Orders allocated to the member with net long position shall be freely endorsable by him to his clients who may be either a member or a client. Such allocation can also be made by the buying member in favour of a third party, but such allocation can be only once and subject to the full disclosure of details of the third party to be given to MCX. However in case of dispute or default involving the endorsee, the responsibility for contractual performance shall remain vested with the original assignee of the Delivery Order (the buying member).

Delivery Procedure: The Member or his client or final endorsee in possession of a Delivery Order shall be obliged to take delivery within next 48 hours on making payment provided he has accepted the quality or by 14^th incase another quality certificate is required to be obtained. In the event that the Member or his client in possession of Delivery Order is unable to lift the material within such period, the seller shall claim and receive compensation in respect of warehouse charges, insurance charges, etc.  In the same manner if the seller fails to give delivery on the scheduled date, because the seller's representatives is not available to effect delivery, the buyer shall claim and receive compensation at the rate of Rs. 50 per delivery lot.

The Buyer has to intimate to the seller the program for taking delivery of the tendered goods within one day of getting delivery document, with a copy to the Exchange. The Seller has to confirm and intimate in writing to the buyer with a copy to MCX immediately on receipt of such information from the buyer about his confirmation or change request in such schedule.

Weighment at the time of delivery: The goods tendered shall be weighed at Buyer's option, at the Seller's weighbridge or at an independent weighbridge in the vicinity, and weights determined in this manner shall be treated as final and fully binding on both the parties. The Buyer's representative shall present himself at the warehouse installation at the time of delivery failing which the Seller will be entitled to claim compensation regarding delay in delivery in terms of warehouse charges, insurance etc. as decided by the Exchange.

Delivery shall be treated as complete if the Seller supplies a quantity that is within the minimum and maximum prescribed quantity. When a certain quantity is supplied and if it falls short of minimum permissible quantity then the delivery is not acceptable. Likewise when quantity supplied is more than maximum quantity then the balance shall be treated as excess quantity. For calculating the final shortage or excess delivery, the total quantity delivered by a seller is to be considered collectively as well as the minimum truckload permissible in each instance.

In case of a shortage the Buyer shall be entitled to claim the difference between the price payable as per the Delivery Order and the market price on the date of delivery from the Seller if the ready market price is higher; whereas in case of excess delivery the Buyer will pay for the excess quantity at the price which is lower of the delivery order price or the ready market price on the date of delivery.

Cost of Transportation and Insurance: The Member taking delivery shall in all cases bear transportation and insurance cost from the Exchange-designated godown to his destination. The Member or his client issuing the Delivery Order and giving delivery shall maintain adequate insurance cover for commodity held in stock prior to delivery and in no circumstances either MCX or the Member or his client taking delivery will be responsible for any losses prior to delivery being completed.

Extension of Delivery Period: The Exchange shall have the power to extend the period of delivery or provide for longer period of delivery in the Delivery Order itself if such an extension of time has become necessary due to a force majeure.

Process after contract maturity: The last date for tendering delivery is 11^th day of the month (preceding working day if 11^th is a holiday). For all positions, which did not result into delivery, the final settlement will be done on the basis of Due Date Rate.

Due Date Rate: In order to settle all outstanding position not settled by way of delivery, Due Date Rate is calculated on the last day of the contract maturity. This is calculated by way of taking simple average of last 5 days of the spot market prices. For obtaining the prices of spot market, the Exchange will take the prices from a panel of processors, dealers and brokers and take the average out of 3 prices taken on a day from three different entities.

Penalty for Non-delivery after giving the tender notice: The seller who does not deliver goods after giving the tender notice, will be subject to a penalty of 2%, out of which 90% will go the buyer, who could not receive delivery and 10% will be appropriated by the Exchange.

Applicability of Business Rules: The general provisions of Business Rules relating to the procedures not specifically laid down in this circular and decisions taken by FMC/ Board / Executive Committee in respect of matters specified above will apply mutatis mutandis. The Exchange may further prescribe additional measures relating to delivery procured and risk management from time to time.