Tender and delivery period: The tender and delivery period will commence on 1st working day of the contract maturity month. Normal trading in a contract will continue upto the expiry period.

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. Such tender days will be notified by the Exchange in advance. The first tender day will be 1st working day of tender period and the last tender day will be 16th working day of the contract maturity month and in between there will be two tender days, which will be notified by the Exchange in advance.

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 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 alongwith 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, so that it reaches the office latest by 3 p.m. on the date of Tender Notice.

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 1st working day of the contract maturity month, has to indicate an intention by 3 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. The buyer will be given 7 days time to pick up delivery tendered by the seller.

Buyer's option: If a delivery is allocated to a buyer on the 1st working 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 as per the Due Date Rate. In such a case, such buyers are required to settle the contract as per the Due Date Rate and also to pay a penalty of 3 % of the Due Date Rate. In such case, the seller is informed by the Exchange by the next day, that is 3rd working day of the tender period, asking him not to deliver the commodity, and to settle the contract with the buyer as per the Due Date Rate. 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. In other words, if the seller offers delivery on the 2nd designated tender day, the buyer will get this option to be exercised within 1 working day of such tender.

Payment by the buyer:: In case the buyer does not exercise his option as stated under point no 6 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 1st day of tender period. Therefore, all such buyers are required to make payment within 2 working days of getting intimation from the Exchange. 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 and quality. 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. 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.

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. The seller will also adjust the transportation cost and compensate the buyer for picking up the delivery from a delivery center other than Kadi. The rates of compensation shall be decided by the Exchange.

Delivery Order once submitted cannot be withdrawn or cancelled or changed, unless so agreed by MCX in writing. Provided further the place of delivery, which may be opted by the respective seller and buyer above shall be permitted only within the limit of 15 Kilometers of the municipal limits of Kadi, Patan, Deesa, Dhanera and Visnagar.

Permissible limits for Delivered Quantity: The delivery shall be deemed to have been provisionally completed for each delivery order whenever the seller has delivered the quantity for that delivery order within a tolerance limit of 100 Kgs. The delivery is considered as fully complete only after the buyer lifts delivery and confirms receipt of delivery with the same quantity and quality within 7 working days. Provided that if no confirmation or objection is received from the buyer within such time, as may be notified by the Exchange for specific commodity, delivery is considered as complete without any further recourse available to the buyer.

Delivery Grades: The Members tendering delivery will have the option of delivering such grades of castor seed as permitted by the Exchange under the contract specification. 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 delivery made will be checked by the Exchange designated quality certifying agency at the time of tendering delivery for permissible foreign matter as per the quality specifications given in the contract. In case the Buyers and Sellers agree to accept delivery then no further quality checking would be required. However, in case the buyer and/or seller desires that the quality of oil content is to be checked then the Exchange designated quality-certifying agency will check the quality and the cost of the same would be borne by both the seller and the buyer.

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. Such delivery grade shall be in conformity with the surveyor's certificate accompanied with the delivery document.

Delivery Centers: : Delivery can be made from any godown / warehouse within 15 Kms of municipal limits of Kadi, Patan, Deesa, Dhanera and Visnagar.

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 certificate.

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 wherever applicable.

Taxes, Duties, Cess and other Levies: All taxes and levies are inclusive in the price quoted ex-relevant delivery center except sales tax. The seller will deliver the material from the warehouse and thereafter the buyer may transport it to his destination as per his desire and the sales tax, subsequent to lifting of delivery shall be charged to the buyer. The delivery will also be adjusted for transportation cost, which will be collected from the seller and paid to the buyer in case the delivery is not given at Kadi.

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 7 working days from the date of handing order the delivery documents to him. He is also entitled to lift delivery during such period in installments, provided that on each day he has to lift at least 1/7th of his total allocated delivery. 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 MT per day.

At the time of taking delivery the quality certifying agency will ascertain the foreign matter and impurity content, based on which the payout will be adjusted. The payout will be to the extent of 75 % of delivery lifted till such time that the delivery is not complete.
a. 350 Grams - allowed free
b. 350 - 750 grams - single rebate
c. more than 750 grams - no free limit

The Buyer has to intimate to the seller the programme 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 weigh-bridge or at an independent weigh-bridge to be mutually agreed, 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.

Sampling and Analysis at the time of Delivery: The procedures followed for drawing samples and carrying out analysis tests shall be as prescribed in the contract specifications. The buyer will have 3 working days to revert back if he wants to go for oil content testing. In which case the parties mutually share the cost.

The system of drawing of samples tendered for delivery will be as prescribed in the contract failing which it shall be as per the Bureau of Indian Standards procedure. The samples shall be taken from the Seller's warehouse directly. Three Samples shall be drawn as under:
a. One for the Buyer - First Sample
b. One for the Seller - Second Sample
c. One for final reference, if it becomes necessary - Third Sample
These samples would be used for testing the parameters specified in the contract and the report of the agency would be binding on the buyers and sellers. In case the sample does not confirm to the delivery conditions then the buyer can reject the consignment or settle the transaction directly with the selling broker.

Cost of Transportation and Insurance: The Member taking delivery shall in all cases bear transportation and insurance cost from the seller's godown, after adjustment of Ex-Kadi transportation cost in case the delivery is from any center other than Kadi, 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. In case the delivery is in a center other than Ex-Kadi then the sellers will compensate the buyer for the transportation cost of picking delivery from a center other than Kadi.

Payment by MCX to the Tenderer: MCX shall pay the invoiced amount to the Member tendering delivery on completion of delivery and receipt of confirmation from the buyer to this effect. However, if the buyer fails to confirm or raise objection within such time, as may be specified by the Exchange for respective commodity, then the Exchange will pass on the proceeds to the seller. The price of delivery is based on the closing price of the maturing futures contract on the date of actual delivery by the seller and in case delivery is offered on the 16th day of contract maturing month, it would be the closing price on the last day of the contract. If there is no trade on the last day, then it would be the last closing price. Payment is released to the seller only after getting confirmation from the buyer about completion of delivery. However, if the buyer delays giving such certificate beyond 3 days from the date of lifting delivery or if he fails to lift delivery during the specified period, payment will be released to the seller, after giving a written notice to the buyer.

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 16th working day of the contract-maturing month. 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 15th day of the month. This is calculated by way of taking simple average of last 5 days of the spot market prevailing at the five delivery centers. For the purpose of castor seed spot market, the spot market price will be obtained from Kadi, Patan, Deesa, Dhanera and Visnagar and suitable adjustments to be made for making the price Ex- Kadi. In addition to this, the seller who does not deliver goods, will be subject to a penalty of 3 %, 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.