Tender and delivery period: The tender and delivery period will commence on 1st day of the contract maturity month or if 1st day is a holiday, then it would commence on immediate subsequent working day. Normal trading in a contract will continue upto the last trading day prior to the day of commencement of tender and delivery period. No trading will be allowed in this contract during the tender and delivery period, that is from 1st December 2004 to 3rd December 2004.

Delivery period margin: There will be no delivery period margin, but the buyers willing to take delivery will be required to pay the entire amount on 1st day of the contract maturity period. Similarly, the sellers willing to give delivery have to deposit their delivery with Group 4 Securities, Mumbai on 1st day of the contract maturity month.

Buyer's and Seller's intention: The buyers willing to take delivery will be required to submit their intention to take delivery on the last working day prior to commencement of contract maturity month by 5 pm. Similarly, the sellers having net sale position and intending to give delivery will be required to submit their intention of giving delivery on the last working day prior to commencement of contract maturity month by 5 pm. On the basis of such intentions received, the Exchange will match the exact quantity of buyers and sellers intending to effect delivery and will confirm back to such sellers and buyers. All positions which remain unmatched in that process will be settled by way of difference and not by way of delivery. 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.

Odd lot position: In respect of gold, delivery in odd lot is not permissible. However if a member has, say a position of 2 Kg 300 gms, then upto 2 Kgs delivery can be effected, but the rest quantity has to be settled by way of difference. Hence the intentions for giving or taking delivery can be submitted only in multiples of 1 Kg.

Payment by the buyer: In respect of all buy positions, which have submitted their intention of lifting delivery and which has been matched with corresponding sellers willing to give delivery, as confirmed by the Exchange, will be required to make payment on 1st working day of the contract maturity month. After debiting his account, the Delivery order is issued in his favour advising Group 4 to release delivery to the buyer on the same day. The payment is to be made as per delivery quantity allocated to him multiplied by the settlement rate of last working day before contract maturity month. The buyer will also be required to submit requisite forms for sales tax purposes. In case of inter state movement, the CST or any other tax applicable is also to be paid by the buyer.

Clearing Agents of buyers and sellers: For the purpose of effecting delivery of gold, every member will be entitled to appoint a maximum number of two Clearing Agents, who will be entitled to receive and deliver precious metals on behalf of such member. 

These Clearing members have to submit requisite form, four photographs, a copy of their ration card/ driving license or other document, as may be specified by the Exchange. The Exchange will issue a photo identity card for each Clearing Agent, which will be duly signed and stamped by the Exchange and the member with lamination. At the time of giving or receiving delivery of precious metal, the Clearing Agent will be required to show this Card to Group 4 Securities persons. A list of all such Clearing agents will be forwarded by the Exchange to Group 4 Securities in advance.

Intimation about the Clearing Agents: By 5.00 pm on the 1st day of tender period, the member will be required to forward name of the Clearing agent, who will visit Group 4 Securities office for giving or lifting delivery. This information will be compiled by the Exchange and will be forwarded to Group 4 Securities immediately.

Delivery: On 1st working day of tender period, the buyer has to take delivery from Group 4 Securities Mumbai. The seller has to submit the delivery alongwith bill drawn in favour of individual buyers at the settlement rate.

Non performance by the seller: In case a seller who has submitted tender notice fails to deliver precious metals on 1st working day as per schedule stated above, the contract will be closed out as per the settlement rate and a penalty of 1% will be imposed on him, out of which 90 % will be paid to the buyer, while 10% will be appropriated by the Exchange.

Tolerance limit: In respect of gold, there will be no tolerance limit. The weight of gold bar must be 1 Kg.

Quality adjustment: The price of gold is based on 995 purity. In case a seller delivers 999 purity, he would get a premium. In such case, the sale proceeds will be calculated by way of delivery order rate * 999/ 995.

Validation process: On receipt of delivery, the Group 4 personnel will do the following validations:

Delivery process: In case any of the above validation fails, the Group 4 securities will contact the Exchange office and take any further action, only as per instructions received from the Exchange in writing. If all validations are through, then the Group 4 personnel will put the gold in bag/s and seal the same in front of the customer with unique tamper-proof seal/s. Then the custodian of Group 4 will cut a serially numbered Group 4 receipt (in triplicate consisting of White, Pink and Yellow slips), get the signature of the seller's clearing agent and signing the same for authorization, hand over the Pink slip to seller's clearing agent, send by courier the third copy (Yellow Colour slip) while retaining the White for Group 4 records. The receipt details in full are then entered into the package supplied by MCX and is uploaded to MCX server for authorization and further processing. Group 4 in front of the selling member's clearing agent deposit the said metal into a bag and seal it with a tamper-proof unique numbered Group 4 seal and give a copy of the same to the customer, send the second one to MCX for its records and third copy of the receipt for its record. The sealed bag will be vaulted in the same condition with Group 4 until further delivery to MCX customer. Even in case if the metal has to be sent to various destinations, it shall be done in same bag only. Each bag shall not contain any more than 20 Kgs of Gold and where the depository is more than 20 kgs., the same will be stored in multiple bags with each having individual seals with unique number. If the metal delivered by a seller has to go to 10 different buyers, 10 individual packets will be made for each buyer and unique numbers will be assigned to each packet. On this basis, it would also be apparent that how much quantity is to be released on the same day to the buyer at the same location and how much quantity has to move to other delivery centers, because the buyers are located in those centers.

Cost of transportation, insurance, etc.: The cost of transport, insurance, etc. for getting the delivery upto the Group 4 Securities delivery point will be born by the seller. If he keeps the delivery in the Group 4 Securities for some days prior to the date of actual delivery, then the vault charges, insurance, etc. upto the date of physical delivery will be born by the seller. The vault charges, insurance, etc. with effect from such date of physical delivery will be born by the buyer. The cost of movement of goods, air freight, Group 4 managerial charges, etc. will be born by the buyer. In case delivery of more than one buyer is moving in one consignment between one delivery center to another delivery center of Group 4 securities, then the cost will be shared by all such buyers, which will be intimated to them by the Exchange. If the buyer keeps the delivery for more days after the scheduled delivery out day, he will bear the cost of vault charges, insurance, etc. If the buyer requests for taking delivery at his office, the cost of transportation, insurance, etc. between Group 4 securities delivery center to his office will be born by the buyer. In the process of delivery movement, if any other cost is incurred, the Exchange will allocate the same among the buyers and sellers, as the case may be.

Release of delivery to the buyer: In case the buyer is lifting delivery at Group 4 Securities, Mumbai, delivery would be released to him on 1 st working day of the contract maturity month. If the buyer is willing to take delivery at some other center, then delivery will be handed over subsequently depending upon the transportation schedule of Group 4 Securities. At the time of taking delivery, the buyer can open the sealed packets in front of Group 4 personnel. If he is satisfied with the quantity, weight and quality of material, then he will issue receipt of the metals instantly. If he is not satisfied with the metal, he can insist for assaying by any of the approved assayers available at that center. If the buyer chooses for assaying, Group 4 person will carry the goods to the assayers facilities, get it assayed and bring it back to Group 4 facilities alongwith assayer's certificate. If the assayer's certificate differs from the certificate submitted by the seller in respect of quality or weight materially, then the buyer and seller have to mutually negotiate the final settlement proceeds within 1 day from receipt of assayer's report, however if they do not agree on any mutually acceptable amount within 1 day, then the Exchange will send the goods to a second assayer and in that case, the report received from such assayer will be final and binding on both buyer and seller. The cost of first assaying as well as cost of transportation from Group 4 to assayer's facilities to and fro will be born by the buyer, while the cost of second assaying, if any, will be equally divided between the buyer and seller. The vault charges during such period of first and second assaying, if any, will be born by both the buyers and sellers equally. If the buyer does not opt for assaying at the time of lifting delivery, then he will not have any further recourse to challenge the quantity or quality subsequently and it will be assumed that he has received the quantity and quality as per the bill made by the seller.

Release of payment to the seller: If delivery is released to the buyer in the manner stated above and he does not opt for assaying, the payment is released to the seller on the 2nd working day of tender period. If inter state movement of delivery is involved, payment is released to the seller on completion of delivery process.

Settlement rate: In the process stated above, delivery is possible only to that extent, upto which the sellers and buyers have submitted their intention, which has been matched by the Exchange and confirmed back to both the buyers and sellers. All positions, which are not so matched or in respect of which no intention in respect of delivery has been offered, will be settled by way of difference as per the Settlement rate fixed by the Exchange on the last working day prior to commencement of contract maturity month. Such Settlement rate will be the Official Closing price of Gold 1 Kg contract of the same maturity month. Such Official Closing price is fixed by the system on the basis of weighted average price of all trades in that contract ( Gold 1 Kg contract of same maturity) executed during last 30 minutes of the trading session.

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.