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.

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 2nd day of tender period and the last tender day will be 16th day of the contract maturity month (subsequent working day if 16th day is a holiday) and in between there will be five tender days, which will be notified by the Exchange in advance.

Tender Notice: Prior to tendering delivery in the Exchange, the member must arrange delivery at a storage tank located in the delivery center, as specified in the contract for the specific commodity and the same is duly certified by the Exchange approved certification agency. 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. Such tender notice shall be submitted in the format specified by the Exchange alongwith proof of delivery, surveyor's certificate, etc. 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 day of the contract maturity month, have 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. 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 1st 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 by way of closing out. In such a case, such buyers are required to settle the contract as per the closing price of the maturing contract on 1st day of the tender period or if there is no trade on the 1st day of the tender period, then at the previous closing price. In addition to above, the buyer is required to pay a penalty of 1 % of the rate specified above. In such case, the seller is informed by the Exchange by the next day, that is 3rd day of the tender period, asking him not to deliver the commodity, and to settle the contract with the buyer as stated above. In addition to above, the seller gets 90 % of the penalty amount( 90 % of 1 % as stated above) 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 day of such tender and in the same manner the contract will be settled.

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 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. 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. 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.

Delivery Order once submitted cannot be withdrawn or cancelled or changed, unless so agreed by MCX in writing.

Delivery Lot: The contracts under reference 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. Any member, with an open position of such number of contracts that is not convertible into multiples of deliverable lots, shall be required to square-up such outstanding 'odd lot' before commencement of tender period of the contract so as to make the total deliverable quantity a deliverable lot. In case any member fails to square-up outstanding odd lot until the contract expires resulting into odd lot position at the commencement of tender period, the delivery upto the nearest completed delivery lot will happen in the usual manner, while the residual odd lot will be settled in the following manner:

If the buyer has an odd lot position, while the total sale position of the seller member is in market lot, the seller will have the option to give delivery or refuse to give delivery, as he may desire. In case he does not want to give odd lot delivery, the contract will be closed out as per the Due Date Rate and a penalty of 1 % will be imposed on the buyer having odd lot position and such penalty will be passed on to the seller.
If the seller has an odd lot position, while the total buy position of the buyer is in market lot, the buyer will have the option to accept delivery or to refuse to accept delivery, as he may desire. In case he does not want to take delivery, the odd lot position will be closed out as per the Due Date Rate and a penalty of 1 % will be imposed on the seller having odd lot position and such penalty will be passed on to the buyer.
If both the buyer and seller have odd lot position, then all such odd lot positions will be closed out and a penalty of 1 % will be imposed on concerned buyers and sellers, which will be appropriated by the Exchange. Provided that irrespective of the settlement procedure relating to outstanding odd lot position as stated above, MCX shall be at liberty to impose fine on the members for their failure to square off their odd lot position before maturity of the contract.

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 250 Kg. The delivery is considered as fully complete only after the buyer lifts delivery and confirms receipt of delivery with the same quantity and quality. 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 these oils 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 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.

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 storage tank. This should be substantiated by way of producing warehouse receipt and surveyor's certificate. Each Delivery Order shall be accompanied by a certificate from an approved surveyor as to the physical verification and certification of quantity of stocks in possession of tenderer at designated delivery center and quality specifications in conformity with the specifications of the grade being tendered. Such certification shall be dated and issued on the basis of inspection carried out not more than fifteen days preceding the date of the Delivery Order.

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

The cost of survey and issuance of certification by an approved surveyor shall be borne by the Member submitting the Delivery Order.

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 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.

Commingling of Vegetable Oil Stocks: The Members originating the Delivery Order or their clients giving delivery shall be permitted to hold commingled stocks of tenderable grade of oil covered by the said Delivery Order which shall mean that such stocks may be mixed or kept together with other stocks of the same grade of oil duly certified by approved Surveyors.

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 done 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).

In case of delivery of vegetable oil against his position in a vegetable oil contract, if the Seller tenders delivery from his own or private storage tank, that particular tank shall be sealed at both the inlet and outlet valves by the approved surveyor, certifying quality and weight. However if the Seller opts to give delivery from an approved Tank Terminal, then the warehouse receipts duly issued and certified by the approved Tank Terminal and surveyors respectively shall accompany along with Delivery Order certifying quality and weight.

All the Sellers tendering goods shall have the necessary Registration from the Sales Tax and obtain other licences, if any, required by them. In case the selling member does not have a Sales Tax Registration number then he shall appoint an Agent/Nominee who has the required Sales Tax Registration and deliver the goods through him. The Member giving delivery and the Member taking delivery will exchange appropriate tax forms as provided in law and as customary, and neither of the parties will unreasonably refuse to do so. In case any of the member or his client fails to provide necessary forms in respect of sales tax resulting into pecuniary loss to the either party, the Exchange will impose a charge on the party in default and after collection thereof, will pass on the same to the member, who or whose client has suffered such loss. In addition to above, the Exchange can impose additional penalty on the party in default.

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 1/10th 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.

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 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 limits. 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 truck load 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: In case the Buyer does not agree to the Surveyor's report as to the quality of the commodity, he shall desire for second sampling.

The system of drawing of samples tendered for delivery will be as prescribed in the Bureau of Indian Standards procedure. The samples shall be taken from the nozzle through which oil is being loaded in the tanker. Three Samples shall be drawn as under:
One for the Buyer - First Sample
One for the Seller - Second Sample
One for final reference, if it becomes necessary - Third Sample
If the first sample collected by the Buyer and analyzed by the surveyor appointed by him, conforms to the specifications, then the goods tendered for delivery shall be accepted and no subsequent claims from the Buyer regarding quantum of rebate or any other indemnification shall be admissible nor sellers shall be obliged to pass any sealed samples to the Buyer if requested subsequently. The sampling methods to be adopted for analysis will be decided by the Exchange.

If the first sample as examined by the buyer's surveyor fails to conform to the quality standards specified, the Buyer shall intimate the seller within 72 hours of collection of sealed sample along with a copy of the analyst's report. The seller shall immediately send the second sealed sample to an approved laboratory, which is also agreed by the buyer. The result of the same shall be binding on both the parties. In the event the Buyer and Seller do not mutually reach agreement with the results of the second sample test, then MCX shall send the third sealed sample to any one of the approved laboratories / surveyor, as decided by the Exchange.

The analyst's report of the approved and agreed independent laboratory shall be forwarded by MCX to the parties immediately on receipt of the same. In such case, the final payment to the seller will be made on the basis of test report received by the Exchange pursuant to the third test. The Exchange will also direct the party, in whose favour the result is declared to collect the cost of tests and detention charges from the other party. In case the commodity stands rejected then the seller shall be given 48 hours from the day of rejection to re-tender the goods. If the re-tendered goods does not conform to the quality standards, then it will tantamount to failure on the part of the seller to give delivery, which shall be closed out as per the Due Date Rate treating the same as shortage.

In order to ensure that tests are exactly comparable and that the results are consistent, the independent analyst shall determine the particular analytical test by applying the methods specified in relevant ISI. The analyst shall be required to append a certificate to that effect to the analysis report issued by him.

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 4 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, in consultation with the Vegetable oil complex Advisory Board 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 day of the contract maturing month (next working day if 16th 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 positions in these contracts, which are not settled by way of delivery, Due Date Rate is calculated on 15th day of the month. This is calculated by way of simple average of last 5 days of the spot market of the place which is the basis of the respective contract.. For obtaining the prices of spot market, the Exchange will take the prices from a panel of exporters, processors, dealers and brokers and take the average out of 3 prices taken on a day from three different entities. In addition to this, the seller who does not deliver goods, will be subject to a penalty of 1 %, 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.