Tender & Delivery period

1st to 7th day after the Contract Month.

Buyer's & Seller's Intention

Last trading day of the Contract Month by 3.00 p.m.

Matching of Buyer's & Seller's intention.

On the basis of intention received from the buyers and sellers, the Exchange will match the total quantity offered by the buyers and sellers and with respect to the matched quantity, the allocation of delivery between the buyers and sellers will be done. The unmatched quantity will be closed out as per the DDR and actual delivery will be effected only to the extend of matched quantity.

Tender Days

1stday after the contract month by 3:00 p.m.

Tender Notice by Seller

The Seller will issue tender notice along with evidence of delivery to the Exchange in a specified format.

Delivery Period Margin

Nil. However, the buyers willing to take delivery would be required to deposit, on commencement of delivery period, an amount equivalent to the quantity of delivery intended to be taken calculated as per the DDR, which will be notified by the evening of the contract maturity date. Provided the Exchange as per intention received from the seller has confirmed such delivery.

DELIVERY LOGIC

 BOTH OPTION. DELIVERY WILL BE EFFECTED IN CASE BOTH SELLER AND BUYER AGREE.

Dissemination of Information on Tendered Delivery on Trader Work Station.

Upto 7.00 p.m. on designated tender days.

Delivery Order

Along with tender notice. Delivery Order will be submitted in specified format-giving details of Members/Registered Non-Members who shall perform delivery.

Each delivery order issued shall be in multiples of minimum delivery lots and shall be designated for only one delivery center and one location in such center.

It will be accompanied with Warehouse Receipt, and the certificate issued by the manufacturer in respect of Quality, which should confirm that, the delivery under reference confirms to the quality specifications mentioned in the contract specification. Delivery order once submitted cannot be withdrawn or cancelled or changed unless so agreed by MCX in writing. Members tendering the delivery order will have the option of delivering such grades 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.

Odd Lot treatment 

Not Applicable

Mode of Communication

Fax or Courier 

Allocation of Delivery

On last trading day after the market closing

Delivery Order Rate 

At Due Date Rate.

Pay-in (Funds) for 

Delivery. By 12 noon on 1st working day after maturity of the contract

Funds and Delivery Payout.

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 the Due date Rate notified by the Exchange.

Delivery Center 

Deliveries can be effected from Exchange designated warehouse at Mumbai within 20 Kilometers outside Mumbai octroi limit, which may be CWC or private warehouse.

Close out of open Positions and Penalty on defaulting seller. 

All outstanding positions on the expiry of contract shall be closed out at Due Date Rate and respective Pay-in and Pay-out of Funds of such close out shall be effected on 1st day after the Contract month by 01.00 p.m.

Legal obligation 

The members will provide appropriate tax forms wherever required as per law and as customary and neither of the parties will unreasonably refuse to do so.

Duties, Cess & Levies 

Price is not inclusive of import duty, sales tax, CVD or other charges. The buyer has to pay all such duties at the time of taking delivery as explained below.

Warehouse Charges, Fumigation Charges, Insurance & Transportation charges.

Borne by the Seller upto Funds Pay-out date.Borne by the Buyer after Funds Pay-out date.

Delivery Grades 

The selling members tendering delivery will have the option of delivering such grades as per the contract specifications. The buyer has no option to select a particular grade and the delivery offered by the seller and allocation by the Exchange shall be binding on him.

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 by producing warehouse receipt.

Sampling and Analysis at the time of delivery 

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

In case the Buyer has any doubt quality of material, he can opt for an Exchange approved surveyor's test. 

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 do 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. 

Weighment at the time of delivery. 

The goods tendered shall be weighed at two weigh bridges in the proximity, as per choice of the Buyer, and the average of the lorry weights will be taken as the weight of delivery. 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. The cost of weighing will be born by the seller.

Delivery Procedure. 

The Member or his client or final endorsee in possession of a Delivery Order shall be obliged to take delivery within next 5 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 as per rate to be notified by the Exchange.

Adjustment of transportation cost for delivery made at any designated delivery center other than the Ex-price quoted center. 

Not applicable.

Endorsement of Delivery Order 

The buying member can endorse delivery order to a client or any third party with full disclosure given to MCX. Responsibility for contractual liability would be with the original assignee.

Extension of Delivery Period 

As per Exchange decision due to a force majeure or otherwise.

Due Date Rate 

Due Date Rate is calculated on the last day of the contract maturity which shall be price of imported material at Mumbai without adding duties.

Charges and cost payable in respect of delivery 

The charges and cost payable by the buyers will be determined as follows in addition to the DDR stated above,Firstly the premium as notified by the Exchange at the time of commencement of the contract is added to the cash settlement price. For the contracts being launched herewith, the premium in respect of Nickel will be $ 500 per MT and in respect of Tin, it will be $ 240 per MT. Then the sum will be multiplied by the Exchange rate as per custom import rate notified just prior to or at the beginning of the contract maturity month, which will be effective for imports on the date of contract maturity. Thereafter, import duty applicable on that date will be added. At present, the import duty is 5 %, which is calculated on the figure derived after adding 1 % landing charge and 2 % High seas charge to the basic import rate including premium. (However, landing charge and High seas charge are considered just for the purpose of calculating import duty, otherwise it is not added to the cost.) Thereafter, CVD or Central excise duty, as applicable, will be added to that figure ( at present the rate is 16 %). Then, Clearing charges at the rate of 1 % will be added. Thereafter, sales tax will be applied on the derived figure (at present the sales tax rate is 5.4 %) and the summation will be the amount payable by the buyer. 

The factors relating to premium, import duty, CVD, central excise duty, clearing charges and sales tax are relevant only in respect of physical delivery, while in respect of all positions which do not result into delivery, the contracts will be settled at the Due Date rate calculated as above without any implication of penalty for non delivery.

Penal provisions 

After receiving intentions from the buyer and seller to take or give delivery if any of the parties fail to honour his obligations, a penalty of 1 % of the DDR will be imposed on him out of such penalty recovered, 90 % will be passed on to the other party and 10 % will be appropriated by the exchange. In no other case relating to settlement of position by way of closing out as per the DDR, penalty will be applicable.

Applicability of Business Rules 

The general provisions of Business Rules & 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 procedures, warehousing, Quality Certification, Margining, risk management from time to time. In case of any interpretational dispute or clarifications the decision of the Exchange shall be final and binding on the members and others.