Tender and delivery period: The tender and delivery period will commence on 16th day of the contract maturity month or if 16th day is a holiday, then it would commence on immediate subsequent working day. Normal trading in a contract will continue upto the contract maturity day, that is 15th day of the contract maturity month. If 15th day is a holiday, then it would be upto the preceding working day.

Delivery period margin: There would be no Delivery period margin applicable on the open position. However, the buyers willing to take delivery would be required to deposit on 16th day of contract maturity month an amount equivalent to the quantity of delivery intended to be taken calculated as per the Due Date Rate, which will be notified by the evening of the contract maturity date, provided that such delivery has been confirmed by the Exchange as per intention received from the seller.

Buyer’s intention and option: The net buyers having net buy position on the last day of the contract have to give an intention, whether they wish to take delivery. If they fail to give such intention, it will be presumed that they are not interested to take delivery and in that case, all such open positions will be closed out as per the Due Date Rate to be notified by the Exchange.

Seller’s intention and option: The sellers having net sale position on the last day of the contract have to give an intention, whether they wish to give delivery. If they fail to give such intention, it will be presumed that they are not interested to give delivery and in that case, all such open positions will be closed out as per the Due Date Rate to be notified by the Exchange.

Matching of buyer’s intention and seller’s intention: On the basis of intention received from the buyers and sellers, at the end of contract maturity date, 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 Due Date Rate and actual delivery will be effected only to the extent of matched quantity.

Delivery process: The seller, who has submitted his intention to give delivery and which has been matched and confirmed back by the Exchange, will be required to submit the Delivery order alongwith details of the storage tank, where Oil has been stored as well as the surveyor’s certificate indicating that the quality of oil confirms to the standards specified in the Contract specifications. Such documents must be submitted on the 16th day of the contract maturity month, or if 16th happens to be a holiday, then on the subsequent working day.

Payment by the buyer: The buyer, who has submitted his intention to take delivery and which has been matched and confirmed back by the Exchange, will be required to make payment for the quantity confirmed by the Exchange as per the Due Date Rate notified by the Exchange. Such payment must be arranged by way of creating adequate balance in the settlement a/c by 12 noon on 16th day of the contract maturity month, or subsequent working day, if 16th is a holiday.

Endorsement of Delivery Order: On 16th day of the contract maturity month, after debiting the buyer’s settlement account, the Delivery Order will be endorsed by the Exchange in favour of the buyer. Consequent upon such endorsement, the buyer will be entitled to take delivery from the storage tank of the seller, as specified in the Delivery order.

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.

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. Delivery in odd lots is not permissible. All positions in odd lots shall be closed out as per the Due Date Rate.

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 Oil 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 Due Date Rate.

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. However, the selling member will be responsible for any deterioration in quality, if it happens prior to giving delivery.

Endorsement of Delivery Orders:The Delivery Orders allocated to the member with net long position shall be freely endorsable by him to his clients. 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.

29. 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.

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 IS. 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 the Due date Rate notified by the Exchange.

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.

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 3 days of the spot market price (inclusive of all taxes) of Indore, 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 market participants associated with oil and take the average price. All positions outstanding on the last day of the contract, except such quantity for which matching has been done between the sellers and buyers effecting delivery, will be settled as per the Due Date Rate. In case there is a mismatch between the total quantities intended to be delivered and intended to be lifted by the sellers and buyers respectively, then the mismatched quantity is also settled as per the Due Date Rate.

Penal provisions: If the buyer, who has submitted his intention to lift delivery and which has been confirmed back by the Exchange, fails to arrange for clear funds in his settlement account by 12 noon on the 16th day of the contract maturity month (subsequent working day, if 16th is a holiday), then a penalty of 1 % of the Due Date Rate will be imposed on him for such failure to make payment and out of such penalty recovered from the buyer, 90 % will be passed on to the seller, while rest 10 % will be appropriated by the Exchange. On the other hand, if a seller who has submitted his intention to give delivery and which has been confirmed back by the Exchange, fails to give submit delivery documents on 16th day (subsequent working day, if 16th is a holiday) or if he fails to deliver Oil, when the buyer approaches him to take delivery as [per schedule specified above, or if there is a shortage in delivery beyond the allowable tolerance limit, then a penalty of 1 % of the Due Date Rate will be imposed on the seller for such non delivery or shortage in delivery and out of such penalty recovered from the seller, 90 % will be passed on to the respective buyer, while 10 % will be appropriated by the Exchange. In no other case relating to settlement of position by way of closing out as per the Due Date Rate, penalty will be applicable.

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.