Delivery logic:
Both Option
Tender day :
1st working day after expiry of contract
Tender and delivery period:
1st to 2nd working days after expiry of the
Buyer’s and Seller’s Intention:
On the contract expiry day by 6.00 p.m. contract. Seller will submit copies of relevant documents
as a proof of holding stock at the time of giving his /her intention.
Mode of communication:
Fax/ Courier
Matching of Buyer’s and 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 of
open position will be closed out as per DDR and actual delivery will be effected only to the extent
of matched quantity.
Dissemination of the information on delivery intention on TWS
On the contract expiry day by 7.00 p.m.
Delivery period margin:
25% margin will be imposed during tender and delivery period on both buyers and sellers on
matched quantity.
Delivery period margin exemption:
Sellers are exempted from payment of margin, if goods are tendered during tender days of the
contract month with all the documentary evidences.
Delivery allocation :
- Date - On expiry date of the Contract
- Rate - At due date rate (DDR)
Delivery pay-in of Commodities :
E+1 working day by 5.00 p.m. (E stands for expiry)
Delivery pay-out of Commodities : E+2 working days by 5.00 p.m.
Pay-in of funds :
E+2 working days by 11.00 a.m.
Pay-out of funds :
E+2 working days after 2.00 p.m.
Penal Provisions :
After getting (matching) intentions from the buyer and seller to take or give delivery, if any of the
party fails to honour his obligations, a penalty of 2.5% of the DDR will be imposed on him.
Additionally, a replacement cost of 4% of DDR will be recovered from the defaulting buyer /
seller.
Out of the penalty, 2% will be credited to SGF and 0.5% will be credited to the counter party,
while out of the replacement cost recovered 90% will be passed on to the counter party and 10% will be retained by the Exchange towards administrative expenses.
Taxes, Duties, Cess and Levies :
Ex – Mumbai excluding all taxes, levies and other expenses
All other charges, levies or Cess, import or export duties and taxes applicable at the delivery
center will be on account of buyer.
In case of Inter-State movement, the buyer has to submit requisite forms or pay CST as applicable. Post lifting delivery all charges are borne by the buyer.
Close out of open positions:
All outstanding positions on the expiry of contract where expression of interest for tendering
delivery or receiving delivery has not been received and such positions where expression of
intentions have been received but have not found the counter party for honoring the
intentions, shall be closed out at due date rate and respective pay-in and pay-out of funds of
such close out positions shall be effected on the following day of last day of trading by 11.00 a.m.
Due Date Rate (DDR):
Due date rate is calculated on the last trading day of the contract on the basis of the spot
market price of crude, ex-Mumbai, excluding all taxes, levies and freight, as available for this
variety from various market sources and converted at the Rupee – US Dollar rate
prevailing on expiry.
Odd lot treatment:
Delivery will be effected only on delivery lot basis. In case there is any mismatch in the
position of seller and buyer then delivery will not be matched and accordingly the position will be
closed out at DDR and penalty to such buyer / seller will be levied a minimum penalty at 5% of
DDR. 90% of the penalty collected shall be passed on to the counter party while 10% will be
appropriated by the Exchange.
Storage, Insurance and Freight charges:
The freight, duty and all other expenses will be on account of the buyer
Mumbai
Delivery of Goods :
Each delivery shall be in multiples of minimum delivery lots and shall be designated for only one
delivery center and one location in such center. Delivery will be accompanied with duly
discharged Storage / Shipping / import / export documents, invoice and valid Quality Certificate,
as per contract specifications from the Exchange approved quality certifying agency/s. Delivery
once submitted cannot be withdrawn or / cancelled or / changed, unless so agreed by the
Exchange. Goods tendered under delivery shall be in conformity with the contract specifications.
Delivery grades:
The members tendering delivery will have the option of delivering such grades as permitted by
the Exchange as per the contract specifications.
The buyer will not have any option to select a particular grade and the delivery offered by the
seller and allocation by the Exchange shall be binding on buyer.
Evidence of stock in possession:
At the time of issuing delivery, the Member must prove to the Exchange that he holds stocks of
the quantity and quality specified at the declared delivery center by producing bank documents/
LC/ appropriate receipt.
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 and intimate the Exchange in writing within 48
hours of the commodity pay-out date.
Sampling Procedure ;
The system of drawing of samples tendered fordelivery will be as prescribed in the Bureau of
Indian Standards procedure. Three Samples shall be drawn as under:
• First Sample – for the buyer
• Second Sample – for the seller
• Third Sample – for final reference, if
necessary
If the first sample collected by the buyer and analyzed by the surveyor, out of the exchange
empanelled surveyor/s for the contract, 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 the
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.
Failure of First Sample:
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 the collection of sealed
sample along with a copy of the Surveyor’s report.
The seller shall immediately send the second sealed sample to another approved
laboratory (out of Exchange approved panel), which is also agreed by the Exchange. In the
event the buyer and seller do not mutually reach agreement with the results of the second sample
test, then the Exchange shall send the third sealed sample to any one of the approved
laboratories / surveyor, as decided by the Exchange.
Final Surveyor’s report;
The final approved laboratory and/or surveyor’s report shall be forwarded by the Exchange to the
parties immediately on receipt of the same. In case dispute on quality of the goods allocated to
the buyer is raised by the buyer before funds pay-out to the seller, the pay-out of funds to the
seller will be made on the basis of the final test report received by the Exchange, pursuant to the
third and the final test, or it would be recovered from the seller, if the payment was already
released.
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 it will be tantamount to failure on the part of the seller to give delivery,
whose outstanding short position, shall be closed out as per the Penal provision applicable for
seller default or any other rate as decided by the Exchange, treating the failure on the part of the
seller to give delivery as shortage. The decision of the Exchange in this regard shall be final and
binding to both the parties.
Obligations of the independent analyst ;
In order to ensure that tests are exactly comparable and that the results are consistent,
the final approved laboratory and / or surveyor shall determine the particular analytical test by
applying the methods specified in relevant IS.
The said laboratory and / or the surveyor shall be required to append a certificate or certificates to
those effects to the analysis report issued by the laboratory and/or surveyor.
Legal obligation:
Every member delivering and receiving warehouse receipt by way of delivery shall
provide appropriate tax forms wherever required as per law and as custom and neither of the
parties shall unreasonably refuse to do so.
Extension of delivery period :
The Exchange may extend the Delivery Period due to either force majeure or any other reason,
as it thinks fit in the interest of the market.
Applicability of Business Rules :
The general provisions of Byelaws, Rules and Business Rules of the Exchange and decisions
taken by Forward Markets Commission, the Board of Directors and Executive Committee of
the Exchange in respect of matters specified in this document shall form an integral part of this
contract.
The Exchange or FMC as the case may be, may further prescribe additional measures
relating to delivery procedures, warehousing, quality certification, margining, risk management
from time to time.
The buyer shall have to lodge his claim, if any, against quality and/or quantity of goods/ delivery
allocated to him if any, while retaining the disputed goods in the warehouse/s (without
lifting them out of the warehouse/s), within 48 hours from the date of scheduled commodity pay
out of the Exchange, failing which, no claim shall be entertained by the Exchange thereafter.
The Exchange is not responsible and shall not be held liable or accountable or responsible for
value of the goods/stock of the commodities stored/lying in Exchange designated
warehouse/s,vault agency/ Clearing House and which is fully/partially confiscated / seized by
any local or statutory or any other authority for any reason whatsoever or for any deterioration
in quality of the goods stored due to above reason or which have passed the Final Expiry
date and continue to remain in the Exchange accredited warehouse. The decision of the
Exchange shall be final and binding to all Members and their constituents in this regard.
(The interpretation or clarification given by the
Exchange on any terms of this contract shall be
final and binding on the members and others.)
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