................................................................................................................

PHYSICAL DELIVERY

GUIDE

V 1.1
7 – May - 2012

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 PREFACE TO THE PHYSICAL DELIVERY GUIDE

NCDEX is the only commodity Exchange in the country promoted by national level
institutions. This unique parentage enables it to offer a bouquet of benefits, which are
currently in short supply in the commodity markets. The institutional promoters and
shareholders of NCDEX are prominent players in their respective fields and bring with them
institutional building experience, trust, nationwide reach, technology and risk management
skills.

NCDEX is a nation-level, technology driven de-mutualised on-line commodity Exchange

with an independent Board of Directors and professional management - both not having
any vested interest in commodity markets. It is committed to provide a world-class
commodity exchange platform for market participants to trade in a wide spectrum of
commodity derivatives driven by best global practices, professionalism and transparency.

We are extremely happy to present to our Members and constituents the fourth edition of
handbook on physical delivery guide. It is the Endeavour of the Exchange to incorporate
the necessary changes in the existing process of physical delivery to smoothen the process
and make it more transparent. Members are requested to go through this handbook and
educate themselves the process followed by the Exchange in physical deliveries. In case
any further clarifications are required members are free to approach the customer service
group.

This book includes the latest developments and the existing processes to be followed by
the depositor and the buyer while dealing with physical commodities through the Exchange
delivery process with the accredited warehouses and other service providers of National
Commodity & Derivatives Exchange Limited.

We express our gratitude to all those who responded to our call for feedback offering
valuable suggestions. Care has been taken to incorporate most of them thereby making the
book more valuable.

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TABLE OF CONTENTS
1 Access to individual information on internet (NCOMCONNECT) ................................. 5
2 Demat account opening ...................................................................................... 6
2.1 Type of Demat accounts ............................................................................... 6
2.2 Process of opening a Demat account. ............................................................. 6
3 Process of commodity deposit and credit in the Demat account ................................ 8
4 Process of revalidation of ISIN ........................................................................... 11
4.1 Concept of validity date and need for revalidation ......................................... 11
4.2 Rules and procedure for revalidation ............................................................ 11
4.3 Failure in revalidation ................................................................................ 12
5 Process of Remat of warehouse receipts ............................................................. 13
6 Charges .......................................................................................................... 15
7 Process of delivery at Exchange for Sellers Option, Compulsory Delivery, Intention
Matching & Staggered Delivery ................................................................................. 16
7.1 Submission of delivery request.................................................................... 16
7.2 Rejection of delivery request: ..................................................................... 17
7.3 Delivery matching ..................................................................................... 17
7.4 Query of delivery requests already submitted ............................................... 21
7.5 Reading delivery information files ................................................................ 21
7.6 Settlement calendar .................................................................................. 21
8 Shortages ....................................................................................................... 22
9 Process of delivery at the Depository .................................................................. 23
9.1 Quality and delivery lots ............................................................................. 23
9.2 Delivery process ........................................................................................ 23
9.3 Pay-in process at NSDL .............................................................................. 24
9.4 Pay-in process at CDSL .............................................................................. 24
10 Early Pay-in Process ...................................................................................... 25
10.1 Time of early pay-in................................................................................... 25
10.2 A)The applicable rules of the new Scheme are explained below: ...................... 25
10.3 Merits of early pay-in ................................................................................. 26
10.4 Early Pay-in process .................................................................................. 26
11 NCDEX Clearing Front End Software ................................................................ 28
12 Unique Client Code ....................................................................................... 29
13 Sales Tax Settlement Process ......................................................................... 30
13.1 Sales tax information and its significance ..................................................... 30
13.2 For Receiving Clearing Members .................................................................. 28
13.3 Invoice file on the Extranet ......................................................................... 29
13.4 Failure to submit information on time to Exchange and its implications ............ 30
13.5 Sales tax obligations .................................................................................. 31
13.6 NCDEX transactions are LST ....................................................................... 31
13.7 Implications of unregistered buyer & seller ................................................... 32
13.8 Payment of Mandi Tax ................................................................................ 34
13.9 Excise information and its significance ......................................................... 35
o Purchase tax ............................................................................................. 35
13.10 Customs duty and its significance ................................................................ 35
13.11 Registration for specific commodities ........................................................... 36
14 Customer Service Group ................................................................................... 37
14.1 Clearing & Settlement Schedule .................................................................. 35
14.2 Instructions for lodging complaint against Trading and Clearing Member of NCDEX
36
15 Annexures ....................................................................................................... 37
15.1 Proforma - Beneficiary Account Opening Form............................................... 37
15.2 Proforma - Member Pool Account Opening Form ............................................ 44
15.3 Proforma - Warehouse Acknowledgement ..................................................... 48
15.4 Proforma - Commodity Deposit Form ........................................................... 49

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 15.5 Proforma - Transaction Statement ............................................................... 51
15.6 Proforma - NCDEX Commodity Deposits - Revalidation Form........................... 52
15.7 Proforma - Physical Delivery Request Form / Remat Request Form .................. 53
15.8 Proforma - Settlement Calendar .................................................................. 57
15.9 Proforma - Account Transfer Form ............................................................... 59
15.10 Proforma - Delivery-Out Form ..................................................................... 63
15.11 Proforma - Letter from CMs for Opening of Early Pay-in A/c at CDSL ............... 64
15.12 (A) An illustration -Sequence of Events in Sales Tax Settlement ...................... 66
15.13 Proforma - Intersettlement Form ................................................................. 68
15.14 Proforma - Sales Tax Invoice ...................................................................... 68
15.15 Sampling Request Letter ............................................................................ 69
15.16 Bar number wise details of Silver for Delivery Pay-in and Pay-out.................... 69
15.17 On the letter head of Member ..................................................................... 73
15.18 Complaint against Trading and Clearing Members of NCDEX ........................... 75
15.19 Reduction of Exposure by the Member through NCFE ..................................... 76

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1 Access to individual information on internet (NCOMCONNECT)
‘Ncomconnect’ (https://www.ncomconnect.com) is a one point contact which brings all
entities like Investor, Warehouse, Assayer, Depository Participant and the Exchange
who are involved in the Physical Settlement process of Commodities on one common
platform. Exchange will be able to monitor the activities taken by various service
providers from the date of deposit and till the time the Members get demat credit. This
enables the Exchange to take corrective action immediately if the demat credit process
is held up at any stage.

It is mandatory for all individuals/members intending to deliver the commodities in the

Exchange accredited warehouse to send their requests through Ncomconnect. An entity
can avail of this facility after registration which is free of cost.

After registering with NCOMConnect one is allowed to exercise/view the following

functionalities:

a. Intimate warehouse for deposit of goods: This section provides the investor to give
intimation to the warehouse in advance for deposit of commodities. This helps the
warehouse to be prepared & results in saving of costly man-hours.
b. Holding reports: This section provides the investor to view his various kinds of
holdings. For the sake of convenience to the investor he is provided to view his holdings
DP wise, Commodity wise, Warehouse wise, his expired holdings and a summary of his
holdings. Subsequent sections will describe the process to view all the mentioned
reports.
c. Warehouse charges: This section provides the investor to view the various
warehouse charges that are applicable. To help the investor choose form a wide option,
this section provides details of charges levied by different warehouses. It also includes
viewing charges commodity wise.
d. Status reports: This section is to the investor to view the status of his application
based on the receipt number given by the warehouses. It includes applications that
have been either pending or rejected by the concerned parties.
e. Billing reports: This section will help the investor view his billing at a warehouse,
depository or commodity wise. It includes a summary report showing all the bills of an
investor. For a better clarity these repots have been distinguished into warehouse wise,
depository wise and commodity wise.
f. Withdrawal reports: This section is useful to the investor to view his/her remat
details. It includes a reports based on the RRN number and a remat summary report.
g. Request holdings by e-Mail: Here an investor is allowed to request details of his/her
holdings via e-mails. The user is required to select a Beneficiary account number and
the kind of report he/she intends to receive by e-mail.
h. Request billing statements & holding statements by e-Mail: This section of the
application holds forms where an investor is allowed to request his holdings and billing
statements by e-mails. These requests are automatically sent to the concerned party
and subsequent actions are performed by the recipient of these e-mails.
i. Contract specifications of commodities: This section contains contract
specifications of the entire commodities available with NCDEX exchange. The user is
advised to go through this section before he/she a contract with commodities.
j. Delivery ready recknor: This function is used by the investor to view delivery details
of a commodity. An investor is allowed to choose a commodity from a drop down box. A
delivery description report is generated based on the commodity chosen,

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2 Demat account opening
It is mandatory to open an electronic (Demat) account with both the depositories i.e.
National Securities Depository Limited (NSDL) and Central Depository Services (India)
Limited (CDSL) for taking delivery of commodities while trading through NCDEX system
since the pay-out may be received at either of the depositories and currently there is no
provision for Inter-depository transfers.
The Demat account is required to hold (at designated depository participants) the
commodity balances representing the commodities lying at the Exchange accredited
warehouses/vaults.

2.1 Type of Demat accounts

The following type of Demat accounts can be opened:
• Beneficiary account
• Pool account
Beneficiary Account
• A beneficiary account is a Demat account in the name of an Individual (single or
jointly). Such an account could also be in the name of a Corporate, a partnership
firm, a society and a trust. It is similar to a bank account.
• This account is to be used for transacting in commodity balances held by the
account holder at Exchange accredited warehouses. These commodity balances
would have been – in a physical process set up – represented through a warehouse
receipt.
Pool Account
• A Member pool account is a Demat account opened by Trading Members and / or
Clearing Members of NCDEX
• This account is opened to facilitate the pay-in and pay-out process.(explained in the
subsequent chapters)
A Member is required to open both the pool account (CDSL & NSDL) as well as a
beneficiary (CDSL & NSDL) account with each of the depositories.
Members are required to open the Demat pool accounts with both depositories and
intimate the details to the Membership Department of the Exchange within 15 days of the
activation of the membership, failing which Exchange shall levy penalty of Rs. 2,000/- per
day, payable every week, till the time Demat accounts are opened in both depositories.

The aforesaid penalty shall be in addition to the penalty prescribed for default in delivery, if
any. Members are requested to note that in the event of failure to deliver or receive a
particular delivery for want of Demat Account, will be treated as Default and provisions
with regards to Closing Out shall be initiated.

2.2 Process of opening a Demat account.

The beneficiary account holder or Member who wishes to open a Demat account should do
the following:
• Select a Depository Participant (DP) from the list of DPs empanelled by NCDEX
where he wishes to open the Demat account.
• The list of depository participants (DPs) who have been empanelled by NCDEX and
are authorized to open commodity Demat accounts for their participants are

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 available on the website i.e. www.ncdex.com on the home page under the heading
“Membership”.
• The Exchange keeps this list updated from time to time. In case of any difficulties in
opening the Demat account or any operational issues participants may contact
NCDEX customer service group at 022-66406608-6615 / 022-30616556-6558 or e-
mail at askus@ncdex.com
• The points to be considered while selecting a DP would be :
o Convenience: i.e. proximity to office/ residence.
o Service standards i.e.: Executing instructions and providing holding &
transaction statements on time.
o Proficiency i.e. Well versed with Commodity Exchange operations.
o Confidentiality and comfort level.
o Cost: i.e. service and transaction charges levied by the DP.
• Fill up the account opening form (sample beneficiary account opening form is shown
in Annexure 15.1 and sample member pool account opening form is shown in
Annexure 15.2 ) .This form can be obtained from the chosen DP.
• Submit the duly filled form to the DP along with the other requirements such as
proof of identity and proof of address
• Sign the agreement with the DP. This has to be executed on stamp paper according
to the stamp value prevailing in the state in which the agreement is being executed.
• The DP will open the client account and inform the client normally within a week’s
time.
• The Demat account can be operated by the holder / owner of the Demat account if
it is in single name or by joint holders if it is in joint names. The holders can give
instructions / power of attorney for Demat account operation. In case of corporates,
firms, societies, trusts etc. authorized officials will operate on the account. They will
have to submit the Board Resolution, Memorandum and Articles of Association, Bye
Laws, Trust Deed as the case may be and such other enabling documents as may
be required by the DP. Members who wish to open a CM Pool Account should submit
the following additional documents to the selected DP.
o Letter from NCDEX-NCCL regarding allocation of Clearing Member
Identification Number (CMID)
o Membership letter given by NCDEX.
• The DP will forward all the required documents to the Depository, which will
generate a CM BP ID for the Member and inform the DP.
• The DP will then activate the account and inform the Member.

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3 Process of commodity deposit and credit in the Demat account
• Deliveries on the Exchange platform are possible only in the electronic form.
• The client desirous of depositing commodities and holding the warehouse receipts in
an electronic form should arrange to move the commodities to a warehouse which
has been accredited by NCDEX. The list of all accredited warehouses by NCDEX
along with their contact details and indicative charges is given on web site
www.ncdex.com on the home page under the heading “Clearing Services--

Others”.
• The Exchange keeps this list updated for each commodity from time to time.
• Clients should contact the warehouse in advance for availability of space before
initiating any process for deposit and send the delivery schedules to the warehouse
in which he is intending to deposit through Ncomconnect.
• The client should get the assaying done for the quality of the commodities from the
assayer appointed by warehouse and approved by NCDEX. Their contact details are
provided on the Exchange website www.ncdex.com on the home page under the
heading “Clearing Services--
Others”.
• At the time of deposit, client has to give the CDF form duly filled up and signed to
the warehouse. (sample filled in form is shown in annexure 15.4)
• While filling up the CDF the client has to ensure the following:
Fill up all the details in the form i.e. name, commodity being deposited, quantity of
the commodity, details of the Demat account i.e. DP ID and Client Id.
• The quality of commodities being lodged into the Exchange accredited warehouses
has to conform to the specifications as given by NCDEX for the different
commodities (for further details please see the product notes on the NCDEX website
www.ncdex.com under “Products” section) Quality certification given by Approved
Assayer shall be considered final and binding on all the parties.
• Once the client deposits the commodities duly certified by the approved assayer at
the warehouse, the warehouse will issue a confirmation of receipt of commodity to
the client (format is shown in Annexure 15.3) .
Once the assayer gives a report of the quality of the commodities and this conforms
to the specifications as given by NCDEX, the client has to fill up the Commodity
Deposit Form (CDF). The assayer sends the copy of the report to the client ,
warehouses, Member & one copy will be retained for record purpose.
• The client will have to bear all the initial charges such as initial storage charges till
the date of Demat credit (being levied by warehouse for a minimum period of 7
days or as given on the Website as indicative warehouse charges),
loading/unloading charges, weighing, sampling charges etc. These charges will be
payable directly to the warehouse and after the credit is received in the Demat
account; the applicable DP charges will have to be paid to the DP. The applicable
warehouse charges will be collected via DP and paid to the warehouse on a monthly
basis. Client may please note that they have to make payment of all applicable
charges on time else penalty clause as determined by Exchange will be levied and
will be binding on all the clients.
• The warehouse will accept the commodities from the client and initiate the process
for credit of electronic balance into the client’s account.

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 The process of Demat credit
• On receipt of CDF from the client (Duly filled and signed) at the time of deposit,
warehouse enters the required details in Ncomconnect and a katcha receipt is
generated.
• The warehouse receipt number generated will be transmitted to the concerned
assayer for their confirmation of acceptance/rejection. If accepted, assayer enters
the grade and confirms.
• Subsequently the same is transmitted back to the warehouse for verification of the
data entered by the assayer with the hard copy of the report.
• After the warehouse finds the data entered in the warehouse receipt are correct, it
confirms the same.
• The details will be electronically transmitted to the depository i.e. NSDL/CDSL and
Registrar i.e. Karvy Consultants Ltd. The credit will be given to the depositors
account on the same day by NSDL/CDSL.
• The details will be verified at the Registrar and Depository end and on successful
verification the credit will be given in the Demat account of the client in the
appropriate ISIN. (Commodity Identification Number) on the same day and details
will be electronically transmitted to the depository participant.
• The client should check with its DP for the credit in its Demat account and also
request for a Holding/Transaction Statement which will reflect the balances in the
Demat account of the client.(sample Transaction Statement is shown in Annexure
15.5 ). Normally the gap between the time of deposit of the commodity at the
warehouse and the credit in the Demat account is expected to be within 7days; if
the Demat credit in the account with the DP is not reflected within this time frame,
the Exchange may please be informed immediately for corrective action. Kindly
contact NCDEX customer service group at 022-66406613-6615 or e-mail at
askus@ncdex.com
• The following are the important points to note in the Holding/Transaction Statement
received from the DP.
o Name of account holder
o ISIN Code
o Description of the commodity deposited
o Grade allotted
o Quantity as weighed in at the warehouse ( less allowance for spillage etc., if
any )
o Validity date
o Expiry date

The ISIN is the Commodity Identification Number by which each commodity along with its
specific details is uniquely represented. For demat balance associated with both the
Depositories (NSDL & CDSL), ISIN description will be
Warehouse/Commodity/Grade/Validity Date/ Expiry Date e.g. NCMSL/Jeera
/Jeera111/VD10NV05/ED 05JN06.
• The client has to check the grade allotted from the ISIN description in his holding
statement received from Depository and in case of any difficulty he should contact
the DP.

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 • If there is any discrepancy in the grade allocation as per the credit balance, the
client should immediately contact the warehouse.
• For the difference in grades of the commodities there are premiums and discounts,
hence the confirmation of the correct grade is critical.
• The client has to ensure that validity date as specified is after the settlement date in
which he intends to deliver this would enable him to deliver the commodity on the
Exchange on the settlement date for which he intends to deliver.

All commodities when deposited for the first time will have a final expiry date, which may
be different than validity date. The expiry date will be the period till which the commodity
can be revalidated. This is the maximum time the commodity can go for revalidations.
After this period the commodity needs to be compulsorily taken out of the warehouse.
However it should be noted that the expiry date is just an indicative date and there is no
mandatory requirement for the assayer to extend the validity even if it has not reached the
expiry date.
• Client should always check both validity date and final expiry date in the ISIN
before delivering the same on the Exchange platform.
• A ISIN which has valid FED but validity date is over, the same cannot be delivered
unless the validity date is extended by doing revalidation.
• Thus ISIN’s validity date and FED date should be beyond the expiry date of the
month in which the client intends to deliver.

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4 Process of revalidation of ISIN
4.1 Concept of validity date and need for revalidation
• All commodities, particularly agricultural commodities have a shelf life and cannot
be indefinitely stored.
• The concept of validity date has therefore been introduced wherein the NCDEX
approved quality testing agency for the respective commodity and warehouse,
provides a date known as validity date up to which the commodity stored in the
warehouse is expected to retain the properties / quality specifications confirmed at
the time of deposit at the warehouse.
• Information on the validity date can be obtained from the Holding statement issued
by the Depository participant.
4.2 Rules and procedure for revalidation
• Assaying can be done only by the designated Assayer appointed by warehouse and
approved by Exchange.
• Revalidation of a commodity is possible only in the Beneficiary account.
• Revalidation credit can be given only in the Demat account in which the commodity
under expired ISIN was held. Hence no revalidations can happen in pool account.
Revalidation can also not happen of balances on which a lien is created. The lien
needs to be lifted and only then it can be revalidated. The beneficiary holding the
commodities under expired ISIN will make a request to the relevant warehouse in
the prescribed form - NCDEX Commodity Deposits - Revalidation Form (sample
filled-in form is shown in Annexure 15.6).This form was provided vide NCDEX
Circular No: NCDEX/OPERATIONS –022/2004/186 dated December 10, 2004)
• The warehouse will acknowledge the receipt of revalidation request and allot a
revalidation request number. This number should always be quoted while enquiring
the status of revalidation. The warehouse will facilitate testing of the referred
quantity. The assaying, handling and other incidental charges for revalidation has to
be borne by the client holding the commodity balances; the charges for such
revalidation vary from commodity to commodity and indicative details are available
on the Exchange website www.ncdex.com on the home page under the heading
“Clearing Services--
Others”. After giving request for revalidation the Member
gets a warehouse receipt number. He can see the status of his request on
Ncomconnect after registration. A detailed note on Ncomconnect is given in Chapter
Number 13.
• The details will be electronically transmitted to the depository i.e. NSDL/CDSL and
Registrar i.e. Karvy Consultants Ltd. The credit will be given to the depositors
account on the same day in CDSL and the end of the next day by NSDL i.e it takes
two working days to get the revalidation credit in NSDL accounts. On successful
revalidation the credit will be given in the Demat account of the beneficiary client
with the new ISIN and the new validity date.
• Time period for updation under normal circumstances will not be exceeding 7 days

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4.3 Failure in revalidation
• If the assaying report fails to confirm the quality or the expiry date of the
commodity is over, the beneficiary client is informed by the warehouse and has to
take out the commodities from the warehouse.
• The beneficiary client makes a withdrawal request in the prescribed form (Physical
Delivery Request Form) to the Depository Participant (DP) with whom the Demat
account is being held and should follow the process for remat as explained in the
subsequent chapters.
• Such commodities in respect of which the approved assayers report fails to confirm
the quality specifications of the exchange or the expiry of the commodity is over,
shall not be considered as valid delivery for trades on the Exchange platform.

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5 Process of Remat of warehouse receipts
As and when the client wants to take the physical delivery of the commodities, he can do
so by making a request in prescribed form to the DP with whom he holds his Demat
account.
The Physical Delivery Request Form (also known as Remat Request Form or RRF) (sample
form is shown in Annexure 15.7) will be issued by the DPs to their clients. The steps
involved are as under:
(i) Client fills in the RRF and hands it over to the DP;
(ii) DP verifies the signature of the client and the qty mentioned in the form with the
holdings in the Demat account and keys-in the information to the DP module and
generates the Remat Request Number (RRN);
(iii) DP gives the acknowledgement copy of the RRF to the client and sends the
delivery instruction electronically to the warehouse through the Depository and
Registrar.
(iv) Client or his agent will have to call the warehouse informing them of the request
for delivery and requesting them to keep the delivery ready;
(v) Client or his agent approaches the warehouse along with following documents:
a) Original acknowledgement slip issued by the DP on which RRN number is
written;
b) Authority letter from the client authorizing the agent to take the physical
delivery on his behalf (if the client has appointed an agent to take the
delivery),
c) Proof of identity of the person taking the delivery establishing his
identity.
(vi) On receiving the above documents the warehouse will verify the authenticity with
the authorization in the system;
(vii) If the authentication is successful then they will give the physical delivery.
(viii) In CDSL the remat request number generated by the DP is captured on the same
day and in NSDL it is captured on the next day. Hence remat request can be
processed on the same day in case of CDSL & the next day for NSDL accounts.
In case the warehouse refuses to accept the instruction for delivery the beneficiary may
contact the NCDEX customer service group for assistance. The client should ensure that all
warehouse storage charges are paid before taking delivery.
Process for fractional deposits/withdrawal
It is possible that the client may have some odd lot quantities in their Demat account at
the time of deposits e.g.
Quantity deposited is 20.1 MT and quantity delivered: 20 MT
Balance: 0.1 MT.
Assuming pack size of 50 kg each, the warehouse will deliver 2 bags or pay the cash
equivalent of 0.1 MT at prevailing spot market price on the date of Remat Request.
For withdrawing the balance fractional quantities from the warehouse, the participants will
have to follow the physical delivery (Remat) request process as mentioned above.

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Process for mismatch in Remat request and physically delivered quantity

In case a Remat request generated is more/less than the actual quantity being delivered,
the difference will be settled in cash at the warehouse level.

Sampling before taking physical delivery

Members/Clients are allowed sampling of commodity stored in NCDEX accredited

warehouses before taking actual physical deliveries on submission of following documents
to the warehouse:-

1. Original Remat Request acknowledgement slip duly signed and stamped by the
holder’s Depository Participant (DP)
2. Authorization letter in favour of the representative taking the delivery
3. Proof of Identity of the authorized representative
4. Sampling Request Letter (annexure I) refer to Annexure 15.15

The warehouse shall facilitate identification and sampling from one of the identifiable lots
representing the ISIN for which the remat request has been submitted by the holder/
authorized representative. The party which draws the sample will have to compulsorily take
physical delivery within 2 working days from the date on which sample is drawn failing
which the warehouse will not be liable to make the delivery of the already identified lot
represented under the applicable ISIN. This facility can be exercised only once for each
remat request.

Outbound deliveries

It should be noted that due to inherent nature of agricultural commodities, instances of

occurrence of minor quantum of weevils, insects, fungus and moulds during storage in
spite of the best management process adopted by warehouse keepers cannot be ruled out.
Exchange clarifies to the market participants that presence of minor quantum of weevils,
insects, fungus and moulds in outbound deliveries would not be treated as bad delivery.

At the time of outbound delivery, goods if found infested with minor quantum of live
weevils, insects, fungus or moulds will be fumigated by the warehouse service providers at
their cost and delivery would be given in reasonable time frame to the buyer. In some
commodities there is a tolerance limit in quality parameters at the time of taking the goods
out of the warehouse as per the contract specifications. Such delivery would be treated as
good delivery in terms of settlement.

Once goods are moved out of the warehouse, no further claims/ complaints will be
entertained by the Exchange on account of quality/ quantity.

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6 Charges
• All charges which are incidental to the physical delivery are to be borne by the
recipient and paid upfront at the time of delivery. Charges till the time pay-in is
completed is to be borne by the depositor (seller) and after the pay-out is
completed, the charges have to be borne by the buyer.
• All charges and costs payable to the warehouse towards delivery of the commodity
including sampling, weighing, handling charges, initial storage charges etc upto
Demat credit (levied for the minimum holding period as decided by the Exchange)
from the date of receipt into designated warehouse upto the date of pay-in and
settlement shall be paid by the seller. The indicative charges and minimum billing
period is available on the site under the heading Settlement & Delivery. The charges
are payable by cash/ DD.
• Generally, the warehouse facilitates above activities, these are purely value added
services from the warehouse and as may be negotiated by the recipient with the
warehouse. Exchange does not accept any liability/responsibility towards these
activities.
• All charges and costs associated with delivery and including storage, handling etc
after the pay-out shall be borne by the buyer.
• Warehouse storage charges after credit is received in the Demat account will be
charged to the client by the respective DPs. Members and Constituents hereby
notified that if the goods are not moved out of the accredited warehouse by the end
of the month in which the Final Expiry Date (FED) falls, then the rates of warehouse
charges shall be two times that of the prescribed normal charges and shall be
levied from the first day of the month following of the month of FED.
• The Assayer charges for testing and quality certification should be paid to the
assayer directly at the delivery location by the client.

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7 Process of delivery at Exchange for Sellers Option, Compulsory Delivery,
Intention Matching & Staggered / Early Delivery
7.1 Submission of delivery request
• Members who wish to give / take delivery have to submit delivery requests to the
Exchange.
• Submission of delivery requests can be done within the stipulated period as
mentioned in the following paragraph.
Delivery marking for all contracts except compulsory delivery contract is completed
at least 5 trading days prior to expiry of the contract and the intentions are
collected during 3 days which is notified separately every month. Similarly, for all
International referenceable commodities marking of intention for delivery is
completed at least 3 trading days prior to the expiry of the contracts and the
intention is collected during 3 days which is again notified separately. Sellers having
open position as on the last day notified for marking delivery intention are required
to give their intention/notice, up to a maximum of their open position as at the end
of trading hours

Members are not allowed to square off their positions once delivery intentions are
submitted. A penalty is levied (presently 5%) of final settlement price on the position
squared off, on the Members violating this stipulation. Further, Members are not allowed
to create fresh positions during the last five days before the expiry of the contract except
in Crude Palm Oil (CRDPOLKDL) and in some international referenceable commodities
already notified vide circular no. NCDEX/RISK-007/2010/064 dated March 05, 2010

Members are advised, not to put through trade that violates this directive.
• The delivery request is submitted by the Clearing Member on the Trader workstation
by selecting the commodity on the Market Watch Screen and pressing the key
Control+ F4.
• The following details are to be entered:
o Buy/Sell indicator
o Quantity
o Client Code
o Location where delivery is to be given/received
o Dematerialized /Deposited in warehouse Flag (If the commodities have been
deposited in the accredited warehouse and/or credit has been received in the
Demat account of the client this flag has to be selected by the member )

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7.2 Rejection of delivery request:
The rejection of delivery requests will happen under the following circumstances:
• Non availability of open position to the extent of the delivery request. The request
will be valid only to the extent of the open position for the Member at client level in
the respective contract. Any additional delivery request will be rejected.
• The delivery request can also be rejected in case the warehouse capacity of the
commodity is exceeded or for such other reasons that the Exchange may deem fit.
7.3 Delivery matching
• Contracts with Seller’s right to deliver
Sell requests: A valid sell delivery request would result in delivery on the Exchange
for those contracts which have seller’s right to deliver
Buy Requests:
For contracts with seller’s right to deliver, delivery obligation would be created for
all valid sell requests received by the Exchange and allocation would be done to the
Buyers with open positions on a random basis whether or not the buy request has
been submitted. Such Buyers will be bound to take delivery.
However, while allocating the deliveries, preference would be given to those buyers
who have submitted buy requests.
• For contracts with compulsory delivery
All Sellers & Buyers with open position on expiry of the contract will have to
tender/receive delivery on the Exchange.
Delivery information
In order to allocate deliveries in the optimum location for clients, the Members will
give delivery information for preferred location.

a) Submission of delivery intention

Members should submit specific delivery requests for their clients for preferred
delivery centres (base location / additional delivery centres) by invoking the delivery
request window on the trading front-end.

b) Default location
Members who do not submit the preference of the default location, will be marked
delivery in the base location specified for the commodity.

Matching
Matching of preferred locations submitted by the buyer Members will be done to the
maximum possible extent.

If the Member does not give any delivery request for that expiry, the one-time
location preference given by the Member in the commodity will be considered while
matching.

In case of mismatches in locations between Sellers’ and Buyers’, the Sellers’ choice
of location will be given preference over the Buyers’ while allocating deliveries.

• Intention Matching Contracts

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 On expiry day Exchange matches buy & sell requests. Upon successful matching of
requests with respect to Commodity and warehouse location results in delivery on
settlement day.

• Staggered Delivery Contracts

For staggered delivery contracts the marking of intention to deliver the commodity
starts from one working day other than Saturday prior to last working day of the
calendar month prior to expiry date of the contract. Valid sell delivery intentions
marked would result in delivery on the next day for those commodities which are in
staggered delivery contracts. The marking of intention to deliver and the physical
settlement would be done on all days except Saturday, Sunday and / or a holiday at
the Exchange, clearing banks or any of the service providers. The specific dates
would be available in the settlement calendar issued on a monthly basis for
referrals.

The process followed in case of staggered delivery is explained in the following

Paragraphs.

Tender Period:

Tender period would start from one working day other than Saturday prior to the
last working day of the calendar month prior to expiry date of the contract.

Let us assume ‘Tender Date’ as T

Pay-in and Pay- Out will be on T+1 basis. If the tender date is T then, pay-in and
pay-out would happen on T + 1 day. If such a T + 1 day happens to be a Saturday,
a Sunday or a holiday at the Exchange, clearing banks or any of the service
providers, Pay-in and Pay-out would be effected on the next working day.

Due date/ Expiry date: The contract expires on the 3rd of the expiry month, If
3rd happens to be a Saturday or a holiday then the contract will expire on the
succeeding working day.

The settlement of contract would be by a staggered system of Pay-in and Pay-out

including the Last Pay- in and Pay-out which would be the Final Settlement of the
contract.

Upon expiry of the contracts all the outstanding open positions should result in
compulsory delivery.

The penalty structure for failure to meet delivery obligations by the sellers is as
follows:

Total amount of penalty = 3.0 % + the difference between the Final Settlement
Price (FSP) and the average of three highest of the last spot prices of 5 (five)
succeeding days after the expiry of contract (E+ 1 to E +5 days), if the average
spot price so determined is higher than FSP; else this component will be zero.

The 3.0 % penalty collected as mentioned above shall be used as follows:

a) 1.75 % component of the penalty shall be deposited in the Investor Protection
Fund of the Exchange;
b) 1 % component of the penalty shall go to the Buyer who was entitled to receive
delivery; and
c) Balance 0.25 % component of penalty shall be retained by the Exchange towards

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 administrative expenses.

Further, the difference between the FSP and the average spot price (as given
above) shall also go to the buyers. Please refer circular no. NCDEX/TRADING-
086/2008/216 dated September 16, 2008

The buyers under no circumstances can refuse delivery. If the buyer defaults,
penalty at the rate of 0.09% per day computed on the amount outstanding from the
day on which monies are due to be paid until the day all obligation including
shortfalls in deposits are fulfilled. (Subject to minimum of Rs 500 per instance)

During the Tender period, if any delivery is tendered by seller, the corresponding
buyer having open position and matched as per process put in place by the
Exchange, shall be bound to settle by taking delivery from the delivery centre where
the seller has delivered same.

Clearing and settlement of contracts will commence with the commencement of

Tender Period by compulsory delivery of each open position tendered by the seller
on T +1 to the corresponding buyer matched by the process put in place by the
Exchange. Upon the expiry of the contract all the outstanding open position should
result in compulsory delivery.

The Exchange has revised the physical settlement process i.e. commodity pay-in /
pay-out process for Silver 30 Kg (Symbol: SILVER) futures contract is as under:

1. The electronic credits of SILVER only in CDSL accounts will be accepted and
delivered in settlement of transactions on the Exchange.
2. The seller members giving delivery will be required to give specific bar number
wise quantity details of SILVER towards their respective pay-in obligation on
the settlement (commodity pay-in / pay-out) day to the Exchange. The
required information is to be submitted as per Annexure I refer format
15.16 latest by 10.00 a.m. on settlement day through fax. This will be in
addition to the instruction to be given by the seller client to the Depository
Participant for transfer of credit balances from their account to the clearing
member pool account.
3. The seller clients should ensure that the instructions to depository participants
towards commodity pay-in are given strictly according to the bar wise quantity
details provided to the Exchange as mentioned above.
4. The commodity pay-in will be completed based on the specific bar number wise
details provided by the seller member. In case the seller member does not
provide the required details, commodity will not be accepted by systems
towards pay-in and will result in delivery default thereby attracting applicable
delivery default penalties.
5. The buyer members shall be provided with bar number wise quantity details
along with the commodity pay-out by the Exchange. The buyer members are
further required to communicate the specific bar wise details to their respective
buying clients by way of issue of letters to individual clients with a copy to the
Exchange as per Annexure II refer format 15.16 on settlement day.
6. The remat requests should be accompanied with the specific bar number wise
quantity details and such requests will be processed at vault only according to
these details. In case the remat requests are not generated according to bar
weight, the same will not be processed at vault and will be rejected.
7. The members / clients should ensure that the remat requests for Silver are
given to depository participants according to specific bar weights of their demat
holding, e.g. if any participant has 2 bars of silver weighing 29.5 Kg and 31.5
Kg, the demat holding will show a balance of 61Kg and if remat request for

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 30Kg is given, it would be rejected by the vault. The remat requests should be
generated as per the specific bar weight i.e. 29.5 Kg / 31.5 Kg
8. Off market transfers will not be available for SILVER, only transfer from
beneficiary a/c to member pool a/c and vice versa will be possible.

(Refer circular No. NCDEX/CLEARING-021/2011/344 dated 25th November,2011).

Early Delivery

For Early delivery contracts, during the period from E-14 to E-1 prior to expiry,
Seller & Buyer having open position are required to give their intention/notice to
deliver to the extent of his open position. The delivery position would be arrived at
by the exchange based on the information to give/take delivery furnished by the
seller and buyer as per the process put in place by the exchange for effecting
physical delivery. If the intentions of the buyers/sellers match, then the respective
positions would be closed out by physical deliveries. If there is no delivery intention
matching between sellers and buyers, then such intentions will get automatically
extinguished at close of E-1 day. Intentions can be withdrawn during the course of
E-14 to E-1 day if they remain unmatched.

Upon expiry (i.e. E) of the contracts all the outstanding open positions should result
in compulsory delivery. That is, “upon expiry of the contracts, any seller with
open position shall give delivery of the commodity. The corresponding
buyer with open position as matched by the process put in place by the
Exchange shall be bound to settle by taking physical delivery. In the event
of default by seller to give delivery, such defaulting seller will be liable to
penalty as may be prescribed by the Exchange from time to time”.

The penalty structure for failure to meet delivery obligations will be as per circular
no. NCDEX/TRADING-086/2008/216 dated September 16, 2008

Tender Date -T

Tender period:

Tender period would be of 14 Calendar days during trading hours prior to the expiry
date of the contract.

Pay-in and Pay-out: on a T+2 basis. If the tender date is T then, pay-in and pay-
out would happen on T + 2 day. If such a T + 2 day happens to be a Saturday, a
Sunday or a holiday at the Exchange, clearing banks or any of the service providers,
Pay-in and Pay-out would be effected on the next working day.

During the period from E-14 to E-1, Seller & Buyer having open position are
required to give their intention/notice to deliver to the extent of his open position.
The delivery position would be arrived at by the exchange based on the information
to give/take delivery furnished by the seller and buyer as per the process put in
place by the exchange for effecting physical delivery. If the intention of the
buyers/sellers match, then the respective positions would be closed out by physical
deliveries. If there is no delivery intention matching between sellers and buyers,
then such intentions will get automatically extinguished at close of E-1 day.
Intentions can be withdrawn during the course of E-14 to E-1 day if they remain
unmatched.

Upon expiry (i.e E) of the contracts all the outstanding open positions should result
in compulsory delivery.

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 Expiry Date

20th day of the delivery month. If 20th happens to be a holiday, a Saturday or a

Sunday then the due date shall be the immediately preceding trading day of the
Exchange, which is other than a Saturday.

The settlement of contract would be by a early delivery system of a maximum of 15

Pay-ins and Pay-outs or less including the last Pay-in and Pay-out which would be
the Final Settlement of the contract.

Process of Sales Tax Settlement

Please refer to chapter 12 for the Sales Tax Settlement process. An Illustration for
the sequence of Events in Sales Tax Settlement is shown in Annexure 15.12 (B)

7.4 Query of delivery requests already submitted

• The delivery requests can be queried using the Ctrl+F4 key on the NCDEX trader
workstation. The list of delivery requests submitted for the current expiry period will
be displayed.
7.5 Reading delivery information files
• Members who have submitted delivery requests can obtain the status of the
requests and the delivery allocation if any with the following files
• RS03-Request Status Report
• AL02-Delivery Allocation Report
(Please refer Circular No: NCDEX/TRADING004/2003/015 dated December 24, 2003
for details)

7.6 Settlement calendar

The Settlement Calendar is issued by the Exchange to inform Members about the
schedule of various activities that are to be carried out for physical settlement of
different commodities. These activities are broadly classified as Commodities
settlement, Supplemental settlement for Premium/discounts as well as Closing outs
and Sales Tax settlement cycles.
A sample format of the Settlement Calendar is shown in Annexure 15.8.

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8 Shortages
Short Delivery
• Any shortage, which is above acceptable limit, is treated as short delivery.
• Acceptable limits are different for each commodity and are specified in the relevant
contracts e.g. for Silver (SILVER) acceptable limit is 10% whereas for Guar Seed
(GARSEDJDR) it is 2%. In case of such shortages, the settlement of short delivered
or over delivered portion is completed at the Final Settlement Price plus the
locational premium or discount applicable for that centre.

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9 Process of delivery at the Depository
9.1 Quality and delivery lots
• It is necessary for the market participants to deliver only one grade (i.e. one ISIN)
for each delivery lot in each Depository at the time of pay-in. e.g.
Quantity to be delivered: 20 MT
Minimum delivery lot: 10 MT
The participant will be able to deliver maximum of two grades (ISIN) lots of
10 MT each. He cannot deliver two ISINs for one delivery lot.
• If the market participant is not able to deliver as per the delivery lots then it would
be treated as Short Delivery.
• Members and their constituents should therefore ensure that the delivery of
commodities at the time of pay-in is only in deliverable lots under each ISIN to
ensure smooth settlement process.
9.2 Delivery process
• The client who wants to deliver the commodity should transfer the credit balances
from his account to the clearing Member pool account before the pay-in
(Settlement) date specified by the exchange by filling up the Account Transfer
Form (sample form is shown in Annexure 15.9 ) This form will be provided by the
DP.
• While filling up the Account Transfer Form the client should take care that all the
details as mentioned below have been correctly entered and all the holders have
signed the form.
o ISIN: This will be available from your Demat Holding/Transaction statement
o Quantity: This is the quantity mentioned against the commodity in your
Demat statement and should be less than or equal to the quantity you have
sold and mentioned in the statement.
o Execution Date: It is the date before the pay-in date on which the instruction
will be executed.
o Market Type and Settlement No. : This is made available in the circular
issued by the exchange and/ or from your broker.
o CM BP ID /CM Name: These details will be available from the respective
clearing members. The client should submit the form to the DP and take an
acknowledgement from the DP for the same.
• The DP will enter the instruction in its DP module and on the execution date the
balances will be transferred from the client account to the member pool account.
• The member also has to ensure that it has received all the deliveries from the
clients before the pay-in to the Exchange.
• On the pay-in day the balances will be delivered to the exchange and on pay-out
will be given to the buying brokers pool account. The procedure of normal and
early pay-in at NSDL/CDSL is mentioned in the subsequent chapters.

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The pay-in process at NSDL and CDSL along with the differences is explained below.
9.3 Pay-in process at NSDL
• To effect settlement pay-ins NSDL has adopted Instruction based approach. This
means that a Clearing Member (CM) needs to specifically instruct his DP to make a
delivery request known as “Delivery-out” instruction for a given Market Type-
Settlement Number combination before settlement date. This is similar to issuing a
cheque to transfer funds from one bank account to another. (sample form is shown
in Annexure 15.10 ) This form will be provided by the DP.
• CM needs to be sure of executing all delivery-out instructions before settlement
date so as to complete his obligation fully. Delivery-out instruction can be of 2 types
and it can be given any time before settlement date, they are: Irreversible delivery-
out and reversible delivery-out. Irreversible delivery-out is considered as confirmed
pay-in for a given settlement and cannot be reversed before settlement date
whereas delivery-out can be reversed anytime by a CM before execution date. The
payout process is done on Settlement day.
• If the commodity received in any settlement is not shifted to the Beneficiary
account and if they need to payin towards the next settlement then the Member
needs to give an intersettlement instruction to the DP for delivery on the Exchange
platform. (Refer to Annexure 15.13 for the format).

9.4 Pay-in process at CDSL

• The pay-in process at CDSL is different from NSDL. In CDSL, CM need not give a
delivery-out instruction to his DP, but he has to ensure that the balances are
available in the pool account at the time of pay-in otherwise it would be treated as
default.
• CM needs to communicate settlement date to all his clients so as to ensure that all
ISIN balances are moved to his CM Pool A/c before settlement date. If the balances
are not available in the CM Pool account at the time of pay-in it will be treated as
default.
• On a scheduled settlement date, CDSL will provide a balances file to NCDEX clearing
house (NCCL) having ISIN wise balances for each Clearing Member Pool Account
(CM-Pool A/c).
• NCCL based on settlement obligation of a given Clearing Member (CMID), will
generate a response to CDSL to affect transfers in NCDEX-NCCL Settlement account
from which credit will be given to respective buyers’ CM Pool A/c.
Thus, in NSDL a delivery-out instruction has to be submitted to the DP whereas in CDSL no
such instruction needs to be submitted and only the balances should be lying in the
members pool account.

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10 Early Pay-in Process

10.1 Time of early pay-in

At NCDEX, Early Pay-In (EPI) is permitted during the last 5 days prior to expiry till
the settlement date. For eg: If expiry is on 20th and settlement is on 22nd, members
and constituents can do early payin from 15th till 22nd of the month.

10.2 A) The applicable rules of the EPI Scheme are explained below:

i) ‘Early Pay-in’ of agri commodities prior to expiry will get exemption from the applicable pre-
expiry margins.
ii) For availing the exemption, Members may make ‘Early pay-in’ from one day prior to the day
when pre-expiry margins are applicable.
iii) The outstanding position would be exempt from the applicable pre-expiry margins
to the extent of Early pay-in made and after the Early pay-in information is
processed at the end of day. However all other margins viz. initial margins,
exposure margins, additional and special margins, unless otherwise specified, will
continue to be levied on these positions.
iv) The Early pay-ins’ received up to 4.30 p.m. on weekdays and up to 12.00 noon on
Saturday will only be processed for giving exemption from pre expiry margins for
next day.
v) Members should have open position in the commodity for which Early pay-in is
made.
vi) The Early pay-in should be made for a valid ISIN for the settlement.
vii) Mark To Market (MTM) settlement will continue be done for the outstanding
positions for which Early pay-in has been given before expiry.
viii) The pre-expiry margin shall be applied by the system in the normal course and the
benefit of exemption of pre-expiry margins will be extended by way of
corresponding increase (notional) in the collateral placed by the members.
ix) The said increase in collateral as per (viii) above shall be reversed at the expiry of
the contract for which Early pay-in has been made or in case position is squared off
in the contract. In no case it should be construed as additional collateral provided to
the Exchange and no collateral release request for the same shall be placed by
member.
x) In case the open position is squared off after doing an Early pay-in or delivery
allocation is from a different location than ISINs tendered in Early pay-in, the ISINs
delivered by the member will be returned to the member on respective Physical
Settlement pay-in / pay out day.
xi) Members are required to follow the process specified by the Exchange and adhere to
the conditions as specified in section D) below.

(Refer Circular No. NCDEX/CLEARING-003/2011/008 dated 6th January, 2011)

B) Processing of Early Pay-in Before Contract Expiry.

i) In case early pay-in is done by the Member and client information is
provided:
• The sell open position for the client shall be suitably reduced so that there is no
open position for margin purpose.

ii) In case client information is not provided, no margin benefit will be given.

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C) Processing of Early pay-in After Contract Expiry.
i) In case Early pay-in is done by the Member and client information is
provided:
If there is no delivery position for that client after contract expiry (i.e. client short
position is squared off or delivery request is not submitted) then the Early pay-in
ISIN will be handled in the following way.
• Early pay-in will not be processed for settlement.
• The ISIN will not be accepted as delivery towards settlement obligation and will
be returned to the member along with the settlement payout.
• If there is a shortage for the same Member in commodities pay-in for other
delivery positions in Gold and Silver, the Early pay-in ISIN will not be utilized for
the member’s delivery shortages and will be released back to the Member.

ii) In case of Early pay-in done by the Member and client information is not
provided:
• The Early pay-in processing shall be as per current practice i.e. the ISIN will be
utilized for Settlement obligation of the Member.

D) Process to be followed by Members

Members can effect an Early pay-in of Agri commodities in the following manner:
a. Early pay-in from NSDL demat accounts – Members to issue irreversible delivery out
(IDO) instructions from their CM pool account. The Early pay-in is to be made
towards a specific settlement as per the Settlement Calendar issued by the
Exchange from time to time.
b. Early pay-in from CDSL demat accounts – Members should transfer commodities to
Early pay-in account. The Early pay-in is to be made towards a specific settlement
as per the Settlement Calendar issued by the Exchange from time to time.
10.3 Merits of early pay-in
• One of the major benefits of Early Pay-In is that, on receipt of Early Pay-In, all
applicable margins collected towards physical settlements are released.
• It also saves the hassles of not able to deliver on time for a CM. As mentioned in
the pay-in processes above, at NSDL if delivery-out is not issued for a settlement,
delivery is not affected automatically and CM runs the risk of default due to non
delivery.
10.4 Early Pay-in process
The process of early pay-in is different at NSDL and CDSL as mentioned below:
• Availing the EPI facility through NSDL – A CM needs to give Irreversible
Delivery out instruction using the Delivery-Out Instruction Form for a given
Settlement in which the electronic balances is to be settled, through his DP. If a
reversible Delivery Out instruction is given, then this shall not be treated as early
pay-in.
• Availing the EPI facility through CDSL
• Members intending to do early payin must open an Early payin account with the
Depository. They need to get in touch with their DP’s for the same.
• The clearing Member who wants to make an early pay-in shall fill in the instruction
slip for early pay-in and deliver the same to his DP.
• The slip shall mention the early pay-in account of the Member as specified by NCCL.
The details required are NCCL ID, Source Account No., Settlement Information
(Type & Number), CM-ID, ISIN, Quantity and Early Pay-in Account No.

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 • Based on the instruction slip received by the DP, the DP shall enter the same in the
CDSL DP front end through the early pay-in screen in the settlement menu.
• Immediately on entry of the said instruction, the balances would be transferred
from the concerned account to the early pay-in account mentioned in the said
instruction.
• In case, there is insufficient balance, the said transfer will fail.
• Indication of wrong settlement type shall lead to delivery failure.
• Members can contact their respective DP's for further details.

The procedure for Opening CDSL early pay-in a/c:

• Member desirous of making an early pay-in through CDSL is required to provide a
letter to NCCL on its letter head in the specified format as given in Annexure 15.11)
• NCCL arranges to open individual accounts for each CM on the basis of application
received
• The early pay-in account number would be communicated to the Members, within 3
working days by NCCL
• Early pay-in should be only upto the working day prior to the scheduled settlement
pay-in day. In case any Member makes early pay-in on the scheduled day of pay-in
for the settlement, no margin benefit will accrue to the Member.
• The early pay-in by the CMs which are not utilized towards settlement obligations
would be returned to the CM by way of credit to their respective Clearing Accounts
with CDSL along with the payout in respect of that settlement.

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11 NCDEX Clearing Front End Software
• With a view to facilitate the submission of data to the Exchange, NCDEX Clearing
Front End Software (NCFE) has been developed. NCFE allows Members to carry out
the various activities in a convenient and user friendly manner.
• Members can access NCFE for the following activities.
o Unique Client Code - Maintenance of Client Code details & submission to the
Exchange,
o Daily clearing files – Loading of daily clearing data & viewing the information.
• NCFE was released by the Exchange on November 26, 2004. Using NCFE, a Member
can interact with Exchange in structured manner.
• Members can contact NCDEX Customer service group if they have not received the
CD-ROM for NCFE software. CD-ROM of NCFE contains detailed procedure for
installation and the manual on how to operate NCFE.
• The disabled members place orders by giving instructions to the Exchange for
closing out their positions on their behalf, through fax on the designated fax
numbers of the Market watch group of the Exchange.

To facilitate the members to send order entries, the Exchange has modified the
procedures for accepting such order entries. A new feature in the NCFE software
allows the members to input the order requests for squaring up their positions. The
squaring up order requests is uploaded into the extranet server in the specific
folder. On receipt of this file, the Marketwatch group of the Exchange initiates the
process for squaring up. The procedure for uploading the requests is given in the
Annexure 15.19.

However it should be noted that in such cases, the Exchange would not in any way
be liable for any change in market movements or prices or responsible for any
losses occurring to the Members and/or their clients.

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12 Unique Client Code
All members should allot and maintain the Client ID-Nos. along with personal details of
clients. They should also fill the ‘Know Your Client’ form stipulated by the Exchange.

With a view to strengthen the database of clients of its members a unique identity number
(UCC) is allotted to each client. All trading and clearing members should collect and
maintain in their back office information for each of their clients.

Members can collect copy of identity proof viz PAN Card, Passport, driving license or a copy
of Voter ID card for an individual. If partnership firm/companies is a client then the unique
registration number along with copy of PAN Card needs to be collected.

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13 Sales Tax Settlement Process
13.1 Sales tax information and its significance
• Any person offering a physical delivery on the Exchange platform should have
necessary registration with the local sales tax authorities in the state where the
delivery center is located or shall deliver through a settlement agent who has
necessary registration.
• However, in case of select commodities wherein exemption is available for the
purchasers from the payment of sales tax, to avail such exemption they also need
to have registration with local tax authorities or shall avail the services of the
settlement agent as stated above for settling their purchase transactions.
• In such a case the purchaser need to give details of such exemptions being availed
by them in requisite form and within the time specified failing which relevant tax is
levied.
• In case of Sellers who are empanelled under the composite scheme for Bullion in
that State, whereby they deposit a composite amount in lieu of tax on purchase and
sale of Bullion, such sellers are not entitled to recover Sales Tax at the time of sale
from their respective buyers.
General guidelines for receiving/delivering clearing members
• Receiving/Delivering Clearing Members should submit delivery information within
the stipulated period before the contract expiry through Trader Work Station.
• Exchange verifies and allocates delivery requests as per open positions of respective
Members as per process put in place by the Exchange.
• After matching, a report is provided to the Members for all the receipts
allocated/deliveries allocated against their delivery information.
• This is a Member specific report and is generated only for those Members who have
a delivery /receipt position. This report will be made available on the next morning
of Contract expiry date.
• In case of compulsory delivery contracts, all Members will have to deliver or receive
the goods as per their open positions on the expiry day depending on their choice of
delivery centre. They will receive a report of their obligation on the next morning of
Contract expiry date.
13.2 For Receiving Clearing Members
• Receiving clearing Members are required to send sales tax information along with
additional information including buying client details by 1500 Hours on next
working day after Commodities Settlement day as per Settlement Calendar.
• The data/information submitted by receiving clearing Members is processed for
accuracy and completeness.
• In event of a receiving member failing to provide sales tax information within
stipulated time, it is assumed that delivery is taken by member himself and
accordingly relevant information is provided to delivering members concerned and
the invoices will be raised in the name of the receiving Member. As no changes are
possible once the file is uploaded Members should ensure that correct details are
provided while uploading the file for Delivering Clearing Members
• Information submitted by the receiving clearing Members is provided to the
Delivering clearing Members seeking the sales tax information for each delivery
transaction. The buyer client details and sales tax information (viz. exemption form

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 numbers, if any) as provided in the report can be passed on by the Delivering
clearing Member to their Seller clients for generating invoices. Exchange shall
provide this report to Delivering clearing Members by the evening on next
working day after Commodities Settlement day as per Settlement Calendar. A
return file is generated and sent to the delivery clearing Members to inform the
status of sales tax reporting.
• The Delivering clearing Members are required to provide the information by 1500
Hours on or before 2nd working day (except Saturday) after the commodity
settlement day.
• Based on the sales tax information submitted by the Delivering clearing Member,
sales tax settlement obligation is determined. Sales tax settlement of funds shall be
completed by 11:00 am on 3rd working day after Commodities Settlement day as
per Settlement Calendar.
• In the event of delivering member failing to submit sales tax information, it is
assumed that there is no sales tax settlement to be carried out for deliveries made
by him.
• Delivering clearing Members are required to ensure that Sales Tax amount
submitted to the Exchange complies with applicable State Sales Tax laws. If a
Member needs to collect Sales Tax and/or Other charges and/or Resale Tax – they
need to submit a single amount for settlement purpose, however the Invoice sent to
Buyer shall have all different amounts indicated clearly.
• Seller clients shall generate and send the invoices through their members to Buyer
clients through their buying members within 5 working days after Sales Tax
settlement is completed. However if the Seller fails to deliver the invoice within the
specified time then he will be charged a penalty of Rs 5000.00 per month per buyer.
• As Illustration for the sequence of Events in Sales Tax Settlement is shown in
Annexure 15.12 (A)
The following details needs to be incorporated in the sales tax invoice given in Annexure
15.13. The sales tax invoice should clearly mention, besides other things-
• Delivery receipt no.
• Client name & address
• Trading member-id of the seller member and buyer member
• Whether Composite Tax scheme availed

To facilitate Members to upload the details related to Sales Tax, the Exchange facilitates
the upload of SL12 details in file format which is generated through back office software of
the Member (NCFE), through VSAT, Leased Line and Internet. The specific details for
upload are available on extranet “common” folder in “upload_settlement.doc” file. The said
file contains details of IP address and timings for upload, which is available to all members
over Extranet.
13.3 Invoice file on the Extranet
Invoice detail file named “INV” is generated on E+5 days and uploaded on the Seller
member’s Web Extranet. The purpose of the file is to benefit the corresponding buyer
member to get the accurate first hand details of the invoice/s made by the seller. The path
for the same is:

Web Extranet/Invoice Folder/DNLD

The Seller Member’s are expected to upload the invoice details. The details which needs to
be incorporated are:-
• Invoice Number.
• Invoice date.

Page 31 of 79
 • Dispatch date.
• Sales Tax Registration Number.

The file is made available to the seller member in the respective folder till E+12 working
days.

This information is then passed on to the corresponding buyer member on E+12 working
days onwards.

In case of failure to furnish the relevant invoice details it shall be deemed conclusively that
invoice/s are not passed on to the corresponding buyer and penalties as per our the
Exchange rules will be levied to the seller.

For further information Members should refer to the “Timelines” available on our website
www.ncdex.com under the head “Customer Services”
13.4 Failure to submit information on time to Exchange and its implications
• In case of those commodities wherein the final settlement price is excluding the
sales tax applicable on the transactions, the seller has an option to recover the sales
tax by giving the quantum of sales tax in the SL 12 file on the next day of the
settlement. (For details please refer Circular No: NCDEX/TRADING-022/2006/043,
NCDEX/CLEARING-008/2006/041 dated February 20, 2006 & NCDEX/CLEARING-
001/2008/002 dated January 04, 2008)If the seller fails to give these details or
informs lesser amount than the actual sales tax then the amount or short amount of
sales tax, as the case may be, cannot be recovered from the buyer. However, the
liability for the payment of sales tax to the authorities shall continue to be on the
seller irrespective of the amount he has collected from the buyer or not.
• Receiving or giving delivery of commodities through authorized agents is an
accepted practice in commodities markets. The Exchange also allows its Members to
settle their trades upon expiry of contracts through authorized agents.
• The terms and conditions as well as procedure for settling through Agents are as
given below:
1. The Constituents may appoint Agents on the terms and conditions as they
deem appropriate. The Constituents shall be responsible for the acts of their
Agents under the Rules, Bye Laws and Regulations of the Exchange.
2. The Constituents through their clearing Members must inform the Exchange
of their desire to complete the delivery through an Agent by 5 PM on next
working day after Expiry of Contracts.
3. The constituent intending to avail the services of an Agent will have to give
an authority letter to the Agent authorizing him to give or take, as the case
may be, the delivery of commodities on his behalf in accordance with the
process and procedure prescribed by the Exchange.
4. It will be the obligation of Members to obtain written confirmations from their
Constituents regarding giving/receiving delivery to the specific Agent/s
appointed by their Constituents.
5. The Agent so appointed should have opened commodity Demat account as
required under the Regulation for affecting delivery of commodities on the
Exchange platform and the Constituent will route his receipts/delivery only
through the Demat account of the Agent so appointed by him.
6. Invoice will be raised by and/or in the name of the Agent giving the details of
the Constituents for whom the invoice being issued/raised.

Page 32 of 79
 7. Sales tax and other statutory charges relating to the transactions will be
settled by and in the name of the Agent.
8. Members shall provide Sales Tax information for Agent instead of Constituent
and the same shall match as per the request submitted to the Exchange.
9. The delivery of commodities to the Agent and receipt of commodities from
the Agent, instead of respective Constituents, if proper in other respects,
shall be deemed to be a compliance of delivery obligation under the
Regulations.
• It is to be noted that such arrangements are exclusively between the Members,
their Constituents and the Agent. The Exchange merely permits settlement
obligations by giving/receiving delivery of commodities through the respective
Agents as communicated to the Exchange through Members. The Exchange is not
responsible for any disputes between the parties nor accepts any liabilities in
connection with these arrangements.
• Constituents availing the services of agents need to obtain a confirmation from such
agents to be appointed before the same is communicated to the Exchange.
• Before availing the service the Members and/or constituents need to comply with
the necessary documentation as may be suggested by such agents.
• The Members should provide the details of the agents, where appointed, in the sales
tax information files instead of details of constituents.
• Members should ensure that subsequent to the settlement the commodities are
transferred to the agents’ Demat accounts from the Members’ pool accounts.
Similarly, in the course of pay-in for the settlement the commodities will move to
the Members’ pool accounts from the agents’ Demat accounts.
The Members should ensure that:
• Necessary confirmation is received from the agents before the same is
communicated to the Exchange;
• The details of constituents are forwarded to the agents to facilitate settlement;
• Invoices and other relevant documents are issued within the period stipulated by
the Exchange;
13.5 Sales tax obligations
• The seller/selling Member needs to forward the invoice to the buying Member with
in 5 business days of the conclusion of the sales tax settlement (i.e. within 8
business days of the settlement date) and the buying Member expected to forward
the same to the buyer within next 2 business days.
• Similarly, if the buyer has availed exemption for payment of tax against the
declaration/exemption form he needs to forward the same to the seller within 5
business days of conclusion of sales tax settlement (i.e. within 8 business days of
the settlement date).
• In case of default the buyer/buying Member may formally approach the Exchange
for intervention for compliance by the parties.
13.6 NCDEX transactions are LST
• As per the settlement process the seller and the buyer are deemed to have given
and taken deliveries at the delivery center (i.e. warehouse accredited by the
Exchange) and the sales tax applicable in the State where the delivery center is
located is applicable in the absence of any inter state movement of commodities, it
is considered as a local sale and thus does not attract any CST.

Page 33 of 79
 • In case the buyer opts for moving the commodity to a place out side the sate of
delivery, the all necessary formalities are to be completed by the buyer on his own
including payment of additional tax.
13.7 Implications of unregistered buyer & seller
• As mentioned above unless the parties avail the services of a settlement agent any
delivery based transactions will have additional burden of sales tax on them.
• The purchase from an unregistered seller makes the buyer liable for payment of
sales tax. Therefore the Exchange does not allow an unregistered seller to make any
delivery-based transactions. In such cases, the seller needs to make good the losses
suffered by the buyer including the penalty levied by the sales tax authorities and
Exchange also may impose penalties.
• Similarly if the buyer is not registered or does not use settlement agent, he has to
pay the applicable sales tax and the sales tax paid on his purchase becomes
irrecoverable for him at the time of subsequent sales by him. In addition his
subsequent sale transaction will again attract the sales tax even if he makes a sale
of a commodity on which tax has been paid. Besides, such purchaser may be liable
to penalties under the State sales laws.

13.8 Payment of Mandi Tax

The member/client giving/taking physical deliveries in agricultural commodities are
required to be registered with the respective local Mandis under the applicable APMC law.

Non-furnishing of Mandi related documents

The Exchange receives queries regarding the non receipt of mandi tax paid
certificate/documents. Mandi’s across India have specified different procedures for
payment of these Mandi taxes and issuance of receipt for the same. The members and
their constituents giving/delivering should be conversant with relevant rules and be aware
of all the documents required under the respective enactments of Mandi authorities in the
physical settlement process. The members/clients are supposed to make payment of mandi
tax, if applicable, while depositing of goods in the warehouse and obtain the receipt /
certificate for the same. The said mandi paid receipt /certificate is required to be endorsed/
handed over to the next buying member/client along with other settlement related
documents like invoice.

Non-receipt of Mandi related documents

The Buyers should inform non receipt of any settlement related document including mandi
tax paid certificate/receipt to the Exchange within the specified timelines (i.e.: E+22 or 12th
of the following month in which the contract expired, whichever is later). If no such
information is received from the member/constituent who is entitled to receive such
documents, it is deemed that all the requisite information and documents have been
exchanged between the selling and the buying members.

Non furnishing of documents to the buyers are considered as violations of the Regulations
and directives of the Exchange. The penalties levied, in such cases are in addition to the
value of the Settlement documents required to be issued or given to the counter party. The
members, who are under obligation to deliver or issue such settlement documents, would
be liable to pay the value corresponding to the settlement related documents and such
value will be debited to them and passed on to the counterparty.

The above penalties levied by the Exchange would in no way be the substitute or be in lieu
of any action that the Mandi tax authorities may impose upon such members for not

Page 34 of 79
complying with the requirements of Mandi tax provisions of the respective States where
deliveries happen.
13.9 Excise information and its significance
• Any person offering physical delivery of commodities where Excise duty benefit
would be availed by the buyer should have necessary registration with the Excise
authorities under relevant provisions of Central Excise Act, 1944 in order to pass on
the CENVAT credit to the buyer.
As per prevailing laws on central excise, only the manufacturer, first stage dealer and
second stage dealer who are registered under the Act can charge or claim credit of
central excise paid by the manufacturer on such goods. This can be done by issuance of
Excise Invoice by the manufacturer or first stage dealer showing the amount of central
excise paid.

• In case where the price quoted for trades in such commodities on the Exchange is
exclusive of central excise:
1. Only manufacturers and first stage dealers registered under the Act will be able to
claim central excise amount from the subsequent buyer provided they are in a
position to pass on the CENVAT credit.
2. The buyer will have to be either first stage dealer or second stage dealer duly
registered under the Act in order to claim credit under CENVAT.
• Members or their constituents who have to give or take delivery must be registered
with the Central Excise authorities apart from being registered under Sales Tax/Value
Added Tax. The seller will issue his Excise Invoice to the buyer mentioning therein the
Excise credit passed to the buyer.
• In case where the price quoted for trades in such commodities on the Exchange is
inclusive of central excise:
In such a case where the Excise duty is not explicitly mentioned, it is assumed that the
price is inclusive of Excise duty and no supplementary settlement is done for the same.

o Purchase tax
Wherever Purchase tax is applicable concerned buyers will have to get themselves
registered and pay the purchase tax on his own. However, such Purchase tax can be
recovered in his subsequent sale on the NCDEX platform in cases where the final
settlement price excludes all taxes (on sales as well as on purchases), which he will
claim as other charges. In such a case, he will have to issue a tax paid invoice

13.10 Customs duty and its significance

Customs duty is payable on all imported commodities in addition to Countervailing duty
and the cess thereon is also applicable. All of these are to be paid simultaneously. If the
price quoted on the exchange is inclusive of customs duty and exclusive of
Countervailing Duty (CVD) and cess, the process as defined by the Exchange can take
place under following cases.

In case of Imported Commodity

1. If it is the buyer who is going to pay the Customs Duty:

In case of imported materials, they can be stored in the custom bonded warehouses,
wherein the customs duty, CVD and cess thereon can be paid at the time of moving out
the commodity from such warehouses. In such a case the seller pays the customs duty
and cess thereon to the buyer. Subsequently the buyer will have to take the goods
within the ISIN validity period and shall pay the custom duty, CVD and cess thereon. As
the Customs Duty is inclusive in the price, CD will be collected from the seller and given

Page 35 of 79
 to the buyer. The CD and the CVD will be paid by the buyer at the time of taking
physical delivery. This CD and CVD will be payable on the Landed Cost or the FSP,
whichever is higher.

2. If the seller pays the Customs Duty (CD):

The seller paying the customs duty will also have to discharge the liability for payment
of CVD. CD and CVD is payable simultaneously by the importer who files the Bill of
Entry. Such seller will have to issue the appropriate invoice to the buyer to enable him
to claim the credit for the CVD under the Cenvat Credit Rules. Similarly, the subsequent
first stage and second stage sellers will also be entitled to pass on the credit of the CVD
on their sales. However, for the purpose, such sellers will have to obtain registration at
the warehouse address in order to enable them to pass on the credit.

The requirements of this process would be: (i) registration of the sellers as well as
buyers at the warehouse address; and (ii) only first and second stage sellers can pass
on the credit and not any subsequent sellers.

The seller will be able to claim the amount paid towards CVD over and above the
quoted price only if the seller is able to pass on the CENVAT credit to the buyer under
the laws governing central excise irrespective of whether the buyer is entitled to claim
or not. In other words, only importers and first and second stage dealers registered
under the Act will be able to claim central excise amount to the extent of amount
specified in the Central Excise Invoice which will have to be handed over to the buyers.

13.11 Registration for specific commodities

In some commodities Members need to register themselves with certain agencies in
order to deal in those commodities. Such details regarding the commodities are
available in the respective product notes.

Page 36 of 79
14 Customer Service Group
In case of disputes the Members & their constituents should contact the CSG group
14.1 Clearing & Settlement Schedule
Demat request *
Revalidation request *
Remat request * *
Assayers certificate*
Monthly warehouse bill from
DPs
Receipt / payment of sales
tax amount
Issuance of Sales/Excise
invoices by sellers
Receipt of Sales/Excise
invoices by buyers
Reporting of non-receipt of
valid Sales/Excise invoices to
the Exchange
In the event of non-issuance
of settlement related
documents, debit of Sales tax
/ Excise / H forms amounts
Issuance of H-Forms
Reporting of non-receipt of H
Forms
Penalty for non-issuance of
settlement related documents
Training request
* Except cotton ** Subject to quantity & actual deliveries happening at warehouse
As per Annexure 15.17
Page 37 of 79
On submission of all documents to the warehouse and
payments to assayers, credit in beneficiary account within
7 days of fresh deposit
On submission of all documents to the warehouse and
payments to assayers, credit in beneficiary account within
7 days of revalidation request
Physical delivery within 2 days of tendering remat request
at the warehouse under normal circumstances
4 days of request and payment of assayers fees
By 10th of the subsequent month
On Sales tax Settlement date, on due submission of SL-
12 file to the Exchange
Sales Invoices should be issued & dispatched by the seller
to the buyer within 10 days of expiry of the contract ( E +
10) normally by End of month for contracts expiring on
20th of the month
The buyers would receive the sales invoices within 17
days of expiry (E + 17) - By 7 th of next month
Non-receipt of invoices or receipt of incomplete / invalid
invoices should be reported to the Exchange within 22
days of expiry (E + 22) by 12 th of next month
Sales tax / excise amount will be debited from the seller
member's settlement account and credited to the buyer
member's settlement account on the 25th day after expiry
of the contract (E+25), by 15 of next month
Within 60 days of the expiry of the contract to the seller -
2 months after expiry
If not received within 60 days of expiry, the same should
be reported to the Exchange within the next 5 days
Rs.5,000/= per instance per month of delay
Within 15 days of first time of activation
14.2 Instructions for lodging complaint against Trading and Clearing Member of NCDEX
All complaints must be addressed to the registered office as below:

The Customer Service Group

National Commodity & Derivatives Exchange Limited
1st Floor,Akruti Corporate Park,LBS Road,
Kanjur Marg (W)
Mumbai - 400 078
India.
Tel (+91-22) 66406789

Instructions for filling the client complaint form.

1. Please tick wherever applicable.

2. Fill up the complaint form and attach all relevant documents/enclosures. The same is to
be sent to the registered office of the Exchange.
3. Please furnish only photocopies of documentary evidences. Originals are not required to
be submitted with the complaint form.
4. Exchange will not be able to process incomplete forms or complaints not supported with
necessary details/documents.
5. In case you are not in a position to furnish any documentary evidence, please specify
the reason for the same.
6. In case of reminders/subsequent letters, kindly quote date and the reference number of
the letter sent by the Exchange for speedy redressal of your complaints.

List of enclosures required to be attached with complaint form:

1) Copies of contract note or sale/purchase note and bills issued by member pertaining to
the transaction under dispute.
2) Copy of proof of payment.
3) Copy of ledger accounts / statement of account.
4) Copies of bank statements showing details of payment, date, amount, etc. issued by
you in favor of the trading member.
5) Copies of letters/correspondence written to and reply if any, received from the member
in respect of your complaint.
6) Any other relevant documents.

Note:
1) Complaints in respect of deals executed on the Exchange through a Trading and
Clearing Member of NCDEX only would be taken up for redressal by the Exchange.
2) Complaints against Trading and Clearing Member of NCDEX will be taken up for
redressal only if accompanied by the relevant enclosures (documents) as mentioned
above.
All complaints are required to be lodged with the Exchange within 1 month from the date
when the dispute arose or deemed to have arisen. As per Annexure 15.18

Page 38 of 79
 15 Annexures

15.1 Proforma Beneficiary Account Opening Form

ANNEXURE J
Participant Name, Address & DP Id
(Pre-printed) APPLICATION FOR OPENING AN ACCOUNT
(For Individuals Only)
Client –Id
Date : (To be filled by Participant)
I/We request you to open a depository account in my/our name as per the following details:
(Please fill all the details in CAPITAL LETTERS only)
Type of Account
Ordinary Resident NRI-Repatriable
HUF NRI-Non-Repatriable Others (please
specify)

Sole/First Holder’s Details

Name (Mr./Ms.) RAJESH KUMAR

Name of PANKAJ KUMAR

Father/Husband
Local / Fortune Towers , Bandra Kurla Complex , Mumbai
Permanent
Address Pin Code 4 0 0 0 5 1
Correspondence Fortune Towers , Bandra Kurla Complex , Mumbai
Address
Pin Code
Telephone No. 12345678 Mobile 123456789 SMS facility Yes No
No. √
Fax Number 12345678 E-mail ID: rajeshkumar@yyyyyy.com
Occupation MAPIN 1 2 3 4 5 6 7 8 9
ID:
Other Holder Details
Second Holder NA
Name (Mr./Ms.)
Name of
Father/Husband
Address

Pin Code
Telephone No. Mobile SMS facility Yes No
No.
Fax Number E-mail ID:
Occupation MAPIN ID:
Third Holder NA
Name (Mr./Ms.)
Name of
Father/Husband
Address

Pin Code

Page 39 of 79
 Telephone No. Mobile SMS facility Yes No
No.
Fax Number E-mail ID:
Occupation MAPIN ID:

Address for Local / Permanant Address

communication /
Correspondence Address / Foreign Address
Corporate Benefits
(Default option is Local
Address)

Guardian Details (In case the Sole Holder is a minor)

Name (Mr./Ms.)

Relationship (if
any)
Address

Pin Code
Date of Birth
(of minor) D D M M Y Y Y Y

In Case of NRIs
Foreign Address

RBI Reference RBI Approval

No. Date D D M M Y Y Y Y

Bank Details
Bank Sub-type Savings Account √ Current Account

Bank Account 1234567890

No.
Bank Name ICICI Bank Ltd

Branch Address Bandra Kurla Complex, Mumbai

Pin Code 4 0 0 0 5 1
9-Digit Code Number of the Bank and branch 1 2 3 4 5 6 7 8 9
appearing on the MICR cheque issued by the
Bank

Financial Details
P.A.N. / G.I.R. No. IT Circle / Ward / District No.

Sole/First Holder

Second Holder

Page 40 of 79
 Third Holder
Guardian (In
case of minor)

Standing Instructions
I/We authorise you to receive credits automatically into my/our
account. Yes No

Account to be operated through Power of Attorney (PoA)

Yes No

Please attach recent passport size photographs in the space provided below:
Sole/First Holder Second Holder Third Holder

Signature Signature Signature

across across across
Photograph Photograph Photograph

Declaration
The rules and regulations of the Depository and Depository Participants pertaining to an account
which are in force now have been read by me/us and I/we have understood the same and I/we
agree to abide by and to be bound by the rules as are in force from time to time for such
accounts. I/We also declare that the particulars given by me/us are true to the best of my/our
knowledge as on the date of making such application. I/We further agree that any false /
misleading information given by me or suppression of any material fact will render my account
liable for termination and further action.

Name(s) of holder(s) Signature(s)

Sole/First
Holder
(Mr./Ms.)

Second Holder
(Mr./Ms.)

Third Holder
(Mr./Ms.)

Guardian (in
case of minor)
(Mr./Ms.)

Page 41 of 79
NOMINATION

I/We wish to make a nomination and do hereby nominate the following person in whom all rights and / or
amount payable in respect of securities held in the Depository by me / us in the said beneficiary owner
account shall vest in the event of my / our death.
Name of the Nominee
(Mr./Ms.)
Relationship with the
Applicant (if any)
Address of Nominee

Pin Code
Date of Birth Signature of
(in case of minor) Nominee
D D M M Y Y Y Y
Name of Guardian
(Mr./Ms.)
(in case Nominee is a
minor)
Address of Guardian

Pin Code
Signature of Guardian

Photograph Photograph
of Nominee of Guardian
(in case of minor)
Signature of
Nominee across Signature of
Photograph Guardian across
Photograph

Signature of two Witnesses

Name Address Signature with date
1.

2.

(To be signed by the applicant only in case of nomination)

Page 42 of 79
______________________________ ______________________________
_____________________________
(Sole/First Holder) (Second Holder)
(Third Holder)

Notes :
1. All communication shall be sent at the adress of the Sole/First holder only.
2. Thumb impressions and signatures other than English or Hindi or any of the other language
not contained in the 8th Schedule of the Constitution of India must be attested by a
Magistrate or a Notary Public or a Special Executive Magistrate.
3. As per NSDL Circular No. NSDL/PI/2004/1622 dated dated September 7, 2004 pursuant to
SEBI Circular No. MRD/DoP/Dep/Cir-29/2004 dated August 24, 2004 a copy of any one of
the following documents may be accepted as proof of identity / proof of address
(local/correspondence/foreign address as the case may be):
Proof of Identity: Passport, Voter ID Card, Driving license, PAN card with photograph, MAPIN
card, Identity card/document with applicant’s Photo, issued by a) Central/State Government
and its Departments, b) Statutory/Regulatory Authorities, c) Public Sector Undertakings, d)
Scheduled Commercial Banks, e) Public Financial Institutions, f) Colleges affiliated to
Universities, g) Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their
Members; and h) Credit cards/Debit cards issued by Banks.
Proof of Address: Ration card, Passport, Voter ID Card, Driving license, Bank passbook,
verified copies of Electricity bills (not more than two months old)/ Residence Telephone bills
(not more than two months old)/ Leave and License agreement / Agreement for sale, Self-
declaration by High Court & Supreme Court judges, giving the new address in respect of
their own accounts, Identity card/document with address, issued by a) Central/State
Government and its Departments, b) Statutory/Regulatory Authorities, c) Public Sector
Undertakings, d) Scheduled Commercial Banks, e) Public Financial Institutions, f) Colleges
affiliated to universities; and g) Professional Bodies such as ICAI, ICWAI, Bar Council etc., to
their Members.
Participants must verify the copy of the document with the original.
4. Instructions related to nomination, are as below:
I. The nomination can be made only by individuals holding beneficiary owner accounts on
their own behalf singly or jointly. Non- individuals including society, trust, body
corporate, partnership firm, karta of Hindu Undivided Family, holder of power of attorney
cannot nominate. If the account is held jointly all joint holders will sign the nomination
form.
II. A minor can be nominated. In that event, the name and address of the Guardian of the
minor nominee shall be provided by the beneficial owner.
III. The Nominee shall not be a trust, society, body corporate, partnership firm, karta
of Hindu Undivided Family or a power of Attorney holder. A non-resident Indian can be a
Nominee, subject to the exchange controls in force, from time to time.
IV. Nomination in respect of the beneficiary owner account stands rescinded upon
closure of the beneficiary owner account. Similarly, the nomination in respect of the
securities shall stand terminated upon transfer of the securities.
V. Transfer of securities in favour of a Nominee shall be valid discharge by the depository
against the legal heir.
VI. The cancellation of nomination can be made by individuals only holding
beneficiary owner accounts on their own behalf singly or jointly by the same persons who
made the original nomination. Non- individuals including society, trust, body corporate,

Page 43 of 79
 partnership firm, karta of Hindu Undivided Family, holder of power of attorney cannot
cancel the nomination. If the beneficiary owner account is held jointly, all joint holders
will sign the cancellation form.
VII.On cancellation of the nomination, the nomination shall stand rescinded and the
depository shall not be under any obligation to transfer the securities in favour of the
Nominee.
5. Strike off whichever is not applicable.

=========================================================
=============
Acknowledgement
Participant Name, Address & DP Id

Received the application from Mr/Ms___________________________ as the sole/first

holder alongwith _____________________________ and
_______________________________ as the second and third holders respectively for
opening of a depository account. Your Client Id will be intimated to you shortly. Please quote
the DP Id & Client Id allotted to you in all your future correspondence.

Date : _________________
Participant Stamp & Signature

15.2 Proforma Member Pool Account Opening Form

Depository Participant Name, Address & DP Id
(Pre-printed)
APPLICATION FOR OPENING AN ACCOUNT
(For Corporates/Clearing Members only)

Date :01.12.2004 Client -Id

(To be filled by Depository
Participant)

We request you to open a depository account in our name as per the following details:
(Please fill all the details in CAPITAL LETTERS only)
Type of Account

Body Corporate FI
Bank FII
Trust OCB
X Others (please specify)

Page 44 of 79
Client Details

Name of Corporate PQR Trading Pvt. Ltd.

(Sole/First Holder)

Registered Office Fortune Towers, Bandra-Kurla Complex, Mumbai

Address

Pin Code 4 0 0 0 5 1

Correspondence
Address (if different)

Pin Code

Telephone No. 12345678

Fax No. 12345678

Other Holder Details

Second Holder Name

Name of
Father/Husband

Address

Pin Code

Occupation

Third Holder Name

Page 45 of 79
 Name of
Father/Husband

Address

Pin Code

Occupation

In Case of FIIs/OCBs/Others (as may be applicable)

Foreign Address

RBI Reference
No.

RBI Approval
Date

SEBI Registration
No. (for FIIs)

Bank Details

Bank Account No. 123456

Bank Name ICICI Bank Ltd.

Branch Address Bandra-Kurla Complex

Pin Code 4 0 0 0 5 1

Page 46 of 79
 9-Digit Code Number of the Bank
and branch appearing on the
MICR cheque issued by the Bank

Financial Details

P.A.N. / G.I.R. No. IT Circle / Ward / District No.

Sole/First ABCDE1234G
Holder

Second Holder

Third Holder

Standing Instructions

We authorize you to receive credits  Yes  No

automatically into our account

Clearing Member Details (to be filled up by Clearing Members only)

Name of Stock Exchange NCDEX

Name of Clearing Corporation NCDEX

Clearing Member Id 123

SEBI Registration No. N/A

Trade Name PQR Trading Pvt. Ltd.

CM-BP-Id

Declaration
The rules and regulations of the Depository and Depository Participants pertaining to an
account which are in force now have been read by us and we have understood the same and
we agree to abide by and to be bound by the rules as are in force from time to time for such
accounts. We also declare that the particulars given by us are true to the best of our
knowledge as on the date of making such application. We further agree that any false /
misleading information given by us or suppression of any material fact will render our
account liable for termination and further action.

Page 47 of 79
Authorized Signatories (Enclose a Board Resolution for Authorized Signatories)

Sole/First Holder Name Signature(s)

First Signatory Kumar Rajesh Kumar R

Second Signatory

Third Signatory

Other Holders

Second Holder

Third Holder

Mode of Operation for Sole/First Holder (In case of joint holdings, all the holders must
sign)
 Any one singly
 Jointly by
_____________________________________________________________________
 As per resolution
_______________________________________________________________
 Others (please specify)
___________________________________________________________
Notes:
1. The names of the account holders should be exactly in the same order as mentioned on
the certificates to be dematerialized.
2. In case of additional signatures, separate annexures should be attached to the
application form.
3. Thumb impressions and signatures other than English or Hindi or any of the other
languages not contained in the 8th Schedule of the Constitution of India must be
attested by a Magistrate or a Notary Public or a Special Executive Magistrate.
4. Strike off whichever is not applicable.

Page 48 of 79
===================================================Acknowled
gement
Depository Participant Name, Address & DP Id

Accepted/Rejected the application from M/s PQR Trading Pvt. Ltd. as the sole/first holder
along with _____________________________ and _______________________________
as the second and third holders respectively for opening of a depository account. Your Client
Id/CM-BP-Id (in case of Clearing Members) will be intimated to you shortly on acceptance.
Please quote the DP Id & Client Id allotted to you (CM-BP-Id in case of Clearing Members) in
all your future correspondence.
Date: 01.12.2004
Depository Participant Stamp & Signature

Page 49 of 79
 15.3 Format of Warehouse Acknowledgement
Confirmation of receipt of commodities at the warehouse

Name and address

of the warehouse: ___________________________________________
(Warehouse stamp)

Received from M/s. __________________________________________________

commodities as detailed below subject to verification of quality towards issuance of
Demat credit.

Commodity
description:

Net weight
(MT)
Truck No. No. of bags Remarks

This confirmation shall be treated only as an acknowledgement of receipt by the

warehouse and cannot be treated as a warehouse receipt for the purpose of transfer
and/or borrowing etc.
We confirm that the commodities received by us as stated above are covered under
the insurance policy taken by us for the storage of commodities at our warehouse;
The warehouse shall confirm to the depositories the above receipt only on
confirmation of quality by the approved assayers of National Commodity &
Derivatives Exchange Ltd.

For and on behalf of:

Warehouse name:
Authorized signatory
Date:
Time:

Page 50 of 79
15.4 Proforma of Commodity Deposit Form
15.4.1.1 Sr. No.
15.4.1.2 Commodity Deposit Form
15.4.1.3 (To be filled in by the depositor)
15.4.1.4 Date of Deposit: 10.12.2004_______ Time of
Deposit: 11 am

Name and location of the XYZ,JODHPUR

warehouse

Name of the Depositor Rajesh Kumar

Address of the depositor Jodhpur

For the account of Rajesh Kumar

(beneficiary name)

15.4.1.4.1 Cli 15.4.1.4.2 Client Name

ent Id

1 0 0 0 0 0 0 1 Rajesh Kumar
Details of commodity
Demat account to be 15.4.1.4.3 DP 15.4.1.4.4 DP Name
credited with Id

I N 3 0 0 X X X Xyz Ltd.

15.4.1.4.4.1 Details of commodities deposited

Details of commodities Qty. in Metric No. of bags 15.4.1.4.4.1.1 Re

being deposited tones / Kgs. / / units/ marks, if
(Net weight any
accepted inside lots
the warehouse) /Packages
(for grains)

GUAR 10 MT 100

Page 51 of 79
I/we hereby declare that the commodities being deposited herein belong to the
beneficiary as stated above and are free from any encumbrances. I/we hereby
request the warehouse to accept the deposit of the commodities and credit the same
to the account of the beneficiary stated above subject to approval by the assayers..
RKUMAR
Signature of the depositor

Acknowledgment from the warehouse

Name of the warehouse ________________________________

We hereby acknowledge the receipt of (Quantity) __________ (Unit) __________ of

______________________ (commodity details) of _______________ grade
specifications from ________________________________ (Name of the depositor)
to be credited for the commodity Demat account of
bearing Client Id: _______________ and DP id: __________________ on
______________ at _________ am/pm.

Authorized Signature(s) Seal

Page 52 of 79
15.5 Proforma Transaction Statement
Depository Participant’s Name [DP Id: IN300XXX]
DP Address: Fortune Park, Bandra Kurla Complex, Mumbai 400051 Date: 31.12.2004

Transactions From Date : 01.12.2004 To Date :31.12.2004

Client Id 10000001 Category Beneficiary Status Active

Name(s) of Rajesh Kumar

holders

Address Fortune Towers, Bandra Kurla Complex, Mumbai 400051

Pin Code 400051

ISIN INC000002013 ISIN Description NCDEX KERALA

ST.WAREHOUSING
CORP KOCHI
PPRMLGKOC PEPPER
METRIC TON 15JN05
MALABAR GAR

Transaction Type

Date Transaction No Description Credit Debit Balance

Opening 10
balance

05.12.2005 555555 10
By Corporate Action
Closing
20
balance

Depository Participant’s Seal & Initials

Page 53 of 79
 15.6 Proforma of NCDEX Commodity Deposits - Revalidation Form
We hereby request you to arrange for the re-validation of the commodity deposit
held by us under following details:

Warehouse Name XYZ, JODHPUR

DPID IN300XXX

Client ID 10000001

ISIN IN0000000156 Expired on 15.12.2004

Commodity name GUAR GUM

Grade 1111

Qty in units (MT) 5

Assayer Ref No. and

remarks
(to be filled in by
warehouse after re-
testing)

Signature of beneficiary/ies: 1. Rajesh Kumar

2._________________________________
Date: 20.12.2004
(The beneficiary who wants to re-validate the commodity shall contact the assayer
for testing the commodity in consultation with the warehouse. All costs/charges
/expenses etc. in this connection shall be borne by the beneficiary/ies themselves.
Please note that the credit will be given to the same Client Id/ DP Id combination for
which re-validation request is received.)
-----------------------------------------------------------------------------------------------
-------------
Warehouse Acknowledgement
Received request for re-validation of the commodity Guar Gum for 5 MT held under
ISIN code IN0000000156 credited in client Id: 10000001 with DP Id IN300XXX.
Authorized signatory:
Warehouse Name: XYZ
Date: 20.12.2004

Page 54 of 79
15.7 Proforma of Physical Delivery Request Form / Remat Request Form
Depository Participant’s Name, Address & DP Id
(Pre-printed)
PHYSICAL DELIVERY REQUEST FORM / REMAT REQUEST FORM (RRF)

(For commodities/metals)
Request No. ___________
(to be filled by DP)
Serial No. _________
(Pre-printed)
Date: 10.12.2004
I/We intend to receive physical delivery of the below mentioned commodities/metals
and authorize that my/our account be debited by the quantity of commodities/metals
mentioned below for this purpose. I/We declare that the below mentioned person (s)
are the beneficial owners of the commodities/metals mentioned.

Account No. 1 0 0 0 0 0 0 1

Account Holder Name Rajesh Kumar

Name of Guar Gum

commodity/metal

C-Id I N 0 0 0 0 0 0 1 0 5 6

Unit of Measurement Metric Ton

Quantity to be delivered 1 0 .
(in figures)

(in words) Ten Only

(Integer)
(And decimal)

Signature(s)
First/Sole Holder RKUMAR
Second Holder
Third Holder

Page 55 of 79
Participant Authorization
Received the above mentioned request for physical delivery of the
commodities/metals from the account holder mentioned above.
The application form is verified with the details of the beneficial owner’s account and
certified that the application form is in order. The account has sufficient balances to
accept the request for physical delivery. It is also certified that the beneficial
owner(s) signature(s) is/are verified and found in order. The other details of the
beneficial owners (Client Master Report), as extracted from the records, are
enclosed.
Forwarded by : Name of the executive

Signature (Seal)

Acknowledgment

Depository Participant’s Name, Address & DP Id

(Pre-printed)
Serial No. _________
(Pre-printed)
We hereby acknowledge the receipt of request for physical delivery for
_______10________ (quantity) ________MT____ (unit of measurement) of
_______Guar _Gum_____________ (commodity/metal) from Rajesh Kumar (Name)
having Account No. 10000001.

Participant's Signature (Seal)

Date:

Page 56 of 79
 15.8 Format of Settlement Calendar

A Format of settlement calendar is given below .The Settlement Type for every
commodity is to be noted using the key give below:-

The Exchange announces the following settlement calendars for contracts that are to
expire during the month of January 2009

A. Settlement Calendar and timelines for submission of delivery Intentions for all
Contracts expiring in April 2012 & Bullion contract expiring on May 03, 2012

Trading and Clearing Members of the Exchange are informed that the Settlement
Calendar and timelines for submission of delivery intention for the contracts due to
expire in the month of April 2012 & Bullion contract expiring on May 03, 2012 would
be as follows:

Please note the Settlement Type for every commodity using the Key given in Para 1
below where the commodities are classified on the basis of delivery logic and
settlement type.

1. Key

Settlement Type Symbol Expiry Tender / Delivery

Date Intention Marking
Delivery Physical Premium Sales Tax Start Date End date
Logic Settlement /Discount Settlement
Settlement
and Close
Out
Early PPRMLGKOC 20-Apr-12 07-Apr-12 20-Apr-12
Delivery G A B RBRRS4KOC 20-Apr-12 07-Apr-12 20-Apr-12
Contracts STEELLONG 20-Apr-12 07-Apr-12 20-Apr-12

BARLEYJPR 20-Apr-12 18-Apr-12 20-Apr-12

CASTORSEED 20-Apr-12 18-Apr-12 20-Apr-12
CHARJDDEL 20-Apr-12 18-Apr-12 20-Apr-12
CHLL334GTR 20-Apr-12 18-Apr-12 20-Apr-12
COCUDAKL 20-Apr-12 18-Apr-12 20-Apr-12
DHANIYA 20-Apr-12 18-Apr-12 20-Apr-12
Compulsory GOLD100AHM 20-Apr-12 18-Apr-12 20-Apr-12
Delivery G A B JEERAUNJHA 20-Apr-12 18-Apr-12 20-Apr-12
Contracts MAIZE 20-Apr-12 18-Apr-12 20-Apr-12
POTATO 20-Apr-12 18-Apr-12 20-Apr-12
PVC 20-Apr-12 18-Apr-12 20-Apr-12
RMSEED 20-Apr-12 18-Apr-12 20-Apr-12
SUGARM200 20-Apr-12 18-Apr-12 20-Apr-12
TMCFGRNZM 20-Apr-12 18-Apr-12 20-Apr-12
WHTSMQDELI 20-Apr-12 18-Apr-12 20-Apr-12
Intention G A B BRENTCRUDE 13-Apr-12 07-Apr-12 10-Apr-12

Page 57 of 79
 Matching CRUDEOIL 19-Apr-12 12-Apr-12 16-Apr-12
Contracts SILVER5AHM 20-Apr-12 11-Apr-12 13-Apr-12
SYOREFIDR 20-Apr-12 11-Apr-12 13-Apr-12
SILVERINTL 27-Apr-12 21-Apr-12 24-Apr-12
RBDPALMOLN 30-Apr-12 21-Apr-12 24-Apr-12
SHANKRKPAS 30-Apr-12 21-Apr-12 24-Apr-12

Sellers SYBEANIDR 20-Apr-12 11-Apr-12 13-Apr-12

Option K A B COPPER 30-Apr-12 24-Apr-12 26-Apr-12
Contracts
KAPASSRNR 30-Apr-12 21-Apr-12 24-Apr-12

Staggered
Delivery N A B SILVER 03-May-12 27-Apr-12 03-May-12
Contracts

2. Settlement Calendar
Physical Settlement Premium Discount & Close Sales Tax Settlement
Out Settlement

Tender / STL NSDL STL No. Delivery STL STL No. Funds STL STL No. Funds
Expiry Type Market and Funds Type Pay-in and Type Pay-in and
Date Type Pay-in and Pay-out Pay-out
Pay-out
07-Apr-12 G T+2 2012044 10-Apr-12 A 2012045 10-Apr-12 B 2012045 13-Apr-12
09-Apr-12 G T+2 2012045 11-Apr-12 A 2012046 11-Apr-12 B 2012046 16-Apr-12
10-Apr-12 G T+2 2012046 12-Apr-12 A 2012047 12-Apr-12 B 2012047 17-Apr-12
11-Apr-12 G T+2 2012047 13-Apr-12 A 2012048 13-Apr-12 B 2012048 18-Apr-12
12-Apr-12 G T+2 2012048 16-Apr-12 A 2012049 16-Apr-12 B 2012049 19-Apr-12
13-Apr-12 G T+2 2012049 17-Apr-12 A 2012050 17-Apr-12 B 2012050 20-Apr-12
16-Apr-12 G T+2 2012050 18-Apr-12 A 2012051 18-Apr-12 B 2012051 23-Apr-12
17-Apr-12 G T+2 2012051 19-Apr-12 A 2012052 19-Apr-12 B 2012052 24-Apr-12
18-Apr-12 G T+2 2012052 20-Apr-12 A 2012053 20-Apr-12 B 2012053 25-Apr-12
19-Apr-12 G T+2 2012053 23-Apr-12 A 2012054 23-Apr-12 B 2012054 26-Apr-12
20-Apr-12 G T+2 2012054 24-Apr-12 A 2012055 24-Apr-12 B 2012055 27-Apr-12
28-Apr-12 G T+2 2012055 02-May-12 A 2012056 02-May-12 B 2012056 07-May-12
30-Apr-12 G T+2 2012056 03-May-12 A 2012057 03-May-12 B 2012057 08-May-12

20-Apr-12 K T+2 SO 2012007 24-Apr-12 A 2012055 24-Apr-12 B 2012055 27-Apr-12

30-Apr-12 K T+2 SO 2012008 03-May-12 A 2012057 03-May-12 B 2012057 08-May-12
01-May-12 K T+2 SO 2012009 03-May-12 A 2012057 03-May-12 B 2012057 08-May-12

27-Apr-12 N T+1 2012014 30-Apr-12 A 2012058 30-Apr-12 B 2012058 04-May-12

30-Apr-12 N T+1 2012015 02-May-12 A 2012056 02-May-12 B 2012056 07-May-12
02-May-12 N T+1 2012016 03-May-12 A 2012057 03-May-12 B 2012057 08-May-12
03-May-12 N T+1 2012017 04-May-12 A 2012059 04-May-12 B 2012059 09-May-12

Page 58 of 79
Notes:
1. In case of contracts under Early delivery and Staggered delivery mechanism, the
contract will be settled by Compulsory delivery on the expiry of contract.

2. For contracts under Early delivery and Staggered delivery, the Settlement no.
corresponding to Tender date (when delivery intention is marked) mentioned at
para 2 is to be used.

3. For some internationally referenceable commodities, the Final Settlement Price

(FSP) is declared at a later date than the expiry date. For such contracts, the
reference date for determining Settlement no. in table given at para 2 is to be
taken as the FSP declaration date. The list along with details for such contracts is
as below:
Tender / Expiry Date Symbol FSP declaration date

13-Apr-12 BRENTCRUDE 16-Apr-12

19-Apr-12 CRUDEOIL 20-Apr-12
27-Apr-12 SILVERINTL 28-Apr-12
30-Apr-12 COPPER 01-May-12

4. The intentions in all commodities can be given up to one & half hour after the
close of trading in respective contracts (not beyond trading hours i.e. 11.30 /
11.55 p.m.) on the last day of marking delivery intention (up to trading hours on
other days during the period for marking delivery intention). E.g. if trading in any
contract closes at 5.00 p.m. on the last day of marking delivery intention, the
delivery intentions can be marked up to 6.30 p.m. However, if any day of
marking delivery intention occurs on a Saturday, the delivery intention window
for all commodities will be open up to the trading hours only.

5. Sellers having open position as on the last day notified for marking delivery
intention are required to give their intention/notice, up to a maximum of their
open position as at the end of trading hours on the stipulated dates as per the
table given at para 1.

6. Members giving delivery requests for the Sellers Option and Intention Matching
contracts are not permitted to square off their open positions subsequently. A
penalty of 5% of final settlement price on the position squared off, if any, will be
levied besides any further action as deemed fit by the Exchange.

7. Members are not allowed to create fresh positions in Sellers Option and Intention
Matching contracts during the last five days of the expiry of the contract except
in some international referencable commodities already notified vide circular no.
NCDEX/RISK-007/2010/064 dated March 05, 2010, failing which penalty would
be levied as prescribed by the Exchange, besides any further action as deemed fit
by the Exchange.

Page 59 of 79
8. For contracts under Early Delivery logic please refer circular no.
NCDEX/CLEARING-004/2009/022 dated January 19, 2009 and
NCDEX/CLEARING-026/2010/266 dated October 26, 2010 for further details.

9. In case of two settlements on the same day, the timings for the pay in of
commodities would be at 12.00 noon and 2.30 pm respectively. The timings of
Pay out of commodities would be at 12.30 pm and 3.00 pm respectively. Funds
pay in – pay out would happen at 12.00 noon and 3.00 pm respectively.

Page 60 of 79
 15.9 Proforma of Account Transfer Form
Depository Participant Name, Address & DP Id
(Pre-printed) DELIVERY INSTRUCTIONS BY CLIENTS

Serial No. (Pre-printed)

Client Id ( Pre-stamped)
Date:27.12.2004
I/We hereby request you to debit my /our account as per the following details

For Market Trades (Receiver Details)

CM-BP- CM Name Marke Settle ISIN Security Name Quanti Quantity I

Id t Type ment ty n
No. (In Words) be
(In DP
Figures)

IN1234 PQR Trading XX 20040 INC00000201 NCDEX KERALA 10 Ten Only

56 07 3 ST.WAREHOUSIN
G CORP KOCHI
PPRMLGKOC
PEPPER METRIC
TON 15JN05
MALABAR GAR

For Off-Market Trades (Receiver Details) N/A

DP Id DP Name Client ID ISIN Security Quantity Quantity

Name
(In (In
Figures) Words)

Execution Date (dd-mm-yyyy) 2 7 1 2 2 0 0 4

Page 61 of 79
 No. of Instructions
(in figure) ______________ 1____RKUMA
___ 2______
Depository Participant Stamp, Date & Time (in words) 3_________
______________________________
__ Authorized
Signatory(ies

Instructions:
1. To be submitted in duplicate for acknowledgement.

2. In case of joint holdings, all joint holders must sign.

3. Please strike off unused rows.

Page 62 of 79
 15.10 Proforma of Delivery-Out Form
Depository Participant Name, Address & DP Id
(Pre-printed) DELIVERY-OUT INSTRUCTIONS BY CLEARING MEMBERS FOR PAY-IN

Serial No. (Pre-printed) Date:28.12.2004 Date : ___________________

Client Id (Pre-Stamped) 10000002

I/We request you to debit my/our CM account as per the following details:

Name of Clearing Corporation NCDEX

Instruction Type ❏ X Reversible ❏ Irreversible (Please tick in only one of the boxes as may be app

ISIN Security Name Quantity Quantity Instruction No.

(In Figures)(In Words) ( To be filled by DP)

INC000002013 NCDEX KERALA ST.WAREHOUSING CORP 10

KOCHI Ten Only
PPRMLGKOC PEPPER METRIC TON 15JN05
MALABAR GAR

Market XX Settlement No.: 2 0 0 4 0 0 7 Execution 2

Type: Date: 4

PQRTRADING
Depository Participant Stamp, Date & Time Authorised Signatory (ies)

Instructions:
1. To be submitted in duplicate for acknowledgement
2. Irreversible delivery-out instructions are instructions which cannot be cancelled
once effected.
3. Use separate forms for reversible delivery-out instructions and irreversible
delivery-out instructions.
4. In case it is not explicitly mentioned that it is an irreversible delivery-out
instruction, it will be assumed to be a reversible delivery-out instruction

Page 63 of 79
15.11 Format of Letter from CMs for Opening of Early Pay-in A/c at CDSL
Date:
To,
National Securities Clearing Corporation Ltd (NCDEX Clearing House),
Exchange Plaza, Bandra Kurla Complex,
Bandra (E), Mumbai – 400 051

Dear Sir / Madam,

Sub: Account for Early Pay-in of commodities through CDSL
We are interested in making early pay-in of commodities through CDSL. We
therefore request you to open an early pay-in account based on the details given
hereunder:

Name of the Member

Trading Member Clearing

Code Member ID

Communication
Address

City

State

Country

Pin Code

PAN Number

CDSL A/c No.

We hereby authorize NCDEX Clearing House to operate the above stated account on
our behalf and execute transactions as may be deemed necessary. Further, we
hereby authorize NCDEX Clearing House to debit our account towards any charges
that may be levied by CDSL on account of transactions in this account.
We would request you to advise us the account number allotted to us for this
purpose.
Yours Sincerely
Authorized Signatory

Page 64 of 79
Name:
Designation:

Page 65 of 79
15.12 (A) An illustration -Sequence of Events in Sales Tax Settlement

Commodity Chana having E+2 Settlement Cycle & E+5 days for Sales Tax
Settlement

Contract Expiry Date (20th) Submission of Delivery / Receipt Requests

Allocation of Delivery / Receipt Positions &

E+2 Settlement Date (22nd)
downloading of reports for clearing Members
Delivery & Receipt of actual quality & quantity of
commodity by respective clearing Members. The
details containing the Delivery Id, Symbol, Location,
ISIN and Quantity would be generated by the
Exchange and will be available in WEB NCFE to the
Buyer Member.

Next Working day after Submission of Sales Tax information by receiving

Settlement date (23rd) clearing Members and upload the Sales Tax
information on or before 15.00 Hrs.
Details of Buyer Clients and value of the delivery
obligation for delivering clearing Members for
submitting Sales tax amount information will be
available in WEB NCFE
2 Working days after Submission of Sales Tax information by delivering
Settlement date (24th) clearing Members and submit the Sales Tax
information in WEB NCFE on or before 15.00 Hrs.

Status of information submitted by delivering

3 working days
after Settlement (25th)
clearing Members will be available in WEB NCFE
SL 01 File is generated for all the Members giving
details of Sales tax amounts at the client level.
The buyer members would be debited and the seller
members would be credited with the sales tax amount
along with the MTM settlement at 11.00 am.

Seller client to generate and send the Invoice to buyer client within 5 working days
after Sales Tax Settlement is completed.

Page 66 of 79
15.12 (B) An illustration -Sequence of Events in Sales Tax Settlement for
staggered delivery of Gold (1 Kg.) and Silver (30 kgs.)

Commodity Gold 1 KG having T+1 Settlement Cycle & T+4 days for Sales Tax
Settlement

Tender Date (3rd) Submission of Delivery / Receipt Requests

Allocation of Delivery / Receipt Positions &

downloading of reports for clearing Members

T+1 Settlement Date (4th)
Delivery & Receipt of actual quality & quantity of
commodity by respective clearing Members. The
SL12 file containing the Delivery Id, Symbol, Location,
ISIN and Quantity would be generated by the
Exchange and will be available to the Buyer Member in
WEB NCFE.

Next Working day after Submission of Sales Tax information by receiving

Settlement date (5th) clearing Members and submitting the same to the
Exchange by WEB NCFE on or before 15.00 Hrs.

The details of buyer Clients and value of the delivery

obligation for delivering clearing Members for
submitting Sales tax amount information will be
available in WEB NCFE

2 Working days after Submission of Sales Tax information by delivering

Settlement date (6th) clearing Members in WEB NCFE on or before 15.00
Hrs.

SL 01 File is generated for all the Members giving

3 working days
after Settlement (7th)
details of Sales tax amounts at the client level. Only
available to members who have sales tax obligations
The buyer members would be debited and the seller
members would be credited with the sales tax amount
along with the MTM settlement at 11.00 am.

Seller client to generate and send the Invoice to buyer client within 5 working days
after Sales Tax Settlement is completed.

Page 67 of 79
 15.13 Sample Intersettlement Form

DP NAME

INTER – SETTLEMENT INSTRUCTIONS

___________________________________________________________________
___________
Sr. No. 00001 Client ID12453678 DPIDIN300017 Date

Request you to move securities in my/our account as per the details:

FROM TO
Market Type T+2 SO Market Type
Settlement No 2 0 0 5 0 1 3 Settlement No

Quantity Instruction
ISIN Security Name (in figures) Quantity (In Words) (To be fille
INC XXXXXX XX

Execution Date

Stamp, Date & Time Authorised Signatory (ies)

15.14 Proforma Sales Tax Invoice

To be given by the Seller

Buyer’s Name & Address

Seller’s local sales tax/VAT registration

number:
Delivery/Receipt No.(As given in SS_06
File)

Invoice No. Invoice Date

Seller Member Seller

name & Address Member
TMID/CMID
Buyer Member Buyer

Page 68 of 79
name & Address Member
TMID/CMID
Warehouse
Name and
Location

15.15 Sampling Request Letter

(to be submitted by the holder forwarding the remat request)

Date:

The Manager,
…………………………….

Name of the holder(s)

Depository Details:
Client Id
DP Id
Remat Request No.
ISIN
Quantity
Name of the commodity

I/ we request you to issue me representative sample from the lots constituting the
ISIN for which remat request has been put forth by me/ us and mark these lots
against me/ us. I/ we further undertake the following:
1. that I/ we shall take physical delivery of the lots marked to me under the above
remat request within 2 working days of the date of accepting the sample;
2. that in case I/ we default in taking physical delivery within 2 working days of
collecting the sample, I may be assigned lots other than those marked to me;
3. the sample quantity will be accounted for in the final quantity being delivered to
me/us.

Name and signature of Depositor *


(Acknowledgement)
(to be submitted at the time of taking physical delivery)

We hereby acknowledge the receipt of Sampling Request Letter for

_______(MT/Kgs) of ______________ (commodity) from _______________ (name
of holder) having the ISIN INC____________ in demat a/c identified by Client Id:
___________ & DP Id: __________.

Quantity of Sample provided *:____________

Date *:

Page 69 of 79
 Signature and seal of warehouse Manager
* Mandatory Fields

Page 70 of 79
 15.16 Bar number wise details of Silver for Delivery Pay-in and Pay-
out

Bar number wise details of Silver for delivery pay-in

Annexure I: To be given by delivering member to the Exchange

(To be printed on member’s letterhead)

Bar number wise details of Silver for delivery pay-in

Date:

To,
Exchange Operations Department
National Commodity & Derivatives Exchange
Mumbai. FAX No. 022-66406896/94

Sir,

I/ We hereby submit details of Commodity Silver (Symbol: SILVER) towards delivery

pay-in obligation.

I/ We also confirm that the required instructions to depository participant have been
given as per following details:

Settlement Date
Settlement No
Symbol
Location
CMID
DP ID
Client ID
Total delivery pay-in obligation (in Kgs)
Actual quantity offered towards delivery pay-in obligation (in
Kgs)

Bar wise details of quantity offered towards delivery pay-in obligation is as under:

S.No Client Code Client Name Bar Number Pay-in obligation Delivered
Quantity

Total

Yours truly,

Page 71 of 79
 (Authorized Signatory & Stamp)

Bar number wise details of Silver delivery pay-out to clients

Annexure II: To be given by receiving member to the Exchange

(To be printed on member’s letterhead)

Bar number wise details of Silver delivery pay-out to clients

Date:

To,
Exchange Operations Department
National Commodity & Derivatives Exchange
Mumbai. FAX No. 022-66406896/94

Sir,

I/ We hereby submit details of Commodity Silver (Symbol: SILVER) allocated to

receiving clients towards delivery pay-out.

I/ We also confirm that the required instructions to depository participant have been
given as per following details:

Settlement Date
Settlement No
Symbol
Location
CMID
DP ID
Client ID
Total delivery pay-out (in Kgs)
Actual pay-out received (in Kgs)

Bar wise details of quantity allocated to clients towards their delivery pay-out is as
under:
S.No Client Code Client Name Bar Number Pay-out Obligation Quantity

Total

Yours truly,

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(Authorized Signatory & Stamp)

15.17 On the letter head of Member

Date: __________

To
The Customer Service Group
National Commodity & Derivatives Exchange Limited
Akruti Corporate Park,1st Floor
LBS Road,Kanjur Marg ( West)
Mumbai 400 078
India

(Please fill in the relevant details as applicable).

Member name
Client name
Contact No.

Issue: Invoice/Sales Tax Demat Remat Warehouse (Please tick)

Fill relevant details below Details of issue

Invoice / Sales tax / forms not received
Counter member ID
Detail of Form not received
Sales tax amount
Demat issue
Warehouse receipt number
Name of Assayer
Date of Sampling
Amount/date of payment to assayer
Warehouse name / location
Beneficiary account number
Remat issue
Remat Request number
Warehouse Name/location
Excess warehouse Charges
Date of Physical Delivery
Warehouse Name / Location
Name of Client
Contact details of Client

Place: _______________ Name and signature of authorized signatory

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 Please attach relevant details (if any) with the format
*In CDSL – the account no. could be a beneficiary or pool account – 16 digit no.
In NSDL – the client id is an eight digit no.

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15.18 Complaint against Trading and Clearing Members of NCDEX
National Commodity & Derivatives Exchange Limited
Client Complaint redressal Form
(Complaint against Trading and Clearing Members of NCDEX)
Date: __________

To
The Customer Service Group
Akruti Corporate Park,1st Floor
LBS Road,Kanjur Marg ( West)
Mumbai 400 078
India.

Details to be filled in by the complainant

Client code
Client name Mr. / Ms:
Address for correspondence
(Please give complete address)
District / City
PIN Code
State
Contact telephone no with STD code
Mobile No
Member name
Branch address from where the
trading account was opened
District / City
PIN Code
State

Brief details of the complaint

_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________
_____________________________________________________________

Please enclose the below mentioned documents in support of the dispute

Enclosures No. of pages Enclosed (Y/N)
1. Contract notes
2. Bills
3. Daily MTM statement
4. Statement of account given by the
trading
5. Any other document in support of
your claim

Place Signature of the complainant

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15.19 Reduction of Exposure by the Member through NCFE
The Member has to enter all details pertaining to squaring up of orders as per the
fields given for the purpose in the NCFE front-end.

The path of the new NCFE software on the FTP common server is

“/Common/NCFE” folder

Installation Instructions for NCFE 5.1

For new users of NCFE software the installation steps are as under:

1. Download NCFE 5.1 setup.zip and extract it.

2. Run setup.exe which would install NCFE 5.1 by default in “C:\Program
Files\NCFE\”
3. Create the upload & download directories – “UPLD” & “DNLD” in “C:\Program
Files\NCFE\” if it doesn’t already exist.
4. Login to NCFE using username: ‘admin’ password: ‘admin’.

Installation Instructions for existing users of NCFE 5.0

For existing users of NCFE 5.0 the steps for installation are as under:

1. Download NCFE Patch Setup.zip and extract it.

2. Run setup.exe & install the patch in the directory where NCFE is installed i.e.
“C:\Program Files\NCFE\”.
3. Run the patch exe i.e. “NCFE_Patch.exe”. This exe will be at “C:\Program
Files\NCFE\” or this exe can be run by clicking “Start” menu and then select
“Run” and in the run dialog write “C:\Program Files\NCFE\NCFE_Patch.exe”
and then click Ok button of Run dialog box. This exe will update the
Broker_DB by creating new tables required.
4. In the installation directory of NCFE, replace the existing “NCFE.exe” with the
new “NCFE.exe” downloaded with the patch i.e. in the directory in which
“NCFE Patch Setup.zip” is extracted. This means copy “NCFE.exe” from the
directory in which “NCFE Patch Setup.zip” is extracted to the directory in
which NCFE is installed i.e. “C:\Program Files\NCFE\”. For example, if you
have extracted the NCFE Patch Setup.zip on your desktop then from the
folder which contains the extracted files, copy NCFE.exe to “C:\Program
Files\NCFE\”.
5. Create a directory structure with a new directory named “SqrOff” in
application directory and a directory named “upld” in this “SqrOff” directory.

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The instruction for creation and generation of the squaring up files in NCFE software
are given in the Help file and provided in the Common extranet folder. The path of
the Help file is:

“/Common/NCFE/NCFE new exe.doc”

Uploading steps to Extranet

The square off files will be generated in the “C:\Program Files\NCFE\SqrOff\upld“.

These files should be uploaded into member’s folder in the Web Extranet i.e. file
should be uploaded in <Member code>/SQROFF/UPLD folder on Extranet

The file naming convention is as follows

SQROFF_YY_ddmmyyyy.Tnn.txt

Eg - SQROFF_04_19012005.T01.txt

Where – ddmmyyyy– date of the file generation

And YY – No of Rows in the file
And nn – batch number

If there is any change in the naming convention, the file will be invalid for upload
through web extranet.

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 DISCLAIMER

This booklet provides guidance on the operational aspects relating to physical

delivery and settlement of commodities at NCDEX and is not intended to substitute
or modify any Rule, Bye-law, Regulation or any circular of the Exchange. As the
operational procedure may undergo changes from time to time, you should keep
track of such changes. While every care has been taken to ensure accuracy and
adequacy of the information contained in this booklet, no warranty of any kind,
inclined, expressed or statutory is given in conjunction with the information and
material. In no event or circumstances shall NCDEX and / or its employees and / or
its agents be responsible in any manner for any unintentional errors or omissions of
factual differences. This booklet cannot be a basis for any claims or demands or
causes of action.

In the event of any difference in the English version of this booklet with the booklet
in any other language, the contents of English version shall supersede.

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Copyright © 2003-04 National Commodity & Derivatives Exchange Limited.

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