Contract Specification of Arecanut JAHAJI MVJ garbled - MCX

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If the spot market price is higher than the as mentionedabove- the difference between the two will be debited tothe seller.II - In case a buyer refuses to take delivery or fails to honourhis fund obligations then the open position will be closed out atlower of the following two rates1) Due Date Rate (DDR) of the contract or2) Spot market price, as disseminated by the Exchange,on the date of the pay in default/refusal by the buyer totake delivery.Accordingly,If the spot market price is lower than the DDR asmentioned above- the difference between the two will bedebited to the buyer.Additionally, Penalty of 2.5% and replacement cost of 4% will berecovered from the defaulting buyer / seller.Taxes, Duties, Cess andLeviesClose out of open positionsDue Date RateOdd lot TreatmentAdjustment ofTransportation CostWarehouse, fumigation,insurance and transportationOut of the penalty, 2% will be credited to IPF and 0.5% will becredited to the counter party, while out of the replacement costand differences recovered 90% will be passed on to thecounter party and 10% will be retained by the Exchange.Ex-warehouse Mangalore – exclusive of all taxesThe buyer will have to pay Sales Tax/ VAT, if applicable, andother charges/levies as applicable.The Seller will issue invoice in the name of the buyer,reflecting the Sales Tax or VAT paid by him. In case of interstatemovement, buyer has to submit requisite forms or payCST as applicable. Post lifting delivery charges are borne bythe buyer.All outstanding positions not settled by way of delivery on theexpiry of contract shall be closed out at Due Date Rate andrespective pay-in and pay-out of funds of such close out shallbe effected on 1 st day after the last trading day by 11.00 a.m.DDR is calculated on the last day of contract maturity by wayof taking the simple average of last 3 day’s spot price. Forobtaining the prices of the spot market, the Exchange will takethe prices from a panel of market participants associated andtake average price.Delivery will be effected only on delivery lot basis. In case ofany odd lot the delivery will not be marked and the same willbe closed out at the DDR and penalty to such buyer / seller willbe levied a minimum penalty @5% of DDR. 90% of the penaltycollected shall be passed on to the counter party while 10%will be appropriated by the Exchange.Not applicable-Borne by the seller upto commodity pay-out date-Borne by the buyer after commodity pay-out date
ChargesBuyer’s option for lifting ofDeliveryDelivery CenterDelivery OrderBuyer will not have any option about choosing the place ofdelivery and will have to accept the delivery as per allocationmade by the Exchange.Exchange approved warehouse at MangaloreGood delivery order will be submitted in specified format givingdetails of Members / Registered Non-Members who shallperform delivery.Each delivery order issued shall be in multiples of minimumdelivery lots and shall be designated for only one deliverycenter and one location in such center.Delivery GradesEvidence of Stock inpossessionEndorsement of DeliveryOrderSampling and Analysis at thetime of DeliverySampling ProcedureIt will be accompanied with Warehouse Receipt, Invoice andGood Delivery Quality Certificate valid at least for 10 days afterthe expiry of the contract, as per the contract specificationsfrom the Exchange designated certifier. Delivery order oncesubmitted cannot be withdrawn or cancelled or changedunless so agreed by the Exchange in writing. Memberstendering the delivery order shall clearly specify the grade andshall be in conformity with the surveyor’s certificateaccompanied with the delivery document and cannot bechanged subsequently.The members tendering delivery will have the option ofdelivering such grades of goods as permitted by the Exchangeunder the contract specifications. The buyer will not have anyoption to select a particular grade and the delivery offered bythe seller and allocated by the Exchange shall be binding onhim.At the time of issuing the delivery order, the member mustprove to the Exchange that he holds stocks of the quantity andquality specified in the delivery order at the declared deliverycenter. This should be substantiated by way of producingwarehouse receipt.The buyer member can endorse delivery order to a client orany third party with full disclosure given to the Exchange.Responsibility for contractual liability would be with the originalassignee.In case the buyer does not agree to the Surveyor's report as tothe quality of the commodity, he shall desire for secondsampling and intimate the Exchange in writing within 48 hoursof the pay-out date.The system of drawing of samples tendered for delivery will beas prescribed in the Bureau of Indian Standards procedure.Three Samples shall be drawn as under:• First Sample - for the buyer• Second Sample - for the seller• Third Sample - for final reference, if it becomes
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Contract Specification of Arecanut JAHAJI MVJ garbled - MCX

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