Ex-Chennai(T+2)Surana - National Spot Exchange Limited

National Spot Exchange LimitedCircularRef. No.: NSEL/TRD/2011/076 April 18, 2011Dear Members,Commencement of Spot Trading in Imported Gold bar 1 Kg Ex-Chennai delivery ContractIn terms of the provisions of the Rules, Bye-Laws and Business Rules of the Exchange, the Members ofthe Exchange are notified that Imported Gold bar 1 Kg Ex-Chennai delivery Contract will be available fortrading from Tuesday the 19 th April 2011 as per the specification given below.Consequent upon the availability of this new contract ‘SURGOLDCHN’, the earlier contract‘SURANAGOLD’ issued vide circular no. NSEL/TRD/2010/206 dated December 31, 2010 will not beavailable for trading from Tuesday the 19 th April 2011.Contract Specifications and settlement procedure are as under:1) Contract Specifications – refer to the enclosed Annexure 1,2) Settlement Schedule and Transaction charges – refer to the enclosed Annexure 2,3) Settlement and Delivery Procedure - refer to the enclosed Annexure 3, and4) Auction Mechanism – refer to the circular no. NSEL/C&S/2008/029 dated 26 th November 2008.The accredited delivery center for the aforesaid contract is given below:Accredited Delivery CenterName : SURANA CORPORATION LIMITEDAddress : Old. No.-70 / New. No.143N.S.C.Bose RoadChennai -600 001Contact person : Mr. Pritesh Sanghvi / ManikandanContact no : 044-42636818 (9791040170 / 9500061511)Fax No : 044-42636818Email id : treasury@suranacorp.comThe aforesaid contract specifications, settlement, delivery and auction procedure will be binding on all themembers of the Exchange and clients trading through them.For any clarification, the following Exchange officials can be contacted:1) Mr. V. Jagdeesan at +91 91766 65905 or through email atv.jagdeesan@nationalspotexchange.com2) Mr. Pawan Betala at +91 91766 79887 or through email atpawan.kumar@nationalspotexchange.comFor and on behalf ofNational Spot Exchange Ltd.H. B. MohantyAsst. Vice PresidentEncl.: As above-------------------------------------- Registered office --------------------------------------102-A, Landmark, Suren Road, Chakala, Andheri (East), Chennai – 400 093Tel.: 022 – 6761 9900 Fax: 022 – 6726 9525www.nationalspotexchange.com email: NSEL-Trading@nationalspotexchange.com

Commodity DetailsContract Specifications of Imported Gold Bar 1 kg bar Ex-Chennai (T+2)Annexure – 1CommoditySymbolDescriptionContract SpecificationDaily contractGold BarSURGOLDCHNImported Gold bar 1 Kg Ex-ChennaiBuying and selling during the day will be permitted , but all positionsoutstanding at end of trading session on a day must result intocompulsory deliverySale & Delivery byAuthorized sellers OnlyTrading periodTrading sessionTrading Related ParametersTrading unitQuotation / Base ValueTick size (minimum pricemovement)Only SURANA CORPORATION LTD or any other seller authorizedby the Exchange is allowed to sell and tender delivery under thiscontract.Monday to Saturday except Exchange specified holidays in advance.Monday to Friday: 10:00 AM to 11:30 PMSaturday: 10:00 AM to 2:00 PM1 Kg1 gram of gold with 999 purity inclusive of VAT any other additional taxor surcharge on sales tax, local taxes and octroi will be extra.10 paisa per gramDaily price limits 3%Price QuoteEx-ChennaiInitial margin 4%Special MarginIn case of additional volatility, a special margin of such percentage, asdeemed fit, will be imposed immediately on both buy and/or sell side inrespect of all trade positions, which will remain in force for the sametrading day.Maximum order size 10 kgsDelivery Related ParametersDelivery unitDelivery center(s)Delivery Period MarginQuality SpecificationsQuality AdjustmentTender and Delivery PeriodDelivery Logic1 Kg barChennai at designated delivery centers10% on the closing priceGrade: 999, Gold bars should be serially numbered supplied by LBMAapproved suppliers or other suppliers as may be approved by NSEL.The price is on the basis of 999 purity. In case of delivery of 995 purity,Buyer will get a proportionate discount and sale proceeds will becalculated in the manner of rate of delivery *995/999. If the purity isless than 995, it is rejected.Within Two days after the trading dayCompulsory delivery. All traded positions at the closing of the marketshould be delivered as per settlement schedule specified in Annexure 2.Auction Related ParametersProcessSymbolAuction periodAuction will be initiated by the Exchange in case of shortages in fundsand/or commodities.ABSURGLCHN for buy-in and ASSURGLCHN for sell-out7:00 PM to 7:30 PM on T+2 day2

A) Settlement ScheduleParticulars Day Pay-in Pay-outAnnexure – 2MTMFunds – NormalT+1T+2Up to 11:00 AMUp to 1:00 PMAt 12:00 NoonAt 5:30 PMDelivery of Commodities – Normal T+2 Up to 2:00 PM At 5:30 PMDelivery of Commodities – Auction T+3 Up to 11:00 AM At 1:00 PMFunds – Auction T+3 Up to 12:00 Noon At 3:00 PMB) Transaction charges: ` 20/- per 1 lakh of turnover will be levied on both buyers and sellers.3

Delivery to be liftedcompulsorily within two daysfor the scheduled pay-out day.Trading, Delivery and Settlement Procedure of Gold ContractsAnnexure - 3Only SURANA CORPORATION and such other person authorizedby exchange are authorized to sale under this contract.The buyers have to compulsorily lift the Gold bar within two daysof the scheduled commodities pay-out day. In case of delaybeyond 2 days, the Exchange reserves right to levy such penaltyand take such action as it may deem fit.However the fund pay-out shall be given to the seller only uponthe delivery of gold bars to the buyer unless otherwise decided bythe Exchange Authorities.If a buyer has not lifted Gold bar purchased in this contract, he willbe entitled to participate in auction and tender delivery in thiscontract. But once the Gold bar is lifted (delivery is taken), it is notacceptable for delivery.Taxes, Duties, Cess and LeviesDeliverable grade of underlyingcommodityVerification by the Buyer at thetime of release of deliveryEx-Chennai.Price is inclusive of VAT, any other additional tax or surcharge onsales tax, local taxes and octroi.The selling members tendering delivery will have the option ofdelivering such grades as per the contract specifications. Thebuyer has no option to select a particular grade and the deliveryoffered by the seller and allocation by the Exchange shall bebinding on him.At the time of taking delivery, the buyer can check his delivery infront of delivery center officials. If he is satisfied with the quantity,weight and quality of material, then he will issue receipt of themetals instantly. If he is not satisfied with the metal, he can insistfor assaying by any of the approved assayers available at thatcenter. If the buyer opts for assaying, the Delivery Center officialswill carry the goods to the assayer’s facilities, get it assayed andbring it back to the Delivery center along with assayer’s certificate.If the assayer’s certificate differs from the certificate submitted bythe seller in respect of quality or weight materially, then the buyerand seller have to mutually negotiate the final settlement proceedswithin 1 day from receipt of assayer’s report, however if they donot agree on any mutually acceptable amount within 1 day, thenthe Exchange will send the goods to a second assayer and in thatcase, the report received from such assayer will be final andbinding on both buyer and seller.The cost of first assaying as well as cost of transportation fromVault to assayer’s facilities to and fro will be born by the buyer,while the cost of second assaying, if any, will be equally dividedbetween the buyer and seller. The charges during such period offirst and second assaying, if any, will be born by both the buyersand sellers equally.If the buyer does not opt for assaying at the time of liftingdelivery, then he will not have any further recourse to challengethe quantity or quality subsequently and it will be assumed that hehas received the quantity and quality as per the bill made by theseller.4

Quality AdjustmentProcedure of taking deliveryfrom the VaultThe price of Gold is on the basis of 999 purity. In case the sellerdelivers Gold bar less than 995, such bar will not be accepted.For the purpose of taking delivery of goods fully or partially, theMember shall send to the Exchange an Authority letter on his letterhead, authorizing a representative on his behalf to take thedelivery. Such Authority letter shall be accompanied by the identitycard number of the authorized representative issued by theExchange or a copy of Photo identity proof and specimen signatureof the authorized representative duly attested by the Member.The Authority letter shall consist of the following details:a. Name of the authorized representative.b. Name of the Commodity along with quantity.c. Name of the Delivery Center.d. Signature of the authorized representative.e. Proof of Identity viz. PAN card, driving license, Election IDof authorized representative.The above-mentioned details are required to be sent to theExchange. Once the Exchange receives the above-mentioneddetails, the Exchange will send Delivery Order (DO) to the Vaultauthorities directly.Based on the Delivery Order received, the Delivery center willdisburse the requested quantity of Gold to the authorizedrepresentative who has to present himself personally with therequisite photo identity proof in original, the copy of which wassent /communicated to the Exchange by its Member.The Delivery center officials will, upon final scrutiny/checking ofthe identity, deliver goods to the representative of the Member.The Delivery Center officials in case of any discrepancy or doubt orany other reason may refuse to issue the goods to therepresentative under the intimation to the Exchange.The delivery given to the representative shall be final & binding tothe Member at all times.Vault, Insurance andTransportation chargesExtension of delivery periodLegal obligationApplicability of Business RulesThere shall not be any vaulting, Insurance or transportationcharges. All buyers are required to take delivery on the day of payout.As per Exchange decision due to force majeure or otherwise.The members will provide appropriate tax forms wherever requiredas per law and as customary and neither of the parties (sellermember and buyer member) will unreasonably refuse to do so.The general provisions of Business Rules of the Exchange anddecisions taken by Board of Directors and Executive Committee ofthe Exchange in respect of matters specified above will applymutatis mutandis. The Exchange may further prescribe additionalmeasures relating to delivery procedures, warehousing, qualitycertification, Margin and risk management from time to time. Incase of any interpretational dispute or clarifications, the decision ofthe Exchange shall be final and binding on the members andothers.******5