Brent Crude Oil Product Note CHAPTER 1 - TRADING PARAMETERS ................................................................. 2 Authority ...................................................................................................... 2 Unit of Trading ............................................................................................. 2 Months Traded In ......................................................................................... 2 Tick Size ....................................................................................................... 2 Basis Price ................................................................................................... 2 Unit for Price Quotation ............................................................................... 2 Hours of Trading .......................................................................................... 2 Last Day of Trading ...................................................................................... 2 Mark to Market ............................................................................................. 2 Position limits .............................................................................................. 2 Margin Requirements ................................................................................... 3 Additional/Special Margin ............................................................................ 3 Delivery Margins .......................................................................................... 3 Delivery Default Penalty............................................................................... 3 Arbitration ................................................................................................... 3 Compliance of Laws ..................................................................................... 4 CHAPTER 2 - DELIVERY PROCEDURES ................................................................ 5 Unit of Delivery ............................................................................................ 5 Delivery Size ................................................................................................ 5 Delivery Requests ........................................................................................ 5 Delivery Allocation ....................................................................................... 5 Actual Delivery ............................................................................................. 5 Approved Storage Facility/Warehouse ......................................................... 6 Empanelled Assayer ..................................................................................... 6 Quality Standards ........................................................................................ 6 Standard Allowances .................................................................................... 6 Good / Bad delivery Norms .......................................................................... 6 Brent Crude Oil Sampling ............................................................................. 6 Empanelled Assayer ..................................................................................... 7 Quality Testing Report ................................................................................. 7 Testing Procedure ........................................................................................ 7 Assayer Certificate ....................................................................................... 7 Electronic transfer ....................................................................................... 7 Assayer Charges .......................................................................................... 7 Duties & levies ............................................................................................. 7 Stamp Duty .................................................................................................. 8 Taxes ........................................................................................................... 8 Premium / Discount ..................................................................................... 8 CHAPTER 3 - CLEARING AND SETTLEMENT ......................................................... 9 Daily Settlement .......................................................................................... 9 Daily Settlement Prices ................................................................................ 9 Final Settlement Prices ................................................................................ 9 Pay in and Pay out for Daily Settlement / Final Settlement.......................... 9 Pay in and Pay out for final physical settlement ......................................... 10 Completion of Settlement on Exchange Platform…………………………………..11 Exhibit Exhibit Exhibit Exhibit

1 2 3 4

– CONTRACT SPECIFICATIONS OF Brent Crude Oil ...................... 12 - Warehouse & Assayer Address Details ...................................... 14 - Good / Bad delivery norms ....................................................... 15 – Specimen of Brent Crude Oil Testing Report ............................. 16

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -1-

Brent Crude Oil Product Note CHAPTER 1 - TRADING PARAMETERS Authority Trading in Brent Crude Oil Futures contracts may be conducted as specified in the Rules, Byelaws and Regulations of the Exchange and as per the directions issued by the Exchange thereunder or the Forward Markets Commission from time to time.. A specimen of Brent Crude Oil Futures contract specification is indicated in Exhibit 1. Unit of Trading The unit of trading shall be 100 Barrels (1 Barrel=42 US Gallons=158.98 Liters). Bids and offers may be accepted in lots of 100 Barrels or multiples thereof. Months Traded In Trading in Brent Crude Oil futures may be conducted in the months as specified by the Exchange from time to time. The contracts shall commence trading as per the Contract Launch Calendar. Tick Size The tick size of the price of Brent Crude Oil shall be Re. 1/- per barrel. Basis Price The price of Brent Crude Oil is basis Sullom Voe, Shetland Islands, United Kingdom exclusive of all taxes and levies. Unit for Price Quotation The unit of Price quotation for Brent Crude Oil shall be in Rupees per Barrel. Hours of Trading As per directions of the Forward Markets Commission from Time to Time, currently: Mondays through Fridays – 10:00 AM to 11:30 PM 10:00 AM to 11:55 PM (during the US day light saving period) On Expiry Date – at 11:30 PM / 11:55 PM* As per directions from Forward Markets Commission from time to time. The Exchange may vary the above timing with due notice. All timings are as per Indian Standard Timings (IST) *during US day light saving period Last Day of Trading The last day of trading in future contracts is as notified by the Exchange and as detailed in the Contract Launch calendar circulars issued by the Exchange. Mark to Market All the outstanding positions in futures contract in Brent Crude Oil would be marked to market daily based on the Daily Settlement Price (DSP) as determined by the Exchange. Position limits Member: 20,00,000 barrels or 15% of market wide open interest, whichever is higher. Client: 4,00,000 barrels. The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -2-

Brent Crude Oil Product Note The above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange will, on a case to case basis, decide the hedge limits. Please refer to Circular No. NCDEX/TRADING-100/2005/219 dated October 20, 2005. Margin Requirements NCDEX will use Value at Risk (VaR) based margin calculated at 99.95 % confidence interval for one day time horizon. NCDEX reserves the right to change, reduce or levy any additional margins including any mark up margin. Additional/Special Margin In case of unidirectional price movement/ increased volatility, an additional/ special margin at such other percentage, as deemed fit by the Regulator/Exchange, may be imposed on the buy and the sell side or on either of the buy or sell sides in respect of all outstanding positions. Reduction/ removal of such additional/ special margins shall be at the discretion of the Regulator/Exchange. Delivery Margins In case of positions materializing into physical delivery, delivery margins will be charged for each commodity to mitigate the risks arising thereof. The delivery margins charged would be computed as look ahead period (“N” days) VaR margins or a fixed percentage delivery margin, whichever is higher. For further details, participants can refer to circular no. NCDEX/RISK-004/2013/073 dated March 12, 2013. Delivery Default Penalty The penalty structure for failure to meet delivery obligations by the Sellers is as follows: Total amount of penalty = 2.5 % + the difference between the Final Settlement Price (FSP) and the spot price prevailing on the last day of pay-in/pay-out of the expired contract, if the said spot price is higher than FSP; else this component will be zero. The 2.5 % penalty collected as mentioned above shall be used as follows: a) 2 % component of the penalty shall be deposited in the Investor Protection Fund of the Exchange; b) 0.5 % component of the penalty shall go to the opposite party; and c) If the spot price on the last day of pay-in/pay-out of the expired contract is higher than the FSP, then the difference between the FSP and the spot price prevailing on the said latter day shall also go to the opposite party. Please refer circular no. NCDEX/TRADING-091/2007/235 dated October 4, 2007 & NCDEX/TRADING – 097/2007/247 dated October 17, 2007. Arbitration Disputes between the members of the Exchange inter-se and between members and constituents, arising out of or pertaining to trades done on NCDEX shall be settled through arbitration. The arbitration proceedings and appointment of arbitrators shall be as governed by the Bye-laws and Regulations of the Exchange.

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -3-

Brent Crude Oil Product Note Compliance of Laws It is clarified that it is the sole obligation and responsibility of the Members and market participants to ensure that apart from the approved quality standards stipulated by the Exchange, the commodity Brent Crude Oil deposited / traded / delivered through the Approved Storage Facility/Warehouse is in due compliance with all the applicable laws/registrations/licenses as may be required while dealing in the commodity Brent Crude Oil and as laid down by various statutory authorities like Ministry of Petroleum & Natural Gas, Import/Export Regulations, Weight & Measures, Fire Safety norms, Environmental norms etc., as also other State/Central laws and authorities issuing such regulations in this behalf from time to time, including but not limited to compliance of provisions and rates relating to Sales Tax, Value Added Tax(VAT), LBT, Octroi, Excise duty, Stamp duty, Service tax, etc. as applicable from time to time on the underlying commodity of Brent Crude Oil contract offered for deposit / trading / delivery and the Exchange shall not be responsible or liable on account of any non-compliance thereof.

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -4-

Brent Crude Oil Product Note CHAPTER 2 - DELIVERY PROCEDURES Unit of Delivery The unit of delivery for Brent Crude Oil shall be 50,000 barrels. Delivery Size Delivery is to be offered and accepted in lots of 50,000 barrels or multiples thereof. A quantity variation of +/- 1% by volume is permitted as per contract specification. Delivery Requests The procedure for Brent Crude Oil delivery is based on the contract specifications as per Exhibit 1. Sellers & Buyers having open positions are required to give their delivery intention/notice to deliver to the extent of his open position, at least 3 days before the expiry of the contract. Accordingly, the window for acceptance of delivery intention requests will be open for 3 working days. The delivery intention submission window will close 3 days prior to the expiry date of the contract. Members giving delivery intention requests for the commodities are not permitted to square off their open positions once such request is made. A penalty of 5% of final settlement price (FSP) on the position squared off, if any, will be levied besides any further action as deemed fit by the Exchange. NCDEX would thereafter complete the matching process based on the location and by random, keeping in view the storage capacity of warehouse and Brent Crude Oil already deposited / available in electronic credit form for delivery or any other factor(s) that the Exchange deems appropriate for completion of the matching process. The Penalty structure for failure to meet delivery obligations will be as per circular no. NCDEX/TRADING-091/2007/235 dated October 4, 2007 & NCDEX/TRADING – 097/2007/247 dated October 17, 2007. Delivery Allocation The Exchange would then compile the delivery intention requests received from members on the last trading day, as specified in Chapter 1 above. The Buyers / Sellers who have to receive / give delivery would be notified on the same day after the close of trading hours. Delivery of Brent Crude Oil is to be accepted by Buyers at the approved tank/pipeline where the Seller effects the physical delivery in accordance with the contract specifications. Actual Delivery The Seller would have to deliver the Brent Crude Oil product to the storage facility at Mumbai Port /JNPT Area. This will be tested for quality and quantity by an NCDEX appointed assayer. Based on the satisfactory report by the assayer the credit of this Brent Crude oil would be transferred into the Seller’s COMTRACK account in the electronic form. Where Brent Crude oil is sold for delivery in a specified month, the seller must have requisite electronic credit of such Brent Crude oil holding in his Clearing Member’s Pool Account before the scheduled date of pay in as per the process put in place by the Exchange. On settlement, the buyer’s Clearing Member Pool Account would be credited The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -5-

Brent Crude Oil Product Note with the said delivery quantity after pay out. The clearing member is expected to transfer the same to the Buyer’s Comtrack account. However, the Buyer must take actual physical delivery of Brent Crude Oil within thirty days after the expiry of the contract. Approved Storage Facility/Warehouse NCDEX has arranged storage facility for the Brent Crude Oil. The Sellers would have to contact in advance to arrange for the storage facility. Empanelled Assayer NCDEX has empanelled assayer for quality testing and certification of Brent Crude Oil received at the Approved Storage Facility/Warehouse. The Brent Crude Oil received at such NCDEX approved storage facility/ warehouse will be tested and certified by such Assayer before acceptance as good delivery in the warehouse. Likewise, Brent Crude Oil delivered to Buyers will be from the Approved Storage Facility/Warehouse only. Quality Standards The following grade of crude oil is deliverable:Crude oil Brent

API Gravity 38.5 degrees

Sulphur Content 0.36%

The following grades of Crude oil are also deliverable, but no premium/discount will be applicable:Crude oil API Gravity Forties 41.5-42.5 degrees Osberg 35.9 degrees API:- American Petroleum Institute Sulphur Content is by weight

Sulphur Content 0.25-0.3% 0.32%

No quality variation in these grades is allowed Standard Allowances Standard Allowance per validation of quality allowed will be 1% on account of sample testing. The quantity credited will be the actual quantity delivered at the tested API Gravity and Sulphur Content Levels, after providing for standard allowances on account of sampling. Good / Bad delivery Norms Brent Crude Oil delivery into NCDEX Approved Storage Facility/Warehouse would constitute good delivery or bad delivery based on the good / bad delivery norms as per Exhibit 3. The list contained in Exhibit 3 is only illustrative and not exhaustive. NCDEX would from time to time review and update the good / bad delivery norms based on the trade / industry practices. Brent Crude Oil Sampling A sample of One liter each will drawn from Bottom, Middle and Top of the tank for making a composite mixture of 3 liters for conducting the tests. This is then divided into 4 parts, The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -6-

Brent Crude Oil Product Note

These -

samples will be distributed as under: One sample to Depositor One sample to Warehouse service provider One sample for Analysis by assayer One sample for record with assayer

Empanelled Assayer NCDEX has empanelled Assayer for quality testing and certification of Brent Crude Oil received at the Approved Storage Facility/Warehouse. The quality testing and certification of Brent Crude Oil will be undertaken only by such Assayer. Quality Testing Report The test report issued by the Brent Crude Oil testing laboratory on the samples drawn shall be acceptable and binding on all parties. A specimen format of the quality testing report is indicated in Exhibit 4. Testing Procedure Testing for Brent Crude Oil will be done as per the following standards, For API-Gravity – ASTM D 1298 For Sulphur Content – ASTM D 129 Assayer Certificate Testing and quality certificate issued by NCDEX empanelled Assayer for Brent Crude Oil delivered at Approved Storage Facility/Warehouse in Mumbai/JNPT Area and at such other locations announced by the Exchange from time to time shall be acceptable and binding on all parties. Each delivery of Brent Crude Oil at the storage facility/warehouse must be accompanied by a certificate from Assayer in the format as per Exhibit 4. Electronic transfer Any buyer or Seller receiving and or effecting Brent Crude Oil delivery would have to open a Comtrack account with an NCDEX empanelled Comtrack Participant (CP) to hold the Brent Crude Oil in electronic form. On settlement, the Buyer’s account with the CP would be credited with the quantity of Brent Crude Oil received by him from the Seller and the corresponding Seller’s Comtrack account would be debited. The Buyer wanting to take physical delivery of the Brent Crude Oil holding has to make a physical withdrawal request in prescribed form to his CP with whom Comtrack account has been opened. The CP would then route the withdrawal request to the warehouse for issue of the physical commodity i.e. Brent Crude Oil to the Buyer and debit his Comtrack account, thus reducing the electronic balance to the extent of the Brent Crude Oil so withdrawn physically as per his request. Assayer Charges The Assayer charges for testing and quality certification should be paid to the Assayer directly at the delivery location either by cash / cheque / demand draft. These charges shall be borne by the Seller at the time of delivery into the storage tank. Duties & levies The Seller shall be responsible to bring the Cargo to Mumbai Port/JNPT Area. The Buyer shall pay for the freight cost, insurance and other duties and levies as per the documents provided by the Sellers. The customs/import duty will be that as applicable on the day the goods are cleared from Indian Customs Department by the Buyer. The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -7-

Brent Crude Oil Product Note Stamp Duty Stamp duty is payable on all contract notes issued as may be applicable in the State from where the contract note is issued or State in which such contract note is received by the client. Taxes Service tax Service tax will be payable by the members of Commodity Exchanges on the gross amount charged by them from their clients on account of dealing in commodities. Sales Tax / VAT Local taxes/ VAT wherever applicable is to be paid by the Seller to the Sales tax/VAT authorities on all contracts resulting in delivery. Accordingly the Buyer will have to pay the taxes/VAT to the Seller at the time of settlement. Members and / or their constituents requiring to receive or deliver Brent Crude Oil should register with the relevant tax/VAT authorities of the place where the delivery is proposed to be received / given. In the event of sales tax exemption, such exemption certificate should be submitted before settlement of the obligation. There will be no exemptions on account of resale or second sale in VAT regime. Premium / Discount No premium or discount on the basis of quality specifications will be applicable for Brent Crude Oil.

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -8-

Brent Crude Oil Product Note CHAPTER 3 - CLEARING AND SETTLEMENT Daily Settlement All open positions of a futures contract would be settled daily based on the Daily Settlement Price (DSP) as determined by Exchange. Daily Settlement Prices The Daily Settlement Price (DSP) will be as disseminated by the Exchange at the end of every trading day. The DSP will be reckoned for marking to market all open positions. Final Settlement Prices The Final Settlement Price (FSP) in Indian Rupees (INR) will be determined by the Exchange on maturity of the contract. The FSP will be the value of Brent Index published by Intercontinental Exchange (ICE) for a similar corresponding contract expiring on ICE. The exchange rate to be used as the conversion factor shall be the closing price of benchmark domestic currency derivate exchange on the preceding business day of the launch day and this USD-INR exchange rate will be applicable during the entire tenure of the contract till the date of expiry. On expiry of the contract, the following types of open positions would be cash settled: a) Delivery information not provided. b) Unmatched delivery information The open positions for which information haves been provided for and have been matched by the Exchange, would result in physical delivery. Pay in and Pay out for Daily Settlement / Final Settlement For Brent Crude Oil the daily settlements will be as per the table illustrated below. As the FSP will be declared only on E+1 day the contract will be initially settled on E+1 using the Daily Settlement Price. Subsequently on E+2 after the declaration of FSP the difference between the FSP and the DSP will be settled. The buyer clients would have to deposit requisite funds with their respective Clearing Member before “pay in” on both the days. Example: For a contract expiring on the 15th of a particular month (i.e. on E), the FSP will be available on the subsequent trading day (i.e.16th of the month or E+1). The process of settlement will be done as follows: The Trading would be done on the expiring contract till the 15th of the month (i.e. E day). The MTM Settlement will be done on the 15th at the Daily Settlement Price for the contract. The actual funds settlement would be done on the 16th of the month (i.e. on E+1) The Final Settlement, with respect to the difference between Daily Settlement Price and Final Settlement Price as declared by the Exchange will be done on the 16th of the month (i.e.E+1). The Final funds pay in pay-out will be done on the 17th of the month (i.e. E+2). All fund debits and credits for Daily Settlement of the Member would be done in the Member’s Settlement Account with the Clearing bank. The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -9-

Brent Crude Oil Product Note

Time (T / E+1) On or before 11.00 hrs After 13.00 hrs

Activity PAYIN - Debit paying member a/c for funds PAYOUT – Credit receiving member a/c for funds

All fund debits and credits for difference of Daily Settlement Price and Final Settlement Price would be done in the Member’s Settlement Account with the Clearing bank. Time (E+2) On or before 11.00 hrs After 13.00 hrs

Activity PAYIN - Debit paying member a/c for funds PAYOUT – Credit receiving member a/c for funds

Pay in and Pay out for final physical settlement The table below illustrates timings for pay in and pay out in case of positions marked for physical settlement. The buyers / sellers would have to deposit requisite funds / Brent Crude Oil with their respective Clearing member before “pay in”. Pay in and Pay out for Final Settlement in case of physical deliveries Time (E+3) Activity On or before 12.00 hrs PAYIN - Debit Buyer Member Settlement a/c for funds - Debit Seller Member’s CM Pool Account for Brent Crude Oil After 14.30 hrs PAYOUT - Credit Seller Member Settlement a/c for funds - Credit Buyer Member’s CM Pool Account for Brent Crude Oil Additionally the supplemental settlement for Brent Crude Oil futures contracts for premium / discount adjustments relating to quality of Brent Crude Oil delivered, actual quantity delivered and close out for shortages, will also be conducted on the same day. Clearing Members are required to maintain adequate fund balances in their respective accounts. Pay in and Pay out for supplemental settlement Time (E + 3) Activity On or before 15.00 hours PAY IN - Debit Member Settlement a/c for funds After 15.00 hours PAY OUT – Credit Member Settlement a/c for funds

Early Payin of Commodities Members can make an early pay-in of commodities to get exemption from the applicable delivery margin and the same would be considered for the purpose of adjustment against their settlement obligations. The member shall mark EPI using the NCFE web application. The user guide for the same is available for download under:NCFE Menu: Downloads-> Download files-> Under User Manual folder-> EPI user Supplementary Settlement for Taxes The Exchange will conduct a separate supplementary settlement, as illustrated below, three days after normal pay out for completion of tax transactions.

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -10-

Brent Crude Oil Product Note In order to facilitate issue of invoice to right parties, the buyer Clearing Members are required to give the buyer client details to the Exchange latest by 15.00 hrs on E+4 day failing which the buying member is considered as the end buyer and accordingly invoice is issued in his/their name. The Seller Clearing Members are required to give the seller client details to the exchange latest by 15.00 hrs on E + 5 day. The amounts due to the above differences will be debited / credited to Member’s clearing bank account similar to normal settlement.

Pay in and Pay out for Taxes Time (E + 6) Activity On or before 11.00 hours PAY IN: Debit Buyer Member Settlement a/c for funds. After 11.00 hours PAY OUT: Credit Seller Member Settlement a/c for funds For further clarification and detailed procedure on sales tax settlement, participants can refer to circular number NCDEX/CLEARING-001/2008/002 issued on January 04, 2008. Completion of Settlement on Exchange Platform The settlement obligations on the Exchange platform shall be deemed to be completed as per the provisions of the Rules, Bye-laws and Regulations of the Exchange and the circulars issued by the Exchange thereunder from time to time

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -11-

Brent Crude Oil Product Note Exhibit 1 – CONTRACT SPECIFICATIONS OF Brent Crude Oil (Applicable for contracts expiring in July 2014 and thereafter) (Updated on June 19, 2014) Type of Contract

Futures Contract

Name of Commodity

Brent Crude Oil

Ticker symbol

BRENTCRUDE

Trading System

NCDEX Trading System

Unit of trading

100 Barrels

Maximum order size

5000 Barrels

Delivery unit

50,000 Barrels

Quotation/base value

Rs per barrel*

Basis

Sullom Voe, Shetland Islands, United Kingdom exclusive of all levies and taxes.

Tick size

Re 1/-

Quality specification

Also Deliverable

Crude Type

API Gravity

Sulphur Content

Brent

38.5 degrees

0.36%

Crude Type

API Gravity

Sulphur Content

Forties

41.5-42.5 degrees

0.25-0.3%

Osberg

35.9 degrees

0.32%

Quantity variation

+/- 1% by volume

Delivery center

Mumbai Port / Jawaharlal Nehru Port Trust (JNPT). The Buyer will be responsible for the freight cost, insurance, import duty and all other taxes & levies on actual basis. Freight and insurance will be paid on actual basis on production of satisfactory documentary evidence from the seller.

Hours of trading

As per directions of the Forward Markets Commission from time to time, currently Mondays through Fridays: 10:00 AM to 11:30 PM 10.00 AM to 11:55 PM (during the US day light saving period) On Expiry Date – at 11:30 PM / 11:55 PM* All Timings are as per Indian Standard Timings (IST) *during US day light saving period

Delivery specification

The buyer and seller shall give intentions of taking/giving delivery through the delivery request window at least three trading days prior to the expiry of the contracts and such intentions can be given during 3

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -12-

Brent Crude Oil Product Note days which would be notified separately. This will be matched by the Exchange for physical delivery as per the process put in place by the Exchange. Delivery logic

Intention matching

Opening of contracts

As per launch calendar

Due date/Expiry date

As per launch calendar

Closing of contract

All open positions for which delivery intentions have not been received or for which delivery intentions have been rendered but remain unmatched for want of counterparty to settle delivery will be cash settled at the Final Settlement Price on the expiry of the contract.

No. of active contracts

As per launch calendar

Price limit

Base daily price fluctuation limit is (+/-) 4%. If the trade hits the prescribed daily price limit, the price limits will be relaxed up to (+/-) 6% without any break/ cooling off period in the trade. In case the daily price limit of (+/-) 6% is breached, then after a cooling off period of 15 minutes, the daily price limit will be further relaxed up to (+/-) 9%. Trade will be allowed during the cooling off period within the price band of (+/-) 6%. In case of price movement in International markets which is more than the maximum daily price limit (currently 9%), the same may be further relaxed in steps of 3%. Member: 20,00,000 barrels or 15% of market wide open interest, whichever is higher. Client: 4,00,000 barrels.

Position limits

The above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange will, on a case to case basis, decide the hedge limits. Please refer to Circular No. NCDEX/TRADING-100/2005/219 dated October 20, 2005.

Special Margins

In case of unidirectional price movement/ increased volatility, an additional/ special margin at such other percentage, as deemed fit by the Regulator/Exchange, may be imposed on the buy and the sell side or on either of the buy or sell sides in respect of all outstanding positions. Reduction/ removal of such additional/ special margins shall be at the discretion of the Regulator/Exchange.

Final Settlement Price

The Final Settlement Price (FSP) in Indian Rupees (INR) will be determined by the Exchange on maturity of the contract. The FSP will be the value of Brent Index published by Intercontinental Exchange (ICE) for a similar corresponding contract expiring on ICE. The

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -13-

Brent Crude Oil Product Note exchange rate to be used as the conversion factor shall be the closing price of benchmark domestic currency derivate exchange on the preceding business day of the launch day and this USD-INR exchange rate will be applicable during the entire tenure of the contract till the date of expiry. Minimum Initial Margin

5%

* 1 Barrel = 42 US gallons = 158.98 liters

Contract launch calendar Contract Launch Date June 20, 2014

17 July 2014 18 August 2014 16 September 2014

Contract Expiry Date 16 July 2014 14 August 2014 15 September 2014 16 October 2014 13 November 2014 16 December 2014

Members and market participants who enter into buy and sell transactions may please note that they need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives, notifications of the Exchange as well as of the Regulators, Governments and other authorities. It is clarified that it is the sole obligation and responsibility of the Members and market participants to ensure that apart from the approved quality standards stipulated by the Exchange, the commodity Brent Crude Oil deposited / traded / delivered through the Approved Storage Facility/Warehouse is in due compliance with all the applicable laws/registrations/licenses as may be required while dealing in the commodity Brent Crude Oil and as laid down by various statutory authorities like Ministry of Petroleum & Natural Gas, Import/Export Regulations, Weight & Measures, Fire Safety norms, Environmental norms etc., as also other State/Central laws and authorities issuing such regulations in this behalf from time to time, including but not limited to compliance of provisions and rates relating to Sales Tax, Value Added Tax(VAT), LBT, Octroi, Excise duty, Stamp duty, Service tax, etc. as applicable from time to time on the underlying commodity of Brent Crude Oil contract offered for deposit / trading / delivery and the Exchange shall not be responsible or liable on account of any non-compliance thereof. Exhibit 2 - Warehouse & Assayer Address Details For the updated list of Warehouse & Assayers kindly refer to the NCDEX Website http://www.ncdex.com/ClearingServices/Clearing_Services_others.aspx

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -14-

Brent Crude Oil Product Note Exhibit 3 - Good / Bad delivery norms No.

Particulars

Good / delivery

1.

Brent Crude Oil quality not meeting futures contract specification.

Bad delivery

2.

Delivery at non approved Storage Facility/ warehouse facility.

Bad delivery

3.

Delivery completed but without sampling & testing / certification / expired validity.

Bad delivery

4.

Delivery without weight/volume certificate.

Bad delivery

5.

Delivery not as per the packaging specification

Bad delivery

6.

Brent Crude Oil weighed/Measured at other than approved Storage Facility/ warehouse weigh bridge / weigh scale/Flow Meter/Measuring Scale. Delivery of Brent Crude Oil found contaminated on visual inspection.

Bad delivery

When sample is not drawn as per sampling norms and not carried out at the time of unloading

Bad delivery

7. 8.

Bad

Bad delivery

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -15-

Brent Crude Oil Product Note Exhibit 4 – Specimen of Brent Crude Oil Testing Report CERTIFICATE OF QUALITY Date : _________

Report no.: _________

NCDEX member/Client name : Commodity : Address & Name of the storage facility/Warehouse: Lorry No. : QUALITY : The results of analysis performed by our laboratory of the samples collected by is stated below : Test Items

Test method

Specification

Test results

The material delivered by the above NCDEX Member is in accordance with the specification provided bearing grade _____________and valid up to (not applicable for Brent Crude Oil). The goods delivered may be accepted / rejected.

Chief Inspector / Authorized Signatory

The contents of this product note are subject to Rules, Byelaws and Regulations of NCDEX as in force from time to time and be read therewith. -16-