................................................................................................................
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 2
Access to individual information on internet (NCOMCONNECT) ................................. 5 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 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19
Proforma - Transaction Statement ............................................................... 51 Proforma - NCDEX Commodity Deposits - Revalidation Form........................... 52 Proforma - Physical Delivery Request Form / Remat Request Form .................. 53 Proforma - Settlement Calendar .................................................................. 57 Proforma - Account Transfer Form ............................................................... 59 Proforma - Delivery-Out Form ..................................................................... 63 Proforma - Letter from CMs for Opening of Early Pay-in A/c at CDSL ............... 64 (A) An illustration -Sequence of Events in Sales Tax Settlement ...................... 66 Proforma - Intersettlement Form ................................................................. 68 Proforma - Sales Tax Invoice ...................................................................... 68 Sampling Request Letter ............................................................................ 69 Bar number wise details of Silver for Delivery Pay-in and Pay-out.................... 69 On the letter head of Member ..................................................................... 73 Complaint against Trading and Clearing Members of NCDEX ........................... 75 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 email at
[email protected]
•
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 Identification Number (CMID)
o
Membership letter given by NCDEX.
allocation
of
Clearing
Member
•
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
[email protected]
•
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/TRADING086/2008/216 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. 2.
3.
4.
5.
6.
7.
The electronic credits of SILVER only in CDSL accounts will be accepted and delivered in settlement of transactions on the Exchange. 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. 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. 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. 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. 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. 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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8.
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 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 payout 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 •
7.5
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. 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 TypeSettlement 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 deliveryout 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) ii) iii)
iv)
v) vi) vii) viii)
ix)
x)
xi)
‘Early Pay-in’ of agri commodities prior to expiry will get exemption from the applicable preexpiry margins. For availing the exemption, Members may make ‘Early pay-in’ from one day prior to the day when pre-expiry margins are applicable. 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. 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. Members should have open position in the commodity for which Early pay-in is made. The Early pay-in should be made for a valid ISIN for the settlement. Mark To Market (MTM) settlement will continue be done for the outstanding positions for which Early pay-in has been given before expiry. 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. 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. 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. 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.
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• •
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/CLEARING001/2008/002 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.
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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 communicated to the Exchange;
from
the
agents
before
the
same
is
•
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.
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•
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
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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
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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.
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14
Customer Service Group
In case of disputes the Members & their constituents should contact the CSG group 14.1 Clearing & Settlement Schedule
Demat request *
On submission of all documents to the warehouse and payments to assayers, credit in beneficiary account within 7 days of fresh deposit
Revalidation request *
On submission of all documents to the warehouse and payments to assayers, credit in beneficiary account within 7 days of revalidation request
Remat request * *
Physical delivery within 2 days of tendering remat request at the warehouse under normal circumstances
Assayers certificate* Monthly warehouse bill from DPs Receipt / payment of sales tax amount
4 days of request and payment of assayers fees By 10th of the subsequent month On Sales tax Settlement date, on due submission of SL12 file to the Exchange
Issuance of Sales/Excise invoices by sellers
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
Receipt of Sales/Excise invoices by buyers
The buyers would receive the sales invoices within 17 days of expiry (E + 17) - By 7 th of next month
Reporting of non-receipt of valid Sales/Excise invoices to the Exchange
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
In the event of non-issuance of settlement related documents, debit of Sales tax / Excise / H forms amounts Issuance of H-Forms
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
Reporting of non-receipt of H Forms
If not received within 60 days of expiry, the same should be reported to the Exchange within the next 5 days
Penalty for non-issuance of settlement related documents Training request
Rs.5,000/= per instance per month of delay Within 15 days of first time of activation
* Except cotton ** Subject to quantity & actual deliveries happening at warehouse As per Annexure 15.17
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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
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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 (To be filled by Participant) Date : 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 specify)
NRI-Non-Repatriable
Others (please
Sole/First Holder’s Details RAJESH KUMAR Name (Mr./Ms.) Name of Father/Husband Local / Permanent Address Correspondence Address
PANKAJ KUMAR Fortune Towers , Bandra Kurla Complex , Mumbai Pin Code
4
0
0
0
5
1
Fortune Towers , Bandra Kurla Complex , Mumbai Pin Code
Telephone No.
12345678
Fax Number Occupation
12345678
Mobile No. E-mail ID:
123456789
SMS facility
[email protected] MAPIN 1 2 3 4 5 ID:
Yes √ 6
No
7
8
Other Holder Details Second Holder NA Name (Mr./Ms.) Name of Father/Husband Address Pin Code Telephone No.
Mobile No. E-mail ID: MAPIN ID:
Fax Number Occupation Third Holder Name (Mr./Ms.) Name of Father/Husband Address
SMS facility
NA
Pin Code
Page 39 of 79
Yes
No
9
Telephone No.
Mobile No. E-mail ID: MAPIN ID:
Fax Number Occupation
Address for communication / Corporate Benefits (Default option is Local Address)
SMS facility
Yes
No
Local / Permanant Address Correspondence Address / Foreign Address
Guardian Details (In case the Sole Holder is a minor) Name (Mr./Ms.) Relationship any) Address
(if
Pin Code Date of Birth (of minor)
D
D
M
M
Y
Y
Y
Y
In Case of NRIs Foreign Address
RBI Reference No. Bank Details Bank Sub-type
RBI Approval Date
Savings Account √
D
D
M
M
Y
Y
Y
Y
0
0
0
5
1
Current Account
Bank Account No. Bank Name
1234567890
Branch Address
Bandra Kurla Complex, Mumbai
ICICI Bank Ltd
9-Digit Code Number of the Bank and branch appearing on the MICR cheque issued by the Bank
1
2
Pin Code
4
3
5
4
6
7
8
9
Financial Details P.A.N. / G.I.R. Sole/First Holder Second Holder
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No.
IT Circle / Ward / District No.
Third Holder Guardian (In case of minor) Standing Instructions I/We authorise you to receive credits automatically into my/our account. Account to be operated through Power of Attorney (PoA)
Yes
No
Yes
No
Please attach recent passport size photographs in the space provided below: Second Holder Third Holder Sole/First Holder
Signature across Photograph
Signature across Photograph
Signature across 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) Sole/First Holder (Mr./Ms.) Second Holder (Mr./Ms.) Third Holder (Mr./Ms.) Guardian (in case of minor) (Mr./Ms.)
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Signature(s)
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 (in case of minor)
D D M M Y Y Y Y
Signature Nominee
of
Name of Guardian (Mr./Ms.) (in case Nominee is a minor) Address of Guardian
Pin Code Signature of Guardian
Photograph of Nominee Signature of Nominee across Photograph
Signature of two Witnesses Name 1.
Photograph of Guardian (in case of minor) Signature of Guardian across Photograph
Address
2.
(To be signed by the applicant only in case of nomination)
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Signature with date
______________________________ _____________________________ (Sole/First Holder) (Third Holder)
______________________________ (Second 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, Selfdeclaration 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,
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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
X
Body Corporate
FI
Bank
FII
Trust
OCB
Others (please specify)
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Client Details Name of Corporate
PQR Trading Pvt. Ltd.
(Sole/First Holder) Registered Address
Office
Fortune Towers, Bandra-Kurla Complex, Mumbai
Pin Code Correspondence Address (if different) Pin Code Telephone No.
12345678
Fax No.
12345678
Other Holder Details Second Holder Name
Name Father/Husband
of
Address
Pin Code Occupation
Third Holder Name
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4
0
0
0
5
1
Name Father/Husband
of
Address
Pin Code Occupation In Case of FIIs/OCBs/Others (as may be applicable) Foreign Address
RBI No.
Reference
RBI Date
Approval
SEBI Registration No. (for FIIs) Bank Details Bank Account No.
123456
Bank Name
ICICI Bank Ltd.
Branch Address
Bandra-Kurla Complex
Pin Code
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4
0
0
0
5
1
9-Digit Code Number of the Bank and branch appearing on the MICR cheque issued by the Bank Financial Details IT Circle / Ward / District No.
P.A.N. / G.I.R. No. Sole/First Holder
ABCDE1234G
Second Holder Third Holder Standing Instructions
We authorize you to receive automatically into our account
credits
Yes
No
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.
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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.
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===================================================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
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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:
Truck No.
No. of bags
Net (MT)
weight 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:
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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_______ Deposit: 11 am Name and location of the warehouse
XYZ,JODHPUR
Name of the Depositor
Rajesh Kumar
Address of the depositor
Jodhpur
For the account of
Rajesh Kumar
Time
of
(beneficiary name) 15.4.1.4.1 Cli ent Id
15.4.1.4.2
Client Name
1 0 0 0 0 0 0 1 Rajesh Kumar Details of commodity Demat account to be credited with
15.4.1.4.3 DP Id
15.4.1.4.4
DP Name
I N 3 0 0 X X X Xyz Ltd. 15.4.1.4.4.1 Details of commodities deposited Details of commodities being deposited
Qty. in Metric tones / Kgs. / (Net weight accepted inside the warehouse)
No. of bags / units/ lots /Packages (for grains)
GUAR
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10 MT
100
15.4.1.4.4.1.1 Re marks, if any
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)
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Seal
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 Name(s) holders
10000001 of
Category
Beneficiary
Status
Active
Rajesh Kumar
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
Opening balance 05.12.2005
555555
Debit
Balance 10
10
By Corporate Action Closing balance
Depository Participant’s Seal & Initials
Page 53 of 79
20
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
Commodity name
GUAR GUM
Grade
1111
Qty in units (MT)
5
Assayer remarks
Ref
No.
(to be filled in warehouse after testing)
Expired on
15.12.2004
and by re-
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
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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
Account Holder Name
Rajesh Kumar
Name commodity/metal
of
0
I
Unit of Measurement
Metric Ton
Quantity to be delivered (in figures)
1
(Integer) (And decimal) Signature(s) First/Sole Holder RKUMAR Second Holder Third Holder
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0
0
0
0
1
Guar Gum
C-Id
(in words)
0
N
0
Ten Only
0
0
0
0
0
0
1
0
5
.
6
Participant Authorization Received the above mentioned request for physical commodities/metals from the account holder mentioned above.
delivery
of
the
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 Date:
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(Seal)
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 Delivery Logic
Early Delivery Contracts
Symbol
Physical Settlement
Premium /Discount Settlement and Close Out
Sales Tax Settlement
G
A
B
Compulsory Delivery Contracts
G
A
B
Intention
G
A
B
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Expiry Date
Tender / Delivery Intention Marking Start Date End date
PPRMLGKOC RBRRS4KOC STEELLONG
20-Apr-12 20-Apr-12 20-Apr-12
07-Apr-12 07-Apr-12 07-Apr-12
20-Apr-12 20-Apr-12 20-Apr-12
BARLEYJPR CASTORSEED CHARJDDEL CHLL334GTR COCUDAKL DHANIYA GOLD100AHM JEERAUNJHA MAIZE POTATO PVC RMSEED SUGARM200 TMCFGRNZM WHTSMQDELI BRENTCRUDE
20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 13-Apr-12
18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 18-Apr-12 07-Apr-12
20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 20-Apr-12 10-Apr-12
Matching Contracts
CRUDEOIL SILVER5AHM SYOREFIDR SILVERINTL RBDPALMOLN SHANKRKPAS
19-Apr-12 20-Apr-12 20-Apr-12 27-Apr-12 30-Apr-12 30-Apr-12
12-Apr-12 11-Apr-12 11-Apr-12 21-Apr-12 21-Apr-12 21-Apr-12
16-Apr-12 13-Apr-12 13-Apr-12 24-Apr-12 24-Apr-12 24-Apr-12
Sellers Option Contracts
SYBEANIDR
20-Apr-12
11-Apr-12
13-Apr-12
K
COPPER
30-Apr-12
24-Apr-12
26-Apr-12
KAPASSRNR
30-Apr-12
21-Apr-12
24-Apr-12
Staggered Delivery Contracts
N
SILVER
03-May-12
27-Apr-12
03-May-12
A
B
A
B
2. Settlement Calendar Physical Settlement Tender / Expiry Date
STL Type
07-Apr-12 09-Apr-12 10-Apr-12 11-Apr-12 12-Apr-12 13-Apr-12 16-Apr-12 17-Apr-12 18-Apr-12 19-Apr-12 20-Apr-12 28-Apr-12 30-Apr-12
Premium Discount & Close Out Settlement
NSDL Market Type
STL No.
Delivery and Funds Pay-in and Pay-out
STL Type
G G G G G G G G G G G G G
T+2 T+2 T+2 T+2 T+2 T+2 T+2 T+2 T+2 T+2 T+2 T+2 T+2
2012044 2012045 2012046 2012047 2012048 2012049 2012050 2012051 2012052 2012053 2012054 2012055 2012056
10-Apr-12 11-Apr-12 12-Apr-12 13-Apr-12 16-Apr-12 17-Apr-12 18-Apr-12 19-Apr-12 20-Apr-12 23-Apr-12 24-Apr-12 02-May-12 03-May-12
20-Apr-12 30-Apr-12 01-May-12
K K K
T+2 SO T+2 SO T+2 SO
2012007 2012008 2012009
27-Apr-12 30-Apr-12 02-May-12 03-May-12
N N N N
T+1 T+1 T+1 T+1
2012014 2012015 2012016 2012017
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Sales Tax Settlement
STL No.
Funds Pay-in and Pay-out
STL Type
STL No.
Funds Pay-in and Pay-out
A A A A A A A A A A A A A
2012045 2012046 2012047 2012048 2012049 2012050 2012051 2012052 2012053 2012054 2012055 2012056 2012057
10-Apr-12 11-Apr-12 12-Apr-12 13-Apr-12 16-Apr-12 17-Apr-12 18-Apr-12 19-Apr-12 20-Apr-12 23-Apr-12 24-Apr-12 02-May-12 03-May-12
B B B B B B B B B B B B B
2012045 2012046 2012047 2012048 2012049 2012050 2012051 2012052 2012053 2012054 2012055 2012056 2012057
13-Apr-12 16-Apr-12 17-Apr-12 18-Apr-12 19-Apr-12 20-Apr-12 23-Apr-12 24-Apr-12 25-Apr-12 26-Apr-12 27-Apr-12 07-May-12 08-May-12
24-Apr-12 03-May-12 03-May-12
A A A
2012055 2012057 2012057
24-Apr-12 03-May-12 03-May-12
B B B
2012055 2012057 2012057
27-Apr-12 08-May-12 08-May-12
30-Apr-12 02-May-12 03-May-12 04-May-12
A A A A
2012058 2012056 2012057 2012059
30-Apr-12 02-May-12 03-May-12 04-May-12
B B B B
2012058 2012056 2012057 2012059
04-May-12 07-May-12 08-May-12 09-May-12
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
13-Apr-12 19-Apr-12 27-Apr-12 30-Apr-12
Symbol
BRENTCRUDE CRUDEOIL SILVERINTL COPPER
FSP declaration date
16-Apr-12 20-Apr-12 28-Apr-12 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.
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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.
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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-BPId
IN1234 56
CM Name
PQR Trading
Marke t Type
XX
Settle ment No.
ISIN
Security Name
20040 07
INC00000201 3
Quanti ty (In Figures)
NCDEX KERALA ST.WAREHOUSIN G CORP KOCHI PPRMLGKOC PEPPER METRIC TON 15JN05 MALABAR GAR
10
I n (In Words) be DP Quantity
Ten Only
For Off-Market Trades (Receiver Details) N/A DP Id
DP Name
Execution Date (dd-mm-yyyy)
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Client ID
2
7
1
2 2
ISIN
0
0
Security Name
4
Quantity
Quantity
(In Figures)
(In Words)
No. of Instructions (in figure) ______________ Depository Participant Stamp, Date & Time
(in words) ______________________________ __
Instructions: 1. To be submitted in duplicate for acknowledgement. 2. In case of joint holdings, all joint holders must sign. 3. Please
Page 62 of 79
strike
off
unused
rows.
1____RKUMA ___ 2______ 3_________
Authorized Signatory(ies
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) INC000002013 NCDEX KERALA ST.WAREHOUSING CORP 10 KOCHI PPRMLGKOC PEPPER METRIC TON 15JN05 MALABAR GAR
Market Type:
XX
Settlement No.:
( To be filled by DP)
Ten Only
2 0
0
4
0
0
7
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
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Execution Date:
2 4
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 Code
Member
Clearing 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
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Name: Designation:
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15.12
(A) An illustration -Sequence of Events in Sales Tax Settlement
Commodity Chana having E+2 Settlement Cycle & E+5 Settlement Contract Expiry Date (20th)
days for Sales Tax
Submission of Delivery / Receipt Requests Allocation of Delivery / Receipt Positions downloading of reports for clearing Members
E+2 Settlement Date (22nd)
Next Working day Settlement date (23rd)
after
&
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. Submission of Sales Tax information by receiving 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 Settlement date (24th)
after
Submission of Sales Tax information by delivering clearing Members and submit the Sales Tax information in WEB NCFE on or before 15.00 Hrs. Status of information submitted by delivering 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.
3 working days after Settlement (25th)
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.
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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 Settlement date (5th)
Submission of Sales Tax information by receiving clearing Members and submitting the same to the Exchange by WEB NCFE on or before 15.00 Hrs.
after
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 Settlement date (6th)
after
Submission of Sales Tax information by delivering clearing Members in WEB NCFE on or before 15.00 Hrs. SL 01 File is generated for all the Members giving details of Sales tax amounts at the client level. Only available to members who have sales tax obligations
3 working days after Settlement (7th)
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.
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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:
TO
FROM Market Type
T+2 SO
Settlement No
2
ISIN
Security Name
INC
XXXXXX
0
0
Market Type 5
Quantity (in figures)
0
1
3
Settlement No
Quantity (In Words)
XX
Execution Date
Stamp, Date & Time
15.14
Authorised Signatory (ies)
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 name & Address
Seller Member TMID/CMID Buyer
Buyer
Member
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Instruction (To be fille
name & Address Warehouse Name Location
15.15
Member TMID/CMID
and
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 *:
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Signature and seal of warehouse Manager * Mandatory Fields
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15.16 out
Bar number wise details of Silver for Delivery Pay-in and Pay-
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
Total Yours truly,
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Pay-in obligation Delivered Quantity
(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 Date:
On the letter head of Member __________
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
Fill relevant details below
Remat
Warehouse (Please tick) 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: _______________
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Name and signature of authorized signatory
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 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
Mr. / Ms:
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
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Signature of the complainant
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 /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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