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Cotton October 2014 Contract Onwards

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contract specification
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    Contract Specifications of Cotton (29mm) Symbol COTTON Description COTTONMMMYY Contract Listing Contracts are available as per the Contract Launch Calendar Contract Start Day 1st day of contract launch month. If 1st day is a holiday then the following working day. Last Trading Day Last calendar day of the contract month. If last calendar day is a holiday or Saturday then preceding working day Trading Period Mondays through Fridays Trading Session Monday to Friday: 10.00 a.m. to 11.30 /11.55 p.m. Trading Unit 25 bales Quotation/Base Value Rs. Per bale (of 170 Kg) Maximum Order Size 1200 bales Tick size (minimum price movement) Rs.10 Price Quote Ex-Warehouse Rajkot (Within 100 km radius) excluding all taxes, duties, levies, charges as applicable. Daily Price Limits The base price limit will be 3%. Whenever the base daily price limit is breached, the relaxation will be allowed upto 4% with a cooling off period of 15 minutes Initial Margin Minimum 5% or based on SPAN whichever is higher  Additional and/ or Special Margin  An additional margin (on both buy & sell side) and/ or special margin (on either buy or sell side) at such percentage, as may be deemed fit, will be imposed by the Exchange/ FMC, as and when is necessary, in respect of all outstanding positions Maximum Allowable Open Position For individual clients: 65,000 bales   to be revised as per new order dt. 3 rd  July 2013. For a member collectively for all clients: 1,95,000 bales or 15% of the market wide open position whichever is higher. For Near Month Delivery For individual clients: 13,000 bales For a member collectively for all clients: 39,000 bales or 15% of the market-wide open position whichever is higher. Delivery Unit 100 bales (170 quintals* or 48 candy approx.) *+/- 7% Basic Delivery Centre Rajkot (Gujarat)  Additional Delivery Centre 1) Yavatmal / Aurangabad (Maharashtra) 2) Kadi (Gujarat) 3) Bhatinda (Punjab), Sirsa (Haryana) 4) Sriganganagar (Rajasthan) 5) Sendhwa (Madhya Pradesh)    6) Warangal (Andhra Pradesh) The discounts with respect to transportation charges from each of the additional delivery centres to the basic delivery center (Rajkot) will be announced by exchange before the launch of contract. Quality Specifications on Physical Inspection and HVI Mode Goods should lie within the Tenderable Range according to defined quality specifications. Outlaying goods will not be accepted for delivery. Ginning Pattern: Roller Ginned Cotton. Saw Ginned Cotton will be accepted with discount. 1) Basis Grade : Standardized grade as per HVI Middling 31-3, accepted up to 41-3 with premium/ discount 2) Staple 2.5% span length - 29 mm (+/- 2mm) with premium/discount. Below 27 mm reject and above 31 mm no premium. 3) Micronaire (MIC) : 3.6 – 4.8 +/-0.1 with discount. Below 3.5 and above 4.9 reject. 4) Tensile Strength : 28 GPT Minimum, No premium or discount 5) Trash : 3.5% +/-1.5% with premium and discount. More than 5% reject. 6) Moisture : Up to 8.5%. Acceptable up to 9.5% at discount. The premiums/discounts with respect to quality specifications (in respect to Ginning Pattern, Grade, Staple, Micronaire, Trash and Moisture) will be announced by exchange before the launch of contract. Physical Condition of Bales  All bales of the lot should be in good condition – should be free from oil/ ink stains penetrating the bale or damaged in any other way. It should have all the proper markings in form the unique PRN for identifying the individual bale as well as a total lot. The label should give details of variety, weight and crop year. The bale must be fully covered with hessian cloth/cotton fabric and no cotton shall be exposed. The bales must be securely strapped with iron bailing hoops / plastic straps. Crop conditions Only current season Indian crop is deliverable Delivery Period Margin 25% Due Date Rate The Due Date Rate (DDR) shall be arrived at by taking the simple average of the last three trading days polled spot prices, viz., E -0 , E -1 , & E -2  of Rajkot (within 100 Km radius). In the event of the spot prices for any one of the E -1  and E -2  is not available the spot price of E -3  would be used for arriving at the average. In the event of spot prices are not available for both E -1  and E -2 , then the average of E -0  and E -3  (two days) would be taken. If all the three days’ prices, viz., E -1 , E -2  and E -3  are not available, then only one day’s price, viz., E -0  will be taken as the DDR. Delivery Logic Compulsory Delivery    Delivery and Settlement Procedure of Cotton Delivery Logic Compulsory Delivery Tender Period Last 5 working days’ of the contract expiry and 1 st  working day after expiry of the contract Delivery period (including delivery pay-out of commodities) Two working days’ after expiry of the contract Tender notice / Delivery Pay-in The Seller shall submit the Warehouse Receipts (duly endorsed & signed by the depositor & the Member) and valid quality certificate/s issued by quality certifying agency.  All outstanding long and short positions shall be marked for delivery at expiry of the contract Mode of Communication Fax / Courier Tender Period Margin 3% incremental margin for last 5 working days’ of the contract on all outstanding positions in addition to the Initial, Special and/ or any other additional margin, if any. Delivery Period Margin Delivery Period Margin of 25% will be levied on the long and short positions marked for delivery Tender and Delivery Period Margin Exemption Sellers are exempted from payment of margin, if goods are tendered during tender days of the contract month with all the documentary evidences. Delivery allocation --Date --Rate On Expiry date of the contract  At delivery order rate(DDR i.e. final settlement price) Delivery Pay-in of Commodities E+1 working day by 5.00 p.m. (E = Expiry date). Delivery Pay-out of Commodities E+2 working days by 5.00 p.m. Pay-in of Funds E+2 working days by 11.00 a.m. Pay-out of Funds E+2 working days after 2.00 p.m. Penal Provision I  – Seller Default   A. If a seller member, having open position on expiry of the contract, fails to deliver the goods, as specified in the contract specifications, along with valid quality certificate/s, on or before the scheduled delivery pay-in time, it shall be deemed as seller’s failure to fulfill the delivery obligation. B. Penalty at rate of 3% of DDR and difference between the DDR and average of the three highest last spot prices of the five succeeding days after expiry of the contract (E+1 to E+5 days), if the average price so determined is higher than DDR shall be imposed on the defaulting seller. C. Out of the penalty of 3%, the buyer (counter party to such defaulting seller) will get 1% and the full difference amount, if any, determined as “difference between DDR and average of three highest last spot prices….” (referred in B above). while 1.75% will go to IPF and the balance 0.25% to the Exchange    II  – Buyer Default  A. The buyer shall have to compulsorily take delivery of the goods allocated on expiry of the contract and, the amount due from the buyer for delivery obligation shall be sent for debit as funds pay-in on scheduled pay-in day. B. Failure to discharge the pay-in amount on scheduled pay-in day will be treated as pay-in default of the buyer, which shall lead to deactivation of the trading terminal/s of the buyer member. C. The Exchange, as deems appropriate, shall have the right to sell/dispose the goods through online auction   (or through any other appropriate mechanism as and when required) on account of such defaulting buyer in one or more tranches, and the buyer shall be liable for all outstanding dues and/or financial losses arising out of auction/disposal, including any costs, charges, close out charges, penalties etc. as provided in relevant Rules, Bye-laws and Business Rules of the Exchange from time to time and also other disciplinary measures  Taxes, Duties, Cess and Levies  All other charges, levies, taxes or Cess applicable at the delivery center (excluding mandi tax/cess) will be payable by the buyer in addition to the delivery order rate/final Settlement Price. In case of Inter-State movement, buyer shall be liable for other applicable charges and also has to submit requisite forms or pay CST as applicable. Post lifting delivery, all charges are borne by the buyer. Due Date Rate The Due Date Rate (DDR) shall be arrived at by taking the simple average of the last three trading days polled spot prices, viz., E -0 , E -1 , & E -2  of Rajkot (within 100 Km radius). In the event of the spot prices for any one of the E -1  and E -2  is not available the spot price of E -3  would be used for arriving at the average. In the event of spot prices are not available for both E -1  and E -2 , then the average of E -0  and E -3  (two days) would be taken. If all the three days’ prices, viz., E -1 , E -2  and E -3  are not available, then only one day’s price, viz., E -0  will be taken as the DDR. Odd lot Treatment Delivery will be marked and issued in multiples of delivery lot only. Hence, in case of any net odd lot position outstanding (after adjusting deliverable delivery lots), of either buyer or seller, it shall be treated as delivery default and penal provisions as mentioned in Rules, Bye-laws and Business Rules shall be applicable. Warehouse, Fumigation, Insurance etc. -Borne by the Seller up to commodity pay-out date. -Borne by the Buyer after commodity pay-out date. Buyer’s option for lifting of delivery Buyer will not have any option about choosing the place of delivery and will have to accept the delivery as per allocation made by the Exchange. Delivery Centre Deliveries can be issued from the Exchange approved warehouse/s at Delivery Centre at Rajkot (Within 100 km. radius from the municipal limits) and/or any additional delivery centre prescribed in the Contract.
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