Futures Contract Specifications

Gold

GLDPURINTL

NCDEX's Trading System

Ex-Ahmedabad inclusive of Customs Duty and exclusive of Sales Tax/VAT/Octroi

1 kg

1 kg

Rs per 10 Grams of Gold with 995 fineness

Re 1

Not more than 999.9 fineness bearing a serial number and identifying stamp of a refiner approved by the Exchange.

List of approved refiners is available at :
www.ncdex.com\downloads\refiners_gold.pdf

None

Ahmedabad

As per directions of the Forward Markets Commission from Time to Time, currently:

Mondays through Fridays – 10:00 AM to 11:30 PM / 11:55 PM *
Saturdays – 10:00AM to 02:00 PM
Expiry Date – at 11:30 PM / 11:55 PM *

All timings are as per Indian Standard Timings (IST)
*during US day light saving period
The Exchange may change the above timing with due notice.

Last trading day of the contract month

If last day happens to be a holiday, a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange

The buyer and seller shall give intentions of taking/giving delivery through the delivery request window at least three trading days prior to the expiry of the contracts and such intentions can be given during 3 days which would be notified separately. This will be matched by exchange for physical delivery as per the process put in place by the Exchange.

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

The Final settlement price will be calculated on the last trading day based on International spot price at RBI reference rate. The detailed calculation is as illustrated below :

1. International spot price will be added by 1 US$ as bank premium and then will be multiplied by 32.1507425 for calculating the equivalent of per Kg price from per ounce price. This is the price of 1 Kg of Gold in US$ of 999 purity.
2. The price arrived from step 1 is multiplied by 0.995 to get the gold price in US$ for 995 purity equivalent
3. Price arrived after step 2 will be multiplied by RBI reference rate on the day of expiry. This gives the price of 1 Kg Gold of 995 purity equivalent in INR duty unpaid.
4. The price arrived after step 3 is divided by 100 to get the Gold price for 10 Gms of 995 purity equivalent.
5. Price arrived from step 4 is added by applicable Customs Duty on 10 Gms
6. The price arrived after step 5 is rounded to nearest rupee
   

New contracts would be launched on 10th of the launch months as per schedule given in contract launch calendar, if 10th happens to be a holiday the contract would be launched on the next trading day.

As per launch calendar

Base daily price fluctuation limit is (+/-)3%. If the trade hits the prescribed base daily price limit, the limit will be relaxed up to (+/-)6% without any break/ cooling off period in the trade. In case the daily price limit of (+/-)6% is also breached, then after a cooling off period of 15 minutes, the daily price limit will be further relaxed up to (+/-) 9%. Trade will be allowed during the cooling off period within the price band of (+/-)6%.
In case of price movement in International markets which is more than the maximum daily price limit (currently 9%), the same may be further relaxed in steps of 3% with the approval of FMC.

Member wise : 6 MT or 15% of market wide open position whichever is higher – For all Gold contracts combined together.
Client-wise : 2 MT – For all Gold contracts combined together.

The above limits will not apply to bonafide hedgers. For bonafide hedgers the Exchange will decide the limits on a case-to-case basis.

Gold bars of 999.9 / 995 fineness
A premium will be given for fineness above 995. The settlement price for more than 995 fineness will be calculated at (Actual fineness/995) * Final Settlement Price. Premium of 0.49% would be given for gold delivered of 999.9 purity.

In case of additional volatility, a special margin at such other percentage, as deemed fit by the Regulator/Exchange, may be imposed on either the buy or the sell side in respect of all outstanding positions. Removal of such Margins will be at the discretion of the Regulator/Exchange.

In addition to the above margins the Regulator/Exchange may impose additional margins on both long and short side at such other percentage, as deemed fit. Removal of such Margins will be at the discretion of the Regulator/Exchange.