Futures Contract Specifications

Silver

SLVPURAHM

NCDEX Trading System

Ex-Ahmedabad inclusive of Custom Duty, exclusive of local sales tax/VAT

30 Kg

30 kg

Rs per Kg of Silver with 999 fineness

Re. 1

Not less than 999 fineness bearing a serial number and identifying stamp of a refiner approved by the Exchange.

List of approved refiners:
www.ncdex.com\downloads\refiners_silver.pdf

+/- 10 per cent at bar level.

Ahmedabad

(within a radius of 50 km from the municipal limits)

New Delhi

Location Premium/Discount as notified by the Exchange from time to time

As per directions of the Forward Markets Commission from time to time, currently) -

Mondays through Fridays:
10:00 AM to 11:30 PM

Saturdays: 10:00 AM to 02:00 PM

On the expiry date, contracts expiring on that day will not be available for trading after 5 PM. The Exchange may vary the above timing with due notice.

Tender Date – T

Tender Period:
Tender period would be of 5 working days during trading hours prior to and including the expiry date of the contract.

Pay-in and Pay-out:
on a 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.

There would be 5 payin & payouts starting T +1 the 5th being the Final Settlement.

Expiry date of the contract:

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 staggered system of 5 Pay-ins and Pay-outs including the 5th 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 will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008.

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 on T + 1 day 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.

Trading in the far month contract will open on the 10th day of the month in which the near month contract is due to expire. If the 10th day happens to be a non-trading day, contracts would open on the next trading day.

As per launch calendar

Base daily price fluctuation limit is (+/-)4%. 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 position limit - 150 MT or 15% of market-wide open position whichever is higher.
Client-wise position limit - 50 MT.

(The above limits will not apply to bona fide hedgers. For bonafide hedgers, the Exchange will, on a case to case basis decide the hedge limits.)

Silver bars of 999 fineness. No premium/ discount for other fineness.

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.