Futures Contract Specifications. Updated as on 04 December 2008.
Trading system
NCDEX Trading System
Ticker symbol
CHARJDDEL
Basis
Desi ex-warehouse Delhi inclusive of all taxes and levies
Unit of trading
10 MT
Delivery Unit
10 MT
Quotation/Base Value
Rs. Per Quintal
Tick size
Re 1
Quality specification
Desi Chana
The material should be free of Mathara and Khesari and live infestation
Foreign Matter (Other than Varietal admixture)
1% basis
Green (Cotyledon colour), Immature, Shrunken, Shriveled Seeds
3% basis
Brokens, Splits;
2% basis
Damaged and Weeviled
3% basis (Weeviled 2% max)
Moisture
10% basis
Varietal admixture
3% Max
Kantawalla Chana
The material should be free of Mathara and Khesari and live infestation
Foreign Matter (Other than Varietal admixture)
1% basis
Green (Cotyledon colour), Immature, Shrunken, Shriveled Seeds
3% basis
Broken, Splits
3% basis
Damaged and Weeviled
3% basis (Weeviled max 2%)
Moisture
10% basis
Varietal admixture
3% Max
Quantity Variation
+/-5%.
Delivery centre
Desi Chana to be delivered at Delhi (up to the radius of 50 kms from the municipal limits )
Also deliverable
Kantawalla Chana to be delivered only at Indore (up to the radius of 50 kms from the municipal limits)
Desi Chana can also be delivered at Bikaner (up to the radius of 50 Kms from municipal limit)
Hours of Trading
As per directions of the Forward Markets Commission from time to time, currently -
Mondays through Fridays: 10:00 a.m. to 5:00 p.m. Saturdays: 10.00 a.m. to 2.00 p.m.
The Exchange may vary the above timing with due notice.
Delivery specification
Upon expiry of the contract all outstanding positions will result in 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.
Delivery Logic
Compulsory delivery
No. of active contracts
As per launch calendar
Opening of contracts
Trading in any contract month will open on the 10th day of the month.
If 10th day of the month happens to be a non-trading day, contracts would open on the next trading day
Due date/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
Closing of contract
Upon the expiry of a contract all outstanding open positions would result in compulsory delivery
Price band
Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a cooling off period for 15 minutes. Trade will be allowed during this cooling off period within the price band. Thereafter the price band would be raised by another (+ / -) 1%.
If the price again hits the revised price band (4%) during the day, trade will only be allowed within the revised price band. No trade / order shall be permitted during the day beyond the revised limit of (+ / -) 4%
Position limits
Member-wise: 40,000 MT for all contracts or 15% of the market-wide open position, whichever is higher.
Client-Wise : 10,000 MT
The above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange will, on a case to case basis, decide the hedge limits. Please refer to Circular No. NCDEX/TRADING-100/2005/219 dated October 20,2005
For near month contracts:
The following limits would be applicable from one month prior to expiry date of a contract
Member: Maximum of 8,000 MT or 15% of the market-wide near month open position, whichever is higher.
Client: Maximum of 2,000 MT
Other deliverables at Premium/ Discount
Quality Premium/Discount
Desi Chana
Foreign matter
Chana with Foreign Matter more than 1% acceptable but up to 2% maximum on 1:1 discount which shall be applied to such content above 1% rounded off to the higher 0.5%
Green (Cotyledon colour), Immature, Shriveled Seeds
Chana with Green (Cotyledon colour), Immature, Shriveled Seeds more than 3% acceptable but up to 4% maximum on 2:1 discount which shall be applied to such content above 3% rounded off to the higher 0.5%
Chana with Green (Cotyledon colour), Immature, Shriveled Seeds more than 4% rejected
Brokens, Splits
Chana with Brokens, Splits more than 2% acceptable but up to 3% on 2:1 discount which shall be applied to such content above 2% rounded off to the higher 0.5%
Chana with Brokens, Splits more than 3% rejected
Moisture
Chana with Moisture more than 10% acceptable but up to 12% on 1:1 rebate which shall be applied to such content above 10% rounded off to the higher 0.5%
Chana with Moisture more than 12% rejected
Damaged, Weeviled Seeds
Chana with Damaged, Weeviled Seeds more than 3% (with Weeviled not more than 2%) acceptable but up to 10% maximum (with Weeviled not more than 2% ) at a discount of 2:1 which shall be applied to such content above 3% rounded off to the higher 1%
Chana with Damaged, Weeviled Seeds more than 10% rejected
Kantawalla Chana
Foreign matter
Chana with Foreign matter more than 1% basis acceptable up to 2% maximum on 1:1 discount which shall be applied to such content above 1% rounded off to the higher 0.5%
Green (Cotyledon colour), Immature, Shriveled Seeds
Chana with Green (Cotyledon colour), Immature, Shriveled Seeds more than 3% acceptable up to 4% maximum on 2:1 discount which shall be applied to such content above 3% rounded off to the higher 0.5%
Chana with Green (Cotyledon colour), Immature, Shriveled Seeds more than 4% rejected
Brokens, Splits
Chana with Brokens, Splits more than 3% acceptable up to 5% maximum on 2:1 discount which shall be applied to such content above 3% rounded off to the higher 0.5%
Chana with Brokens, Splits more than 5% rejected
Moisture
Chana with Moisture more than 10% acceptable up to 12% maximum on 1:1 rebate which shall be applied to such content above 10% rounded off to the higher 0.5%
Chana with Moisture more than 12% rejected
Damaged, Weeviled Seeds
Chana with Damaged, Weeviled Seeds more than 3% (with Weeviled not more than 2%) acceptable but up to 10% maximum (with Weeviled not more than 2% ) at a discount of 2:1 which shall be applied to such content above 3% rounded off to the higher 1%
Chana with Damaged, Weeviled Seeds more than 10% rejected
Premium/Discount for Chana delivery at additional delivery centers
The Premium and discount for different locations shall be announced by the Exchange before launching of contract
Special margins
In case of additional volatility, a special margin at such percentage, as deemed fit, will be imposed in respect of outstanding positions, which will remain in force as long as the volatility exists, after which the special margin may be relaxed.
Tolerance limit in Chana
CHANA
Commodity Specifications
Basis
Acceptable quality range as per contract specification
Permissible Tolerance
Desi
Moisture
10% Basis
From 10% to 12% accepted at 1:1
Foreign Matter
1% Basis
From 1% to 2% accepted at 1:1
+/- 0.25%
Green, Immature, Shrunken, Shriveled Seeds
3%
From 3% to 4% accepted at 2:1
+/- 0.25%
Brokens, Splits
2%
From 2% to 3% accepted at 2:1
+/-0.25%
Damaged and Weeviled
3% (Weeviled 2% max)
From 3% to 10% accepted at 2:1
+/-0.75% (+/- 0.5 % Weeviled)
Varietal admixture
3% Max
+/-0.25%
Max Tolerance (for all characteristics)
1.25%
Kantawalla
Commodity Specifications
Basis
Acceptable quality range as per contract specification
Permissible Tolerance
Moisture
10% Basis
From 10% to 12% accepted at 1:1
Foreign Matter
1% Basis
From 1% to 2% accepted at 1:1
+/- 0.25%
Green, Immature, Shrunken, Shriveled Seeds
3%
From 3% to 4% accepted at 2:1
+/- 0.25%
Brokens, Splits
3%
From 3% to 5% accepted at 2:1
+/-0.25%
Damaged and Weeviled
3% (Weeviled 2% max)
From 3% to 10% accepted at 2:1
+/-0.75% (+/- 0.5 % Weeviled)
Varietal admixture
3% Max
+/-0.25%
Max Tolerance (for all characteristics)
1.25%
Note: Tolerance limit is applicable only for outbound deliveries. Variation in quality parameters within the prescribed tolerance limit as above will be treated as good delivery when members/clients lift the materials from warehouse. These permissible variations shall be based on the parameters found as per the immediate preceding test certificate given by NCDEX approved assayer.
