Futures Contract Specifications

Mentha oil

MENTHAOIL

NCDEX Trading System

Ex-warehouse Chandausi (exclusive of all taxes, purchase tax, VAT, sales tax, mandi fee etc ). FSP will be calculated on the contract expiry day by taking weighted average prices of spot market during last three trading days from following Mandis:

Mandi	Weightage
Sambhal	25%
Barabanki	30% (2% will be added to Barabanki Prices)
Chandausi	15%
Rampur	15%
Badaun	7.5%
Bareilly	7.5%

360 kgs

360 Kgs net packed in fully dipped galvanized iron drums of 180 Kgs each. The cost of drum, as approved by the Exchange, will be payable by the buyer

Rs per Kg

Re 0.10 (10 paisa)

Appearance	Liquid
Odour	Strong Minty and Characteristic Pleasant
Colour	Light /Pale Yellow
Solubility in Alcohols	1:4 to 6 volume in 70% alcohol
L-Menthol	68% as per GLC test (Detected by Packed column method)
Terpene	7.5% basis
Ester (As Methyl Acetate)	6% basis
Fat & Oils	Negative
Additional Parameters	Menthol Isomers = 6% maximum
Water & Solid sediments = 0.65% max
Total Menthol Content (TMC) = 70 to 79%
Optical Rotation = -33 degrees to -38 degrees
Refractive Index = 1.42-1.48 (at 25 degree celsius)
Menthofuran = Negative
PH = Neutral
Congealing Point = 21 to 23 degree celsius
Identification = Confirming to BP/USP
Specific Gravity = 0.80 to 0.91 (at 25 degree celsius)
High Boilers = Nil
GC Temperature: Detector temperature = 240 degree Injector Temperature = 240 Degree Oven temperature = Starting 80 degree Temperature Rise = 4 degree per minute It should be free from any admixture such as edible oil, petroleum, mineral oil, sediments etc. In order to check adulteration water test, paper test and alkali test will also be conducted which should confirm to be negative.

+/- 1 kg per drum.

Chandausi

Barabanki, Sambhal, and such other centers as may be notified by the Exchange from time to time.

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

Mondays through Fridays
Trading Hours - 10:00 AM to 05:00 PM

Saturdays
Trading Hours - 10.00 AM to 2.00 PM
The Exchange may vary the above timing with due notice.

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 matches, 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.

The penalty structure for failure to meet delivery obligations will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008.

Trading in a new month contract will open on the 10th day of the month in which 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

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 pay-out 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.

Expiry date of the contract:

Last day of the delivery month. If last day of month 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

Clearing and Settlement of contracts will commence with the commencement of Tender Period by delivery through intention matching arrived at by the Exchange based on the information furnished by the seller and buyer respectively as per the process put in place by the Exchange for effecting physical delivery during the period from E-14 to E-1 prior to expiry. Upon the expiry of the contract all the outstanding open position would result in compulsory delivery.

As per launch calendar

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% and trade will be resumed.

If the price hits the revised price band (4%) again 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%

For Member - Maximum up to 1500 MT or 15% of market-wide open interest whichever is higher
For Clients - Maximum up to 300 MT

Hedge position as indicated vide Commission's letter no. 4/4/2005-NCDEX/COMPL. Dated 4/10/2005
For near month contracts:
The near month limit will be applicable during the last 7 trading days of the expiry of a contract.

Member: Maximum up to 500 MT or 15% of the market-wide near month open position, whichever is higher
Client: Maximum up to 100 MT

Special margin of 10% of the value of the contract shall be applicable whenever there is a rise or fall in price from the first day's closing price beyond 20% and shall be payable by buyer or seller depending on whether prices rise or fall respectively. The margins shall stay in force so long as price stays beyond the 20% limit and will be withdrawn as soon as the price is within the 20% band

Quality discount on L-Menthol-
Above 68% - Premium 1:1
Between 63% and 68% - Discount 1:1
Below 63% - Rejected

Tarpene
Between 7.5% – 9% - Discount 1:1 basis
Above 9% - Rejected

Ester(As Methyl Acetate)
= 6% basis, allowed till 6.5% maximum with 1:1 discount

Discount for Mentha oil acceptance at additional delivery centers
The Premium or discount for different locations shall be announced by the Exchange before launching of contract