| Type of Contract |
Futures Contract Specifications |
| Name of Commodity |
V 797 Kapas |
| Ticker symbol |
NCDEX Trading System |
| Trading System |
KAPASSRNR |
| Basis |
Ex- warehouse Surendernagar (Exclusive of all taxes ) |
| Unit of trading |
1 lot (200 maunds of 20 kg each i.e. 4 MT) |
| Delivery unit |
1 lot (200 maunds of 20 kg each i.e. 4 MT) |
| Quotation/base value |
Rs. Per 20 kg |
| Tick size |
10 paisa |
| Quality specification |
Raw Cotton (Cotton traded as V – 797)
1. Turnout
| Turnout % |
| Cotton Basis |
40% (+/- 2%) |
| Cotton seed |
60% (-/+2%) |
2. Trash content:
Allowable up to 1.25 % max., beyond which discount in the ratio of 1:1 will be applicable
3. Moisture:
Max.8.5% |
| Quantity variation |
+/- 1.25% for total weight of each deliverable lot |
| Premium/Discount |
The seller will get a proportionate premium over every incremental percentage over 42% and similarly a proportionate discount below 38%.The seller can make delivery of goods upto 36% turnout of cotton below which the goods would be rejected. |
| Trading month |
Contract for February, March and April expiry next year will open for trading after approval by the Commission |
| Delivery center |
Surendranagar (Gujarat) |
| Trading hours |
As per directions of the Forward Markets Commission from time to time, currently
Mondays through Fridays : 10:00 AM to 05:00 PM
Saturdays : 10.00 AM to 2.00 PM
The Exchange may vary the above timing with due notice |
| Delivery Specification |
Upon expiry of the contracts, if any seller with open position desires to give delivery at a particular delivery center, then the corresponding buyer with open position as matched by the process put in place by the Exchange shall be bound to settle by taking physical delivery |
| No. of active contracts |
Minimum two contracts |
| Opening of Contracts |
Contract for February, March and April expiry next year will open for trading after approval by the Commission |
| Closing of contract |
All open positions will be settled as per general rules and product specific regulations |
| Price band |
Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price 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 again during the day, no trade trade/order shall be permitted during the day beyond the revised limit of (+/-) 4%. |
| Position limits |
Member: Maximum of 75,000 MT or 15 % of Market Open Position in the commodity, whichever is higher
Client: 25,000 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. Please refer circular no. NCDEX/TRADING-100/2005/219 dated October 20, 2005
Near Month Limit (Applicable from one Month prior to expiry date)
Member Level : Maximum of 15,000 MT or 15 % of total near month Open Position in the commodity, whichever is higher
Client Level : 5,000 MT |
| Special margin |
In case of additional volatility, a special margin of at such other percentage, as deemed fit, will be imposed immediately on both buy and sell side in respect of all outstanding positions, which will remain in force for next 2 days, after which the special margin will be relaxed. |
| Accreditition of Warehouse |
The warehouse should be accredited up to a radius of 50 K.m. from the city / municipal limits of basis and additional delivery centres. |
