Agri Products > Guar Seeds
 
Click Here - Contract Specifications for contracts expiring in November 2009 and thereafter ( Updated on October 09, 2009 )
Click Here - Contract Launch Calendar ( Updated as on 7 August, 2009 )





Futures Contract Specifications. Updated as on 9 October 2009 ( Applicable to contracts expiring in November 2009 and thereafter )
Type of Contract Futures Contract Specifications
Name of Commodity Guar Seed
Ticker symbol GARSEDJDR
Trading System NCDEX Trading System
Basis Ex- warehouse Jodhpur, inclusive of Sales Tax/VAT
Unit of trading 10 MT
Delivery unit 10 MT
Quotation/base value Rs per Quintal
Tick size Re 1
Quality specification
Whitish 98 % basis
Foreign Matter 0.5% basis
Damaged seed 0.5% basis
Moisture 8 % basis
Quantity variation +/- 2%
Delivery center Jodhpur (up to the radius of 50 Km from the municipal limits)
Additional delivery centres Bikaner, Nokha and Deesa (up to the radius of 50 Km from the municipal limits) with location wise premium/discount as announced by the Exchange from time to time.
Trading hours As per directions of the Forward Markets Commission from time to time, currently -

Mondays through Fridays - 10:00 a.m. to 05:00 p.m.
Saturdays - 10.00 a.m. to 2.00 p.m.


The Exchange may vary the above timing with due notice
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 the 10th day happens to be a non-trading day, contracts would open on the next trading day
Tender Period 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.
Closing of 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 should result in compulsory delivery
Due date/Expiry date 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 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.
Delivery Specification 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 match, 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.
Daily price limit 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 (+/-) 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%.
Position limits Member: 9000 MT or 15% of Market Open Interest whichever is higher.
Client: 3,000 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

For near month contracts: The near month limit will be applicable during the last 7 trading days of the expiry of a contract

Member: 3000 MT or 15% of the market-wide near month open position, whichever is higher
Client: 1000 MT
Quality Allowance Whitish seed

98% basis
below 98 and upto 95%: acceptable at a discount of 1: 0.5
below 95 and upto 90%: acceptable at a discount of 1:1
Below 90% rejected

Moisture

8% basis
acceptable upto 10% at a discount of 1:1 Above 10% rejected

Foreign matter

0.5% basis
Upto 2% acceptable at a discount of 1:1
Above 2% and upto 3% acceptable at a discount of 1:1.5
(‘Foreign matter' means anything other than Guar seed e.g. sand, silica, pebbles, stalks and other seeds)

Damaged seed:

0.5% basis
Above 0.5% and upto 2% acceptable at a discount of 1:0.75

The total of Foreign Matter and Damaged seed should not exceed 4%.
Special margins In case of additional volatility, a special margin at such other 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 Limits for Outbound Deliveries for Guar seed
Specification Basis Deliverable Range Tolerance Limit
Whitish 98 % Upto 90% +/-0.5%
Foreign Matter and Damaged Seed (combined) 1%(0.5% Foreign Matter + 0.5% Damaged Seed) Upto 4% (combined) +/-0.5%(total)
Upper limit on the total of all tolerances 0.75%


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.


Contract Launch Calendar

Contract Launch Month Contract Expiry Month
August 2009 January 2010
August 2009 February 2010
September 2009 March 2010
October 2009 April 2010
November 2009 May 2010
December 2009 June 2010
January 2010 July 2010
February 2010 August 2010
March 2010 September 2010
April 2010 October 2010
May 2010 November 2010
June 2010 December 2010






Members and market participants who enter into buy and sell transactions may please note that they need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives, notifications of the Exchange as well as of the Regulators, Governments and other authorities.

Members and market participants trading on the Exchange in the commodity contracts shall be deemed to be aware of applicable laws and amendments thereof from time to time, including provisions and rates relating to the sales tax, value added tax APMC Tax, Mandi Tax, octroi, excise duty, stamp duty, etc., applicable on the underlying commodity of any contract offered for trading.

The Exchange shall not be responsible or liable on account of non compliance by any of the members and market participants of any such applicable laws or any amendments thereof including not being aware of rates of taxes, levies, etc., on the underlying commodity of any contract offered for trading.