Futures Contract Specifications for Pepper.
|
| Name of commodity |
Pepper |
| Ticker symbol |
PPRMLGKOC |
| Trading system |
NCDEX Trading System |
| Hours of Trading |
As per directions of the Forward
Markets Commission from time to time
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. |
| Basis |
Malabar Garbled 1
ex designated warehouse Kochi exclusive of all taxes |
| Unit of trading |
1000 kgs (=1 MT) |
| Delivery Unit |
1000 kgs (=1 MT) |
| Quotation/Base Value |
Rs per Quintal |
| Tick size |
Re 1 |
| Price Band |
Daily price limit
will be (+)/(-)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 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%.
|
| Quality specification |
Light pepper 2% Max
Other matter 0.5% Max
Moisture 11% Max from November to April
11.5%
Max from May to October |
| Quantity variation |
+/- 2% |
| No. of active contracts |
As per the launch
calendar below |
| Delivery center |
Kochi (within a radius of 50 km
from the municipal limits) |
| Additional Delivery
centers |
Calicut, Trissur (within
a radius of 50 km from the municipal limits)
Location Premium/Discount as notified by the Exchange from time to
time |
| Delivery Logic |
Compulsory delivery
|
| Opening of contracts |
Trading in any contract
month will open on the 10th 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 contracts |
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. |
| 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. |
| Position limits |
Member: 3000
MT for all contracts or 15% of market wide open interest, whichever
is higher.
Client: 900 MT
(For hedge limits refer circular no. NCDEX/TRADING-
100/2005/219 dated October 20, 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:1000MT or 15% of market wide open interest
in near month whichever is higher
Client: 300 MT |
| Quality Premium/Discount |
None |
| Special Margin |
Special margin of 4% of the value
of the contract will be levied whenever the rise or fall in price
exceeds 20% of the 90 days prior settlement price. The margin will
be payable by buyer or seller depending on whether price rises or
falls respectively. The margin shall stay in force so long as price
exceeds the 20% limit and will be withdrawn as soon as the price is
within the 20 % band |
|
Tolerance limit of Commodity: PEPPER
| Specification |
Basis |
Acceptable
quality range |
Permissible Tolerance |
| Light pepper |
2% Max |
- |
+/- 0.2% |
| Other matter |
0.5% Max |
- |
- |
| Moisture |
11% Max with a tolerance of 0.5%
from May to October |
- |
+/- 0.5% (for delivery out during
May-January 12%, February to April -11.5%) |
| Max
Loss for all the characteristics |
+/-1.00% |
|
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.
Pepper Launch calendar for all the contracts expiring
in the year 2010 :-
| Contract Launch Month |
Contract Expiry Month |
| July 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 |
|
Contract Launch Calendar of Pepper :-
| Contract Launch Month |
Contract Expiry Month |
| August 2010 |
January 2011 & February 2011 |
| September 2010 |
March 2011 |
| October 2010 |
April 2011 |
| November 2010 |
May 2011 |
| December 2010 |
June 2011 |
| January 2011 |
July 2011 |
| February 2011 |
August 2011 |
| March 2011 |
September 2011 |
| April 2011 |
October 2011 |
| May 2011 |
November 2011 |
| June 2011 |
December 2011 |
|
|
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.
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