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Futures Contract Specifications for V- 797 Kapas
Type of Contract Futures Contract Specifications
Name of Commodity V 797 Kapas
Ticker symbol KAPASSRNR
Trading System NCDEX Trading System
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 physical 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 As per launch calendar
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 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 again during the day, no trade trade will 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, whichever is higher
Client:25,000 MT for all contracts

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 of the contract)

Member Level:Maximum of 15,000 MT or 15 % of market wide near month Open Position, 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 centers.


Contract Launch Calendar
Contract Launch Month Contract Expiry Month
April 2010 February 2011
March 2011
April 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.