Customer Services >  Frequently Asked Questions

Sr No. Description Updated On (.pdf)
1 Membership February 20, 2017
2 FAQ - Risk Reduction Mode March 28, 2016
3 Risk Management Fee. February 13, 2015
4 Short-collection of Client Margins. January 06, 2015
5 FAQ - PAN Verification June 25, 2015
6 FAQ - Inactive clients January 07, 2016
7 FAQ - Concentration Margin May 13, 2019
8 FAQ - Collateral January 10, 2017
9 FAQ - Clubbing of Positions January 16, 2017
10 FAQ - Authorised Person January 14, 2019
11 FAQ - User id January 14, 2019
12 FAQ - Insurance January 14, 2019
13 FAQ - GST June 16, 2017
14 FAQ - Regaining Matched Book August 28, 2017
15 FAQ - SEBI registration October 01, 2015
16 FAQ - Enrollment of Participants for Spot Price Polling April 05, 2018
17 FAQ - options margins January 10, 2018
18 FAQ- Early Pay-in April 13, 2018
19 FAQ – Early Pay-In Facility for Farmers Producer Organization (FPO) September 05, 2018
20 FAQ - Margin Provisions for Intraday Crystallised Losses June 18, 2018

1 What are the benefits in futures trading in commodities?
2 Who can become member of NCDEX?
3 Can we apply for the membership under the HUF account?
4 Is NCDEX a separate legal corporate entity?
5 What are the membership charges?
6 How is the net worth calculated for a new subsidiary?
7 Whether the networth of the holding company will be taken into consideration for the same?
8 How could a new company submit the 3 years balance sheet?
9 Who will certify the various certificates, which are required to be certified by the auditor of the company?
10 Is it a must that the individual should be a graduate?
11 What is the lock in period for the interest free security deposit?
12 When is the security deposit eligible for refund in case of surrender?
13 What is the essential requirement for collateral?
14 Are the course materials available for the proposed exam to be undertaken by the core dealer?
15 Whether we can apply for the membership of NCDEX in the same name in which we are holding the membership of NSEIL?
16 Whether exposure will be allowed against base capital and collateral?
17 What are the trading hours?
18 Please indicate the permissible brokerage structure and brokerage pattern.
19 Whether Regulators, i.e., Forward Market Commission, levy any turnover fee?
20 Is there any additional cost towards acquiring membership in addition to what has been specified in the application form?
21 Are the memberships to be taken afresh for each of the products to be traded in NCDEX from time to time?
22 Can one use the NSE terminal to trade in NCDEX?
23 Whether one can use the idle NSE terminal for trading on NCDEX?
24 What is the meaning of dominant promoter group?
25 What are the commodities that are traded on the exchange?
26 Which are the other multi commodity exchanges in the country?
27 How NCDEX is different from other exchanges?
28 Will the exchange plan to have market makers?
29 What is your membership scrutiny process?
30 What should be the main objective clause in the Memorandum of Association to aid in trading in commodity futures?
31 Whether a designated director in an entity having membership of BSE assume similar responsibility /designation in the new subsidiary formed for taking membership of NCDEX.
32 Whether qualifying director in entity being member of NSE assume similar responsibility /designation in the new subsidiary formed for commodity exchange?
33 At what point of time one has to comply with the Net worth requirements?
34 Can a partnership deed be used for address proof for partnership firm's registered office address?
35 IF Partnership Deed is notarized, in that case is it acceptable?
36 In case of Corporate opening a trading account to trade in commodities futures, Board Resolution authorizing one of the director or authorised person to sign all the documents for commodities future trading as well as place buy / sell orders will suffice or the same should be there in Memorandum & Articles of Association.?
37 In case of corporate opening a trading account to trade in commodities futures, only board resolution will suffice or the same should be there in Memorandum & Articles of Association.
Stop Loss FAQ
1 What is a STOP Loss order?
2 What is Buy STOP Loss order?
3 What is Sell STOP Loss order?
4 How can I place Stop Loss orders?
5 What is Trigger Price?
6 What is Limit Price?
7 After placing a STOP Loss order, can it be seen in Pending orders screen (F3)?
8 When will the STOP Loss order get confirmed?
9 Can a STOP Loss Order be modified? If yes, then how?
10 When will a Buy STOP Loss Order get triggered?
11 When will a Sell STOP Loss order get triggered?
12 What should be the difference between Trigger Price and Limit Price?
13 When will a STOP Loss order get Traded?
14 Can the STOP Loss order be cancelled by user?
15 Can a STOP Loss order be cancelled by system?
16 What are the messages that will be sent to the front end on Order confirmation, Triggered, traded, Modified, Rejected and Cancelled?
17 Can a CM modify or cancel a STOP Loss order placed by a user?
18 Will the User get a message if the CM cancels or modifies an order?
19 Can a STOP Loss order be rejected?
20 What is the validity of a STOP Loss order?
21 Will a STOP Loss orde r be carried forward to the next day if it doesn't trigger or get traded?
22 Can a STOP Loss order be placed outside the price range?
1 Is NCDEX going to have its Clearing Corporation?
2 Who maintains and the Settlement Guarantee Fund?
3 How would contracts settle
4 What would be the settlement period?
5 Would you be providing for deliveries?
6 Are deliveries compulsory?
7 Would additional margins be levied for deliverable positions?
8 How would the settlement take place in commodity futures market?
9 How would a buyer take physical delivery from warehouse?
10 How would a seller get the electronic balance for the physical holdings?
11 How would the seller give an invoice to the buyer?
12 Process of Delivery at exchange for Seller Option, Compulsory Delivery, Intention Matching & Staggered/Early Delivery?
13 How many warehouses would be there?
14 How would you accredit warehouses?
15 Who would decide the warehousing charges?
16 Would health checks and inventory verification be carried out?
17 How sales tax is settled?
18 How will you ensure uniformity in delivered grades / varieties?
19 Would there be any premium / discounts for the difference in quality?
20 What happens when the commodities reach the validity date?
21 Would commodities be accepted without assayer's certificate?
22 Can commodities be re-deposited in the warehouse after the validity period of the assayer's certificate?
23 What is the procedure for handling bad delivery / part delivery?
24 How would disputes be resolved?
25 Who would be the clearing bankers?
26 Who would be the depository participants?
27 What is the procedure for entering / modifying / canceling delivery intention in Trader (NEAT) trading terminal?
28 What is the procedure for entering / modifying / canceling delivery intention in Tradex trading terminal?
1 Would the same technology infrastructure of NSE be used?
2 Why is the same network of NSE not being considered?
3 Are VSATs compulsory?
4 Which protocol is being used?
5 Who would provide the services?
6 When would the payment be made?
7 Is there a facility of buy back of VSAT in case of surrender of membership?
8 What charges are required to be paid for VSAT connectivity?
1 What are the guidelines for issue of advertisement by the members?
2 Whether prior approval of the Exchange is required for issue of advertisement?
3 Can the logo of the Exchange be used by the member for issue of advertisement, use on letter head, visiting cards or website of the member?
4 Whether a member can trade through another trading member?
5 Is there any restriction on the members to carryout any activity other than trading on the Exchange platform like trading in securities?
6 What are the guidelines for appointment of Compliance Officers by the members?
7 Can a member enter into a common member client agreement with the client for all the Exchanges?
8 What are the guidelines issued by the Exchange for issue of contract notes?
9 Can digitally signed contract note be issued?
10 Are all the members of the Exchange required to take fidelity insurance?
11 What are the guidelines for display of details at member's office ?
12 What are the guidelines for portfolio management services by the members?
13 What are the guidelines for Brokerage to be charged by the member?
14 Is a copy of income tax returns mandatory to be collected by the members from the client at the time of registration or KYC?
15 What are the guidelines for trading in in-active client codes by the member?
Sales Tax
1 Does the trading / clearing member need to have local sales tax registration?
2 Do the market participants need to have sales tax registration?
3 In which state sale tax registration is to be obtained?
4 What is rate of sales tax applicable?
5 Who is responsible for payment of sales tax?
6 When is the sales tax payable by the buyers?
7 Can sales tax exemptions be availed? How?
8 What are the procedure for submission of the support documents /certificates / declarations for availing the sales tax exemptions?
9 If a client/participant trades in more than one commodity having delivery centers in different States does he need sales tax registration in each of such states?
10 In which file the amount of Sales Tax Collected/paid is reflected?
11 Is sales tax registration necessary for those commodities which are inclusive of all taxes and levies?
12 What is Anugya patra?
13 What is AMC Certificate?
Stamp Duty
1 Where can a person verify the percentage of stamp duty applicable on futures contract?
2 How is stamp duty applicable?
3 Can a member pay stamp duty in states other than where the client is registered and trading?
4 How is the Stamp Duty to be paid, Is it State Wise?
5 Can a member pay stamp duty of all his clients at one location?
6 If Stamp Duty is applicable in two states, one where the Client is registered and the other i.e. the registered office then, Is he required to pay stamp duty at both places?
7 Is stamp duty applicable for Pro Trading also?

CTCL Terminal
1 How many CTCL Terminals can be created on one CTCL user id?

Certified Emission Reductions (CERs)
1 What are Greenhouse Gases (GHGs)?
2 Which are the major greenhouse gases (GHGs) and what is a carbon dioxide equivalent (CO2e)?
3 What is Carbon Trading?
4 Why are GHGs traded?
5 What are UNFCCC and Kyoto Protocol?
6 What alternative mechanisms for GHG emission reductions does the Kyoto Protocol (KP) provide for? How do developing countries participate in these mechanisms?
7 What is CDM?
8 What are Certified Emission Reductions (CERs) and how are they issued?
9 What are Emission Allowances?
10 What is the market potential of CERs?
11 Which other exchanges are organizing trading of CERs?
12 What is so unique about the NCDEX initiative?
13 What will be major features of NCDEX CER futures contract?
14 How will deliveries of CERs take place?
15 Why is the NCDEX CER futures contract a DEC expiry contract?
16 What are the price indicators for CERs?
17 Who are the major buyer and sellers of carbon credits?
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