Contract Specification. ( Applicable for contracts expiring in December 2008 and onwards )

Trading System

NCDEX Trading System

Ticker symbol

COTTONGUJ

Basis

Ex-warehouse Kadi, exclusive of all taxes

Unit of trading

50 Bales with each bale of 170 kg (= 85 Quintals)

Delivery unit

50 Bales with each bale of 170 kg (= 85 Quintals)

Quotation/base value

Rs./Candy (3.5562 Quintals)

Tick size

Re 10

Quality specification

INDIAN 28.5 mm COTTON

a. Staple length: As per HVI mode of assaying
1.Basis:28.5 mm
2. No premium above 28.5mm
3. 28.0mm – 28.4mm = -Rs.350/- per Candy
4.Below 28.0mm = Rejected

b. Micronaire
Basis: 3.7 - 4.8 with no premium/discount

c. Strength: With HVI mode of assaying
Basis: Min. 28 G/Tex with no premium above 28 G/Tex

d. Grades (On HVI Mode of Testing)
1. Basis: 31-1,31-2,31-3,41-1
2. 21-2 and above = No Premium
3. Tenderable Grades:31-4,41-2, 41-3 = -300/- per Candy
4. Below Tenderable Grades = Rejected

e. Moisture
1. Basis: 8 %
2. No Premium below 8%
3. Acceptable upto 8.5% with a discount of 1:1,
4. Above 8.5% Rejected

f. Trash content
Basis: Max. 3% with no premium below 3%

Quantity variation

+/- 5% for total weight of each deliverable lot

Locational Premium
and discount with respect to basis center

Goods can also be tendered at Rajkot . The deliveries at Rajkot would be at par with Kadi deliveries.

Trading and Delivery months

January, February, March, April, May, June, July, August, October, November and December

Delivery center

Kadi (Gujarat)

Also deliverable

Also deliverable at Rajkot

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

As per launch calendar

Opening of contracts

Trading in new contract month(s) will open on the 10th day of the month. If 10th day happens to be a non- trading day then the contract will open on the next trading day.

Due date/Expiry date

20th day of the delivery month

If 20th day happens to be a holiday, a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange

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 shall be raised by another (+/-) 1% and trade will be resumed. If the price hits the revised price band 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 limit

• Member: Maximum of 60,000 bales or 15% of market wide open position whichever is higher.
• Client: Maximum of 20,000 bales.

The above limits will not apply to bonafide hedgers. For bonafide hedgers, the Exchange will, on a case to case basis, decide the hedge limits.

For near month contracts:
The following limits would be applicable from 10 days prior to expiry date of a contract
• Member: Maximum up to 12,000 Bales or 15% of market wide near month open position, whichever is higher
• Client: Maximum up to 4,000 Bales

Special Margins

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.

Final Settlement Price

The Final Settlement Price (FSP) shall be arrived at by taking the average of the last three days spot prices. The last spot price for the day as polled by the Exchange during the last three days shall be taken for arriving at the FSP. In the event of unavailability of the spot prices during any one of the last three days excluding the expiry day (i.e., on E - 1 or E - 2), the spot price of the previous day (E - 3) shall be considered for the average of the last three days. In case spot prices are not available during the 3 day period prior to the expiry date, the last spot price of the expiry day shall be considered for arriving at the FSP.

 

Tolerance Limit

Commodity Specifications

Basis

Acceptable quality range as per contract specification

Permissible Tolerance

Staple Length

28.5 mm

Min 28mm

+/-0.25 mm tolerance

Mic

3.7-4.8

3.7-4.8

+/-0.5

Strength

Min 28 g/tex

Min 28 g/tex

+/-0.5 g /tex

Grade

31-1,31-2,31-3,41-1

31-4,41-2, 41-3

 

Moisture

Basis 8%

Max 8.5%

+/- 0.5%

Trash

Basis: 3%

Max tenderable upto 3%

+/-.25%

Max Tolerance (for all characteristics)

+/- 1.5 %

 

Contract Launch Calendar

Contract Launch Month

Contract Expiry Month

August 2008

December 2008

October 2008

January 2009

November 2008

February 2009

December 2008

March 2009

January 2009

April 2009

February 2009

May 2009

March 2009

June 2009

 

Contract Launch Calendar

Contract Launch Month

Contract Expiry Month

April 2009

July 2009

May 2009

August 2009

June 2009

October 2009

July 2009

November 2009

August 2009

December 2009

 

Contract Launch Calendar

Contract Launch Month

Contract Expiry Month

August 2009

January 2010,February 2010

October 2009

March 2010

November 2009

April 2010

December 2009

May 2010

January 2010

June 2010

 

Contract Launch Calendar

Contract Launch Month

Contract Expiry Month

March 2010

July 2010

March 2010

August 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.