Contract Specifications for Kachhi Ghani Mustard Oil.

Type of Contract

Futures Contract Specifications

Name of Commodity

Kachhi Ghani Mustard Oil

Ticker symbol

KACHIGHANI

Trading System

NCDEX Trading System

Basis

Ex-tank Jaipur (Exclusive of sales tax)

Unit of trading

10 MT

Delivery unit

10 MT

Quotation/base value

Rs. per 10 Kg

Tick size

Re. 0.05 (5 paisa)

Quality specification

Parameters
Kachhi Ghani Mustard Oil shall be clear, free from rancidity, suspended or foreign matter, separated water, added colouring or flavouring substances or mineral oil. It shall conform to the following standards:

  1. Colour on Lovibond scale in ( 1/4 " Cell) as Y + 5R, units - 50
  2. Acid Value as % Oleic Acid -1.5% Maximum
  3. Iodine Value (wijs method) - 98 to 110
  4. Bellier's Test (Turbidity Temp.) - 23.0 to 27.5 degrees celcius
  5. Saponification Value - 169 to 177
  6. Unsaponifiable matter - 1.2%max
  7. Refractive Index at 40 Degree Cel. - 1.4646 to 1.4662
  8. Test for Argemone oil - Negative
  9. Test for mineral oil - Negative
  10. Percentage of natural oil content (as ATC) weight percentage - 0.25 to 0.60
  11. Test for the presence of Hydrocyanic acid - Negative
  12. Specific Gravity at 30 Deg. Celcius - 0.907 to 0.910

Quantity variation

+/- 2%

Delivery center

Jaipur (within a radius of 50 km from the municipal limits)

Trading hours

As per directions of the Forward Markets Commission from time to time, currently -

Mondays through Fridays
Trading Hours - 10:00 am to 5:00 pm

Saturdays
Trading Hours - 10:00 am to 2:00 pm

The Exchange may change the above timing with due notice

Due date/Expiry date

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 not a Saturday

Final Settlement Price

The Final Settlement Price (FSP) would be the simple average of the last spot (polled) prices of Kachhi Ghani Mustard Oil of the last 3 days.

Delivery specification

Upon expiry of the contract, the delivery position would be arrived at by the Exchange based on the information to give/take delivery furnished by the sellers and buyers as per the process put in place by the Exchange for effecting physical delivery

Delivery logic

Intention matching

Closing of contract

On the expiry of the contract, all outstanding positions which are not intended for giving/taking of physical delivery of the commodity shall be closed out at the Final Settlement Price announced by the Exchange

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

No. of active contracts

As per launch calendar

Price band

The daily price limit will be 2% and will be raised to 4% after a 15-minute cooling period if the price limit of 2% is reached. If the price limit reaches 4%, trading will continue within the 4% limit.

Position limits

Member level : Maximum of 18,000 MT or 15 % of Market Open Position in the commodity, whichever is higher
Client level: 6,000 MT

Hedge position as indicated vide Commissionís letter no. 4/4/2005-NCDEX/COMPL dated 4/10/2005

Near month limit (The following limits would be applicable from 28 days prior to expiry date of a contract)

Member Level: Maximum of 6,000 MT or 15 % of total near month Open Position in the commodity, whichever is higher
Client Level: 2,000 MT

Premium/Discount

No quality allowance

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.

 

Contract Launch Calendar:- 2010

 

Contract Launch Month

Contract Expiry Month

January 2010

February 2010

March 2010

April 2010

February 2010

May 2010

March 2010

June 2010

 

Contract Launch Calendar :

 

Contract Launch Month

Contract Expiry Month

April 2010

July 2010

May 2010

August 2010

June 2010

September 2010

July 2010

October 2010

August 2010

November 2010

September 2010

December 2010


Contract Launch Calendar of Kachi Gaani Mustard Oil ( KGMO ) :-

 

Contract Launch Month

Contract Expiry Month

October 2010

January 2011

November 2010

February 2011

December 2010

March 2011

January 2011

April 2011

February 2011

May 2011

March 2011

June 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.