Type of Contract
|
Futures Contract Specifications
|
Name of Commodity
|
Potatoes Fair Average Quality
|
Ticker symbol
|
POTATO
|
Trading System
|
NCDEX Trading System
|
Basis
|
Ex-warehouse Agra gross weight exclusive of all local
taxes – taxes, fees ( i.e. mandi fee ), levies etc.
|
Unit of trading
|
15 MT
|
Delivery unit
|
15 MT
|
Quotation/base value
|
Rs per quintal
|
Tick size
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10 paisa
|
Quality specification
|
Potato as per following specification shall be
acceptable for physical delivery
Width Size (potato width size by one dimension or the
other)
Less than 35 mm -10% Max
More than 80 mm -15% Max
|
Dull, Skin blemishes, Cut , Crack ( cut and cracked
not exceeding 5% max), Sprouted (Sprouted content not exceeding 1% max
and Sprout length more than 2 mm only to be considered as Sprouted),
Black scars and Green Potatoes
|
15% basis
|
Soil (kgs per bag)
|
1 kgs Max per 51 Kgs bag
|
The potatoes should be firm and the skin should be
mature and thick. The potatoes should be free from disease.
|
|
Quantity variation
|
+/-10%
|
Delivery center
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Agra (within a radius of 50 km from the municipal
limits)
|
Additional delivery centers
|
Indore and Vadodara (For all the centers up to the
radius of 50 kms from the municipal limits) with locational
premium/discount as announced by the Exchange before launch of contract
|
Types of Potato Deliverable
|
Agra – 3797
Indore – Jyoti and Laukar
Vadodara- Badshah and Laukar
All the varieties will be at par
|
Hours of Trading
|
As per directions of the Forward Markets Commission from
time to time, currently -
Mondays through Friday - 10:00 AM to 5:00 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 contract, all outstanding open
positions would 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.
|
Delivery Logic
|
Compulsory Delivery
|
Opening of contracts
|
Trading in a new month contract will open on the 10th
day of the month in which the near month contract is due to expire. If the
10th day happens to be a non-trading day, contracts would open on the next
trading day
|
Closing of contract
|
Upon the expiry of contract all the outstanding open
position would result in compulsory delivery
|
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
|
No. of active contracts
|
As per launch calendar
|
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 (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%.
|
Position limits
|
For Members - Maximum up to 45,000 MT or 15% of
market-wide open interest whichever is higher.
For clients - Maximum up to 15,000 MT
The above limits will not apply to bona fide hedgers. For bona fide
hedgers, the Exchange will, on a case to case basis, decide the hedge
limits. Please refer to Circular No. NCDEX/TRADING-100/2005/219 dated
October 20,2005 .
For near month contracts:
The following limits would be applicable from twenty eight days prior to
expiry date of a contract
Member: Maximum up to 9,000 MT or 15% of the market-wide near month
open position, whichever is higher
Client: Maximum up to 3,000 MT
|
Special margins
|
In case of additional volatility, a special margin at
such percentage, as deemed fit, will be imposed in respect of outstanding
positions, which will remain in force as long as the volatility exists,
after which the special margin may 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.
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