Future Contract Specification Silver 5 kgs updated as on 5 October 2009 ( Applicable for contracts expiring in November 2009 and thereafter )

Type of Contract

Silver Futures Contract Specifications

Name of Commodity

Silver

Ticker symbol

SILVER5AHM

Trading System

NCDEX Trading System

Basis

Ex-Ahmedabad inclusive of Customs Duty, exclusive of local sales tax/VAT.

Unit of trading

5 Kg

Delivery unit

5 kg

Quotation/base value

Rs per Kg of Silver with 999 fineness

Tick size

Re. 1

Quality specification

Not less than 999 fineness bearing a serial number and identifying stamp of a refiner approved by the Exchange.

List of approved refiners:
www.ncdex.com\downloads\refiners_silver.pdf

Quantity variation

+/- 6 per cent

Delivery center

Ahmedabad

Additional delivery centres

New Delhi

Location Premium/Discount as notified by the Exchange from time to time.

Hours of trading

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

Mondays through Fridays : 10:00 AM to 11:30 PM
Saturdays : 10:00 AM to 02:00 PM

On the expiry date, contracts expiring on that day will not be available for trading after 5 PM.
The Exchange may vary 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 other than a Saturday of the Exchange.

Delivery Specification

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

Closing of contract

On expiry of the contract, all outstanding positions not resulting in 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 may 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.

No. of active contracts

As per launch calendar

Price band

Base daily price fluctuation limit is (+/-)4%. If the trade hits the prescribed base daily price limit, the limit will be relaxed up to (+/-)6% without any break/ cooling off period in the trade. In case the daily price limit of (+/-)6% is also breached, then after a cooling off period of 15 minutes, the daily price limit will be further relaxed up to (+/-) 9%. Trade will be allowed during the cooling off period within the price band of (+/-)6%.

In case of price movement in International markets which is more than the maximum daily price limit (currently 9%), the same may be further relaxed in steps of 3% with the approval of FMC.

On the first day of any new contract, the limit on daily price fluctuation will be reckoned with reference to the opening price. On the second and subsequent days, the daily price fluctuation limit will be reckoned with reference to the mark-to-market rate of the previous closing rate.

Position limits *

Member-wise: 150 MT or 15% of market-wide open position whichever is higher.

Client-wise: 50 MT

(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.)

Quality Allowance (for Delivery)

Silver bars of 999 fineness. No premium/discount.

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.

Final Settlement Price

The Final Settlement Price shall be the last spot price of the day as polled by the Exchange on the last trading day of the contract.

 

* The Position Limits for Silver shall be applicable to each individual contract and all Silver contracts put together. All Silver contracts include contracts of Silver 5 Kgs Ahmedabad (Symbol: SILVER5AHM), Silver 5 Kgs Delhi (Symbol: SILVER5DEL), Silver 30 Kg Ahmedabad (Symbol: SLVPURAHM) and Silver International (Symbol: SLVPURINTL). Any new contract of Silver shall also be included for calculation within the above limits.



Contract Launch Calendar

Contract Launch Month

Contract Expiry Month

August 2009

November 2009

September 2009

December 2009

October 2009

January 2010

November 2009

February 2010

December 2009

March 2010

January 2010

April 2010

February 2010

May 2010

March 2010

June 2010

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 Silver 5 kg (SILVER5AHM):-

 

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

April 2011

July 2011

May 2011

August 2011

June 2011

September 2011

July 2011

October 2011

August 2011

November 2011

September 2011

December 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.