Contract Specifications for Silver. Updated as on 04 November 2010
(Applicable for contracts expiring in December 2010 and thereafter)

Name of Commodity

Silver

Ticker symbol

SILVER

Trading System

NCDEX's Trading System

Basis

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

Unit of trading

30 Kg

Delivery unit

30 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

+/- 10 per cent at bar level.

Delivery center

Ahmedabad
(Within a radius of 50 Km from the municipal Limits)

Additional delivery centers

None

Hours of trading

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

Monday through Friday: 10:00 AM to 11:30 PM

Saturday: 10.00 AM to 2.00 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.

Tender Period

Tender Date T

Tender Period:

Tender period would start from one working day, other than a Saturday, prior to the last working day of the calendar month prior to the expiry date of the contract.

Pay-in and Pay-out: on a T+1 basis. If the tender date is T then, pay-in and pay-out would happen on T + 1 day. If such a T + 1 day happens to be a Saturday, a Sunday or a holiday at the Exchange, clearing banks or any of the service providers, Pay-in and Pay-out would be effected on the next working day.

Due Date/ Expiry Date

Expiry date of the contract:

The contract expires on the 3rd of the expiry month. If the 3rd happens to be a a Saturday or holiday then the contract will expire on the succeeding working day.

The settlement of contract would be by a staggered system of Pay-in and Pay-out including the Last Pay- in and Pay-out which would be the Final Settlement of the contract.

Delivery Specification

Upon expiry of the contracts all the outstanding open positions should 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.

During the Tender period, if any delivery is tendered by seller, the corresponding buyer having open position and matched as per process put in place by the Exchange, shall be bound to settle by taking delivery on T + 1 day from the delivery centre where the seller has delivered same.

Closing of contract

Clearing and settlement of contracts will commence with the commencement of Tender Period by compulsory delivery of each open position tendered by the seller on T +1 to the corresponding buyer matched by the process put in place by the Exchange. Upon the expiry of the contract all the outstanding open position should result in compulsory delivery.

Opening of contracts

Trading in a new contract will open on the 1st day of the month in which any contract is due to expire. If the 1st happens to be a holiday, contracts would open on the succeeding working day.

No. of active contracts

As per launch calendar

Price Band

Daily Price fluctuation limit is (+/-)4%. If the trade hits the prescribed daily price limit, the price limits 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.

Position limits

Member-wise position limit - Maximum of 150 MT or 15% of market-wide open position whichever is higher - for all silver contracts combined together
Client-wise position limit - 50 MT For all Silver contracts combined together.
(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 for other fineness.

Special margin

In case of additional volatility, a special margin at such other percentage, as deemed fit by the Regulator/Exchange, may be imposed on either the buy or the sell side in respect of all outstanding positions. Removal of such Margins will be at the discretion of the Regulator/Exchange.

Additional margin

In addition to the above margins the Regulator/Exchange may impose additional margins on both long and short side at such other percentage, as deemed fit. Removal of such Margins will be at the discretion of the Regulator/Exchange

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.

Annexure: Contract Launch Calendar

Launch Month

Expiry Month

November 05, 2010

December 2010
March 2011
May 2011
July 2011

December 2010

September 2011

March 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.