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REGULATORY FRAMEWORK

MINISTRY OF FINANCE

MULTI COMMODITYEXCHANGE OF

INDIA LTD(MCX)

NCDEXACE UCX NMCE

FORWARD MARKET COMMISSION (FMC)

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Exchange Dynamics

• MCX commenced operations on November 10, 2003

• Fully electronic commodity futures exchange with scalable technologyframework and Disaster Recovery Site (DRS) for end-to-end functioning ofsystems and network

• Largest and only listed commodity exchange in India

 – 84.89% market share in terms of the value of commodities traded in thefutures market during FY2014

 – Average daily turnover in FY2014: INR 278 billion

 – Highest daily turnover of INR 1,199.41 billion achieved on April 15, 2013

• Extensive reach: 2000+ members, operations through 467,000 terminalsincluding CTCL across over 1900 cities and towns across India

• Competitive edge: Leadership team, extensive experience in financial servicesindustry step ahead in innovation & product mix, multiple domestic andinternational alliances, scalable technology platform and robust business model

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STRONG INDUSTRY FUNDAMENTALS

KEY POINTS MAJOR COMMODITIES’ TURNOVER IN INDIA FOR FY13-14

17 commodity exchanges recognised by FMC in India

Six are national multi-commodity exchanges

Other s11 are regional or localised exchanges spread across India

Currently about 50 commodity futures are approved by FMC for trading

Six electronic national level multi-commodity exchanges recognised by

the Government of India are MCX, NCDEX, NMCE, ICEX, ACE & UCX

The national exchanges accounted for 99.72% of the turnover ofcommodity futures contracts traded in India during FY13-14

Growth of the commodity industry in India will depend on favourablepolicy framework (i.e. roll-back of CTT), amendment of regulatorystatutes, economic growth, increase in investor participation,

technological advancements and introduction of new commodityclasses

GROWTH OF INDIAN COMMODITIES MARKET IN TERMS OFVALUE OF FUTURES TRADED (INR TN) MCX: MARKET SHARE IN KEY SEGMENTS FOR FY13-14

Commodity MCX MarketShare

Proportion of

MCX’sFY 13-14

turnover

Gold 98.8% 28.8%

Crude Oil 99.4% 20.8%

Silver 99.2% 20.7%

Copper 98.9% 9.0%

Natural Gas 98.3% 7.6%

4152

78

119

181170

101

-

 50

 100

 150

 200

FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

25%

18%

18%

8%

7%

4%

3%2%

2%2%

11% Gold

Crude Oil

Silver

Copper

Natural Gas

Lead

Refined Soy Oil

Zinc

Soyabean

Nickel

Others

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Overview

IMPORTANT INITIATIVES  AVERAGE DAILY VOLUME (INR BN) 

• 1st commodity futures exchange to offer mini contracts in India

• 1st  commodity futures exchange in India to develop real-timecomposite commodity futures index*  such as MCXCOMDEX,MCXAGRI, MCXENERGY and MCXMETAL

• 1st commodity futures exchange in India to report its sustainabilityperformance since FY 2009-10 

VOLUME OF CONTRACTS (Lots in MN)

MCX, 84.9%

NCDEX,

11.3%

NMCE, 1.5%

ICEX, 0.8%

ACE, 0.5%

UCX, 0.7%

Others,

0.3%

210

321

503 488

278

0

200

400

600

FY 10 FY 11 FY 12 FY 13 FY 14

164213

390 375

214

0

100

200

300

400

500

FY 10 FY 11 FY 12 FY13 FY14

MCX MARKET SHARE IN FY 13-14 

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RAVI KAMAL BHARGAVA, IAS (Retd.)

Independent Director, FMC Nominated Former Secretary General, National Human

Rights Commission

Former Additional Secretary, Dept. of Justice,

Ministry of Home Affairs

Former Additional Secretary, Ministry of Mines,Government of India, etc.

DINESH KUMAR MEHROTRA

Independent Director, FMC Nominated

Former Chairman, LIC

Over 36 years of management

experience in LIC

Previously held position of Convenor &Member Secretary of Expert Group

Committee formed by the Ministry of

Finance, Government of India

G. ANANTHARAMAN, IRS (Retd.)

Independent Director, FMC Approved

Presently, Special Advisor to the Chairman,

Tata Realty & Infrastructure Limited

Former Chief Commissioner of Income Tax,Mumbai

Former whole time member of SEBI

K N REGHUNATHAN

Shareholder Director, Union Bank of India

Presently, General Manager -Treasury,

Union Bank of India

Over 35 years of work experience withUnion Bank of India in various capacities

Member of the Advisory Committee ofMCX-SX, IDFC Investment Fund, TATAGrowth Fund & TATA Innovative Fund

SATYANANDA MISHRA, IAS (Retd.)

Chairman, Independent Director, FMC Approved

Ex-Chief Information Commissioner Handled various assignments in different

capacities viz. Secretary, Department of

Personnel & Training, Establishment Officer,Principal Secretary, Public Works Department,

etc.

SANTOSH KUMAR MOHANTY

Independent Director, FMC Nominated

Officer in the Indian Revenue Services

Director of Forward Markets Commission

FMC)

Held various positions in the Income Tax

Department

Over 28 years of experience

S.N. ANANTHASUBRAMANIAN IndependentDirector, FMC Nominated

Fellow Member of Institute of CompanySecretaries of India(ICSI) and presently the

President of the Council of ICSI.

More than two decades of practice indiversified areas including consultation in

corporate/securities laws, Due Diligence

Reports, etc.

Strong votary of good governance practices

P. SATISH

Shareholder Director, NABARD

Chief General Manager and Secretary,

NABARD

Previously worked with RBI

Responsibilities relate to micro finance,

financial inclusion and ruralinfrastructure financing

P. PARAMASIVAM

Shareholder Director, Corporation Bank

Presently, General Manager, Corporation Bank

About 28 years of work experience withCorporation Bank in various capacities

B.V. CHAUBAL

Shareholder Director, State Bank of India

Presently, Deputy Managing Director and

Group Executive, State Bank of India

Working with State Bank India since 1976 invarious capacities

M.A.K. PRABHU

Shareholder Director, Canara Bank

Presently, General Manager (Integrated

Treasury Wing) , Canara Bank

Working with Canara Bank since 2001 in

various senior capacities.

EXPER IEN CED BOARD OF D IRECTORS

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Portfolio Analysis

Period Considered: Jan 2009 – Dec 2013 

Portfolio Distribution Parameters

Criteria Nifty Bond Gold Silver

Annualized

Returns (%)

Annualized

Volatility (%)

Sharpe

Ratio (%)

1 Without

Commodity

100% 20.1% 21.9% 57%

2 80% 20% 17.5% 17.5% 57%

3 With

Commodity40% 20% 40% 17.6% 14.0% 73%

4 30% 20% 30% 20% 18.5% 15.8% 69%

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Global asset returns

SOURCE: BLOOMBERG

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Commodities as an Asset Class

9/19/2014 11

• Commodities are an unique asset class that can provide valuablediversification benefits to an investment portfolio.

• Used in combination with traditional assets like stocks and bonds, they

can potentially reduce overall portfolio long-term risk while increasing

upside potential.

• The historically low correlation between commodities and financial assetsmeans that commodities may perform well in neutral or negative years for

stocks or bonds.

• Hedge against Inflation

• Global Underlying – Broadly difficult to manipulate

• Extremely High Leverage Instrument – Due to low margins (4-5%)• Pure Play – Demand/Supply/Inventory/Trading Pattern driven

• Hedge against a Currency Fluctuation.

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COMMODITY DEMOGRAPHICS (GLOBAL IN NATURE) 

Euro zone1. Inflation

2.Growth rate

3. Easing

United States

1. Dollar2. Monetary Policy

3.Inflation

4.Fed easing

China

1. Growth rate

2. Consumption pattern (domestic& global)

3.Stock positions

OPEC & oil producingeconomies

1. Stock & supply policy

2. Geopolitical sceanrio

India –

still aprice taker!!!

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Trading strategies –Clients can be scientific in

approach – Economic Data Releases:

• Employment data – First Friday of month

• GDP  – Last Friday of the month

• ISM Mfg. Index – First working day of month

• Trade Deficit – Third week of month

• Consumer price index- Third week

• Production price index – Third week

• Industrial production – Third week

• Retail sale – Third week

• Durable goods order – Last week

• Federal bank meeting (8 times in a year)

• Base metals inventory – every day

• Crude inventory – Wednesday

• Natural gas inventory - Thursday

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WHERE CAN YOU FIND DATA ?

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Global Events & Effects on Commodity Prices 

2011:European

Crisis 2013:Probable Dollar

Crunch

2014- QETapering

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Current Global Environment

US decides to taper its bond buying package by Oct,14 & tightening

it’s monetary policy   China’s uncertain and uneven growth trajectory questioning

recovery.

Europe – the volcano that took birth 3 years back has now started to

settle peacefully with small tremors here and there.

Stimulus packages are working as steroids with short lived impactand increasing ineffectiveness.

BRICS – struggling to remain resilient.

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Impact of International Price Movement 

Movement of $1 will fetch Rs 22, taking INR constant

Particulars

Gold

Spot 1311.00

Add CIF in dollars 3.00

1314.00

Multiply 32.15

Dollars per kg 42245.10

995 prices 42038.08Multiply Currency Rate 60.06

.

Rs per kg 2524806.98

Add Customs duty(8%) 252480.70

Cess (3%) 7574.42

Landed Cost per kg 2784862.10

Add Bank Cost(0.10%) 2784.86

Final wholesale Price per kg 2787646.96

Final Price per 10 gms 27876

Particulars

Gold

Spot 1312.00

Add CIF in dollars 3.00

1315.00

Multiply 32.15

Dollars per kg 42277.25

995 prices 42070.07Multiply Currency Rate 60.06

.

Rs per kg 2526728.45

Add Customs duty(8%) 252672.84

Cess (3%) 7580.19

Landed Cost per kg 2786981.48

Add Bank Cost(0.10%) 2786.98

Final wholesale Price per kg 2789768.46

Final Price per 10 gms 27898

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How INR impact the Gold Prices

Re 1 movement will move gold prices by Rs 465 , taking Intl prices constant

ParticularsGold

Spot 1311.00

Add CIF in dollars 3.00

1314.00

Multiply 32.15

Dollars per kg 42245.10

995 prices 42038.08

Multiply Currency Rate 60.06

.

Rs per kg 2524806.98

Add Customs duty(8%) 252480.70

Cess (3%) 7574.42

Landed Cost per kg 2784862.10

Add Bank Cost(0.10%) 2784.86

Final wholesale Price per kg 2787646.96

Final Price per 10 gms 27876

Particulars

Gold

Spot 1311.00

Add CIF in dollars 3.00

1314.00

Multiply 32.15

Dollars per kg 42245.10

995 prices 42038.08

Multiply Currency Rate 61.06

.

Rs per kg 2566845.06

Add Customs duty(8%) 256684.51

Cess (3%) 7700.54

Landed Cost per kg 2831230.10

Add Bank Cost(0.10%) 2831.23

Final wholesale Price per kg 2834061.33

Final Price per 10 gms 28341

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IN TANDEM

Prices of gold traded on MCX/ Shanghai/ TOCOM is converted to US$ per ounce.

*MCX prices are inclusive of Taxes.

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Time…..When Volatility is Max!!!Timings(IST)

Important Global Cues

10:00 am MCX Opens

12:30 pm London Market Opens

01:30 pm LME Inventory data

04:00 pm LME Ring Opens

05:50 pm Opening of COMEX Session

06:00 pm Release of U.S Economic Data

07:00 pm US Stock Market Opens

08:00 pm Crude Oil and Natural Gas Inventory Data on Wednesday and

Thursday respectively

09:00 pm LME Ring Closes

11:45 pm Closing of COMEX Session

( )

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GLOBAL MARKETS –(BULLION SPECIFIC)

TOCOM 5:30 AM - 12:00 PM,1:30 PM - 7:30 PM

SHANGHAI 9:00 AM - 11:30 AM;

1:30 PM - 3:00 PM;9:00 PM - 2:30 AM

MCX  10:00 AM - 11:30 PM

New York

COMEX 8:20 AM - 1:30 PM

GLOBEX  6:00 PM to 5:15 AM

(Next day)

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OUR PRODUCT BASKET

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OUR COMMODITY PIE

•MENTHA OIL

•COTTON

•CRUDE PALM OIL

•KAPAS

•KAPASKHALLI

•POTATO

•GUARSEED

•GUARGUM

• CRUDE OIL

• BRENT CRUDEOIL

• NATURAL GAS

• ALUMINIUM

• NICKEL

• COPPER• ZINC

• LEAD

• GOLD

• SILVER

BULLION 

BASEMETALS

AGROENERGY

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Potential still high up ….

GOLD VOLUMES ACROSS EXCHANGES

GOLD BASKET

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GOLD BASKET

GOLD 

Gold Regular

Ahmedabad

Gold Mini

Ahmedabad

Gold Guinea

Ahmedabad

Gold Petal

Mumbai

Quote 10 gms

Lot Size 1 Kg

+/- Rs. 100/tick

Quote 10 gms

Lot Size 100

gms

+/- Rs. 10/tick

Quote 8 gms

Lot Size 8 gms

+/- Rs. 1/tick

Quote 1 gm

Lot Size 1 gm

+/- Rs. 1/tick

Gold Petal

Delhi

Quote 1 gm

Lot Size 1 gm

+/- Rs. 1/tick

SILVER FUTURES VARIANTS

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Silver Regular Silver Mini Silver Micro

SILVER 

Quote = 1 Kg

Lot Size 30 Kg

+/- Rs. 30/tick

Quote = 1 Kg

Lot Size 5 Kg

+/- Rs. 5/tick

Quote = 1 Kg

Lot Size 1 Kg

+/- Rs. 1/tick

SILVER FUTURES VARIANTS

Silver 1000

Quote = 1 Kg

Lot Size 1 Kg

+/- Rs. 1/tick

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BULLION FUNDAMENTALS

Gold Consumption

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Gold Consumption

1759

617

373

287

228216

Jewellry

ETF

Industrial & DentalCoins

Investment

Total - 3480 Tons

At a time when gold peeked to $1900-Sep,2012CHINA

• 19% increase in jewellery demand• 22% increase in the sale of coins y-on-y

INDIA

• 15% increase in jewellery demand.• 52% increase in coins & bars y-on-y

US

• First increase in jewellery demand 7 years

• 43% increase in bar & coin sales y-on-y

GOLD i GOLD!!!!

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GOLD is GOLD!!!!

SITE THE OPPORTUNITY

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SITE THE OPPORTUNITY….. 

RETURNS - YEARLY %  Gold  Nifty  Silver  Crude Oil  Copper  USD/INR

2008  28.51  -51.84  -5.76  -47.11  -42.64  10.92009  21.37  71.46  44.91  77.48  120.94  -4.51

2010  24.22  17.25  72.84  9.86  15.87  -3.86

2011  31.71  -24.90  -10.21  29.58  -7.63  19.04

2012  12.70  27.35  12.73  -5.82  8.82  2.93

2013  -28.86  5.93  -16.86  21.68  5.55 12.95

CUMMULATIVE AVG 

14.9 7.54 16.3 14.3 16.8 6.24

Volatility -

Avg  Gold  Nifty  Silver 

Crude

Oil  Copper  USD/INR

2008  2%  2.81%  2.91%  3.46%  2.84%  1.22%

2009  1.28%  2.14%  2.04%  3.4%  2.6%  0.66%2010  0.95%  1.02%  1.65%  1.87%  1.77%  0.52%

2011  1.22%  1.32%  2.71%  2.3%  1.88%  0.53%

2012  0.77%  0.95%  1.50%  1.57%  1.19%  0.76%

2013  1.39% 1.30% 2.06% 1.57% 1.39% 0.81%

2014 * 0.90% 0.96% 1.53% 1.31% 1.10% 0.5%

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AGRO SEGMENT

AGRO SEGMENT

COTTON

COMPLEX

MENTHA OIL

LOT SIZE:360KG(2

DRUMS)

TICK : 10 PAISE

 

KAPAS

LOT SIZE:4 MTTICK :10 PAISE

 

KAPAS KHALLI

LOT SIZE:10 MT

TICK:50 PAISE

GUAR COMPLEX

COTTON

LOT SIZE:25 BALESTICK : RS 10 

CRUDE PALM OIL

LOT SIZE: 10 MT

TICK : 10 PAISE

 

POTATO

LOT SIZE:30 MT

TICK:10 PAISE

GUARGUM

LOT SIZE:1 MT

TICK: Re 1

GUAR SEED

LOT SIZE:1 MT

TICK: Re 1

CONTRACTS AT A GLIMPSE

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CONTRACTS AT A GLIMPSE

Commodity Current Price (Rs.)

Tick Size

(Rs.)

Contract

Size (Units)

Profit per

tick (Rs.) Contract value (Rs.) Approx. Margin 5 % in Rs. / lot

Crude 6516 1 100 100 651600 32580

Brent 6895 1 100 100 689500 34475

NG 225 0.1 1250 125 281250 14063

Gold 29700 1 1000 100 2970000 148500

Gold Mini 30153 1 100 10 301530 15077

Gold Guinea 24100 1 8 1 24100 1205

Gold Petal 3015 1 1 1 3015 150.75Silver 48900 1 30 30 1467000 73350

Silver Mini 48910 1 5 5 244550 12228

Silver Micro 48915 1 1 1 48915 2445.8

Copper 458 005 1000 50 458000 22900

Copper Mini 458 0.05 250 13 114500 5725

Zinc 116 0.05 5000 250 580000 29000Zinc Mini 116 0.05 1000 50 116000 5800

Aluminium 111 0.05 5000 250 555000 27750

Aluminium Mini 111 0.05 1000 50 111000 5550

Nickel 864 0.1 250 25 216000 10800

Nickel Mini 864 0.1 100 10 86400 4320

Lead 128 0.05 5000 250 64000032000

Lead Mini 128 0.05 1000 50 128000 6400

How to start : Mini Contracts

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How to start : Mini Contracts

BULLIONGOLD LOT SIZE SILVER LOT SIZE

GOLD MINI 100 GM SILVER MINI 5 KG

GOLD GUINEA 8 GM SILVER MICRO 1 KG

GOLD PETAL(Mumbai) 1 GM SILVER 1000 1 KG

GOLD PETAL (Delhi) 1 GM

BASE METALSCOPPER LEAD ZINC ALUMINIUM NICKEL

COPPER MINI LEAD MINI ZINC MINI ALUMINIUM MINI NICKEL MINI

250 KG 1MT 1MT 1MT 100 KG

Diversifying into gold

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Diversifying into gold

Particular GOLD MINI

GOLD

GUINEA

GOLD

PETAL(Mumbai)

GOLD PETAL

(Delhi)

Trading Lot 100 gm 8gm 1gm 1gm

Price* 30153 24100 3015 3015

Turnover

(Rs) 301530 24100 3015 3015

Per Rupee

Movement 10 1 1 1

Tick Size

(Rs) 1 1

Margin

required

(Rs) 15077 1205 150.75 150.75

Silver Lining

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Silver Lining

Silver

Particular SILVER MINI SILVER MICRO SILVER 1000

Trading Lot 5 Kg 1Kg 1Kg

Price* 48910 48915 48915

Turnover (Rs) 244550 48915 48915

Per Rupee

Movement 5 1 1

Tick Size (Rs) 1 1 1

Margin required (Rs)12228 2445.8 2445.8

Kick start

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Kick start

Base Metals

Particular Copper mini Zinc mini Lead mini Nickel mini

Aluminium

Mini

Trading Lot 250Kg 1MT 1MT 100Kg 1 MT

Price* 458 116 128 864 111

Turnover 114500 116000 128000 86400 111000

Per Rupee Movement 250 1000 1000 100 1000

Tick Size 5 paise / Kg 5 paise /Kg 5 paise / Kg 10 paise /Kg 5 paise /Kg

Margin required 5725 5800 6400 4320 5550

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Mini’s taking care of the Macro 

 Avenue for retail clients to test the markets.

Only exchange where delivery in Mini contracts ispossible.

Enables leveraging possible at multiple price levels by minimising risk.

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 And the Story for Commodities Remains Compelling..

Demand for asset backed investments will remain strong-in

times of uncertainty.

QE III winding up is a strong signal that the developed worldis reducing dependence on paper money and real demand isseeping in.

Low interest rates continue to encourage investors into realassets.

 A strong dollar and weak fundamentals arecounterbalancing.

Euro is providing enough room for asset backed investmentsto grow.

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WEBSITES

 www.forexfactory.com   www.reuters.com 

 www.bloomberg.com 

 www.kitco.com 

 www.investing.com 

 www.oilngold.com 

 www.basemetals.com 

 www.lme.com 

http://www.forexfactory.com/http://www.reuters.com/http://www.bloomberg.com/http://www.kitco.com/http://www.investing.com/http://www.oilngold.com/http://www.basemetals.com/http://www.lme.com/http://www.lme.com/http://www.basemetals.com/http://www.oilngold.com/http://www.investing.com/http://www.kitco.com/http://www.bloomberg.com/http://www.reuters.com/http://www.forexfactory.com/

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Free SMS Service (Push Based MCX price update)

Step:1

How to Register: -

• Go to www.mcxindia.com 

• Open the link MCX price update

through SMS Service

Step:2

Login

Step:3

Get Registered

http://www.mcxindia.com/http://www.mcxindia.com/

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The mentioned commodities name are being sent in the Push based SMS service.

• GOLD / SILVER• CARDAMOM /COTTON / KAPASKHALI/ KAPAS/ MENTHAOIL/ CPO/ POTATO

Free SMS Service (Push Based MCX price update)

Step:4

Commodity

Selection

Single Multiple

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GOLD DELIVERY PROCEDURE

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Delivery Procedure

DELIVER LOGIC: -COMPULSORY DELIVERY – Any seller having open

position on the expiry date fails to deliver then a penalty of 6.5% shall be

imposed.

 Tender Period: - 1st

  to 6th

  day of the contract expiry month.

 Delivery Period: -1st  to 6th day of the contract expiry month.

 Normal trading ends on the last day of the previous month prior to

the expiry month.

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Delivery Procedure

Pay-in of Commodities (Delivery by seller member): On the Tender days

by 6.00 P.M. except Saturday, Sunday and public holiday.

Pay- in of Funds: By 11:00 A.M. on Tender day + 1 basis.

Pay-out of Funds and Commodities (Delivery to Buyer Member): By 05:00

P.M. on Tender day +1 basis.

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Delivery Procedure

1st Day: 5% Delivery period margin on an incremental basis over5

days is levied on all the open positions.

Intention is received from buyers upto 6:00 pm and seller’s upto 6:00 pm.Intention received from the buyers and sellers are matched and marked fordelivery after market close.

Delivery Order Rate: Settlement/closing price of the 1st day.

Before seller’s gives intention for the Delivery he has to deposit goods atthe designated clearinghouse of Group 4 Securitas along with all the

documents that is mentioned in the Contract specification, on the sameday.

The very next day marked buyer has to deposit the funds in the exchange before payout, that fund will be transferred to seller in the evening.

li d

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Delivery Procedure

Close out of outstanding positions: All outstanding positions on theexpiry of contract not settled by way of delivery in the aforesaid manner will be settled as per the Due Date Rate.

DDR (Due Date Rate): DDR is calculated on 5th day or Expiry day of

the contract month. This is calculated by way of taking simple average oflast 3 days of the spot market of Ahmedabad.

Taxes, duties, cess and levies: Ex-Ahmedabad, Inclusive of allcharges/levies relating to import duty, customs to be borne by seller. But

excluding Sales Tax/ VAT, any other additional tax or surcharge onsales tax, local taxes and octroi to be borne by the Buyer.

Delivery Procedure

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Delivery Procedure

•  IN CASE OF FAILURE TO TAKE OR MAKE DELIVERY BY ANY OF THE PARTY A PENALTY

OF 2.5% IS LEVIED ON THE DEFAULTING PARTY.2% will be credited to IPF & 0.5% is credited

to counter party.•  4% is levied as replacement cost to defaulting seller/buyer :Out of which 90% is given to counter

party & 10% retained by Exchange as administrative charges

 ADDITIONALLY

•  On the date of default by the Seller, if spot price is higher by 6.5% or more than the DOR (Delivery

Order Rate), then the difference amount between Spot Price on default date minus (DOR + 6.5 %of DOR). e. g. DOR is ` 100 and Spot Price is ` 110, then the difference amount would be ` 3.5 i.e. `

110 -(100 + 6.50). Such difference will be charged to the seller.

•  On the date of default by the Buyer, if spot price is lower by 6.5% or more than the DOR (Delivery

Order Rate), then the difference amount between DOR minus (Spot Price on default date + 6.5 %of

DOR). e.g. DOR is ` 100 and Spot Price is ` 90 on default date , then difference amount would be

` 3.5 i.e. ` 100 - (90 +6.50). Such difference will be charged to the buyer.

•  Option of Delivery: It can be in physical or Demat form. If seller’s produce in Demat form the buyer get in Demat. If seller’s produce in physical form the buyer get in physical form.

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Charges  Gold  Silver 

 Vault Charges

Rs.35/- per kg per dayRs.3.5/- per 100 gmsper day and for GoldGuinea is Rs. 0.10 per

Guinea

Rs. 35/- for 30 kg barPer day.Upto maximum 90 days91 days plus–Rs 45 /

per l30 kg/ per day

Loading andUnloadingcharges

No loading/unloadingcharges for gold

Rs. 15/- per bar

Group 4 Vaulting Charges

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Delivery Procedure-Gold Petal

Close out of outstanding positions: All outstanding positions on the expiry ofcontract not settled by way of delivery in the aforesaid manner will be settled asper the Due Date Rate.

DDR (Due Date Rate): Exchange shall announce the DDR based on theMumbai Spot price for Gold (10gms) 995 purity, which shall be converted to 999purity (Gold Spot price 995 purity * 999/995), polled on the last day of the expiryof this Gold Petal contract by around 5.00pm. The arrived spot price will beconverted for 1 gms Gold Petal (Gold spot price per 10 gms X 1/10). No tradingshall be allowed after the declaration of DDR

Taxes, duties, cess and levies: Ex-Mumbai, Inclusive of all charges/leviesrelating to import duty, customs to be borne by seller. But excluding Sales Tax/

 VAT, any other additional tax or surcharge on sales tax, local taxes and octroi to be borne by the Buyer.