Know the contract specifications of gold petal and it covers 1) Contract Launch Calendar of Gold Petal 2) Delivery and Settlement Procedure of Gold Petal Contract
|Contract Listing||Contracts are available as per the Contract Launch Calendar.|
|Contract Start Day||1st day of contract launch month. If 1st day is a holiday|
then the following working day.
|Last Trading Day||Last calendar day of the contract expiry month. If last calendar day is a holiday then preceding the working day|
|Trading Period||Mondays through Fridays|
|Trading Session||Monday to Friday: 9.00 a.m. to 11.30/ 11.55 p.m.|
|Trading Unit||1 gram|
|Quotation/Base Value||1 gram|
|Price Quote||Ex-Mumbai (inclusive of all taxes and levies relating to import duty, customs but excluding GST, any other|
additional tax, cess, octroi or surcharge as may be applicable)
|Maximum Order Size||10 kg|
|Tick Size (Minimum Price|
|Re. 1 per 1 gram|
|Daily Price Limits||The base price limit will be 3%. Whenever the base daily price limit is breached, the relaxation will be allowed upto 6% without any 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 relaxed upto 9%|
In case price movement in international markets is more than the maximum daily price limit (currently 9%), the same may be further relaxed in steps of 3% informed to
|Initial Margin*||Minimum 4% or based on SPAN whichever is higher|
|Extreme Loss Margin||Minimum 1%|
|Additional and/ or Special Margin||In case of additional volatility, an additional margin (on both buy & sell side) and/ or special margin (on either|
buy or sell side) at such percentage, as deemed fit; will be imposed in respect of all outstanding positions.
|Maximum Allowable Open Position||For individual clients: 5 MT or 5% of the market wide open position, whichever is higher for all Gold contracts combined together.|
For a member collectively for all clients: 50 MT or 20% of the market wide open position, whichever is higher for all Gold contracts combined together.
|Delivery Unit||1 gram|
|Delivery Period Margin**||Delivery period margins shall be higher of: a.3% + 5 day 99% VaR of spot price volatility or|
|Delivery Center(S)||Mumbai and additional delivery centers at Ahmedabad|
and New Delhi.
|Quality Specifications||999 purity,|
LBMA approved suppliers or other suppliers as may be approved by MCX, to be submitted along with supplier’s quality certificate/certicard which mentions the serial number and accompanies the
gold 1 gram coin.
|Due Date Rate (Final Settlement Price)||Exchange shall announce the DDR based on the Mumbai Spot price for Gold (10gms) 995 purity, which shall be converted to 999 purity (Gold Spot price 995 purity * 999/995), polled on the last day of the expiry of this Gold Petal contract by around 5.00pm. The arrived spot price will be converted for 1 gms Gold Petal (Gold spot price per 10 gms X 1/10).|
No trading shall be allowed after the declaration of DDR
*The Margin Period of Risk (MPOR) shall be 2 days in accordance with SEBI Circular no. SEBI/HO/CDMRD//DRMP/CIR/P/2016/77 dated September 01, 2016 accordingly, the initial margin shall be scaled up by root 2.
**As per SEBI directive SEBI/HO/CDMRD/DRMP/CIR/P/2016/77 dated Sep 01, 2016
Contract Launch Calendar of Gold Petal
|Contract Launch Months||Contract Expiry Months|
|July 2019||October 2019|
|August 2019||November 2019|
|September 2019||December 2019|
|October 2019||January 2020|
|November 2019||February 2020|
|December 2019||March 2020|
(Reference Circular No. MCX/TRD/350/2019 dated June 28, 2019)
Delivery and Settlement Procedure of Gold Petal Contract
|Delivery logic||Compulsory Delivery|
|Last day of|
|Last calendar day of the contract expiry month. If last|
calendar day is a holiday then preceding working day
|Tender Period||5 preceding working days before the contract expiry month|
|Delivery Period||Two working days after the contract expiry|
|Tender Period Margin||5% incremental margin for last 5 working days on all outstanding positions. Such margin will be addition to initial,|
additional and special margin as applicable
commodities (delivery by seller member)
|E+2 working days: 12.00 p.m. (E stands for expiry) except Saturdays, Sundays and Trading Holidays. The seller will have to do the delivery pay-in through ComRIS Account by earmarking his existing valid commodity balance in the ComRIS Account towards the pay-in obligation.|
On expiry all the open positions shall be marked for delivery.
|Funds Pay-in||E+2 working days: 12.00 p.m.|
|Delivery Pay-out||E+2 working days: 2.00 p.m.|
|E+2 working days: 2.00 p.m.|
|Packaging||1 Gram Gold Coin with tamper proof only.|
Mode of communication
|Delivery Period Margin||Delivery period margins shall be higher of:|
a. 3% + 5 day 99% VaR of spot price volatility Or
|Exemption from margin during delivery period||Margin is exempted on receipt of delivery pay-in through ComRIS Account by earmarking existing valid commodity balance in the ComRIS Account towards the pay-in obligation.|
|Penal Provision||Seller Default:|
3% of Settlement Price + replacement cost (difference between settlement price and higher of the last spot prices on the commodity pay-out date and the following day, if the spot price so arrived is higher than Settlement Price, else this component will be zero.)
Norms for apportionment of penalty –
Over and above the prescribed penalty, MCXCCL shall take suitable penal/ disciplinary action against any intentional / wilful delivery default by seller.
Buyer default shall not be permitted.
|As per the DDR on the expiry day.|
|Mumbai and additional delivery centers at Ahmedabad and|
|Procedure for taking delivery at additional delivery centres|
|Deliverable grade of|
|The selling members tendering delivery will have the option of delivering such grades as per the contract specifications. The buyer has no option to select a particular grade and the|
delivery offered by the seller and allocation by the MCXCCL shall be binding on him.
|Buyer default shall not be permitted.|
|Close out of||All outstanding positions on the expiry of contract, not settled by|
|way of delivery in the aforesaid manner, will be settled as per the due date rate with penalty as per penal provisions.|
|Verification by the Buyer at the time of release of delivery||At the time of taking delivery, the buyer can check his delivery in front of designated vault personnel. If he is satisfied with the quantity and quality of material, then Vault will release the goods. If Buyer is not satisfied with the quality, he can request for assaying by any of the MCXCCL approved Independent Assayers. If the buyer chooses for assaying, designated vault person will carry the goods to the Assayer’s facilities, get it assayed and bring it back to designated vault along with assayer’s certificate. The report shall be final and binding on both buyer and seller. In case of Variation in quality in the Independent Assayer’s report from the original report submitted, the buyer and seller will have to mutually negotiate the final settlement proceeds within 1 working day from receipt of assayer’s report. The cost of this assaying as well as cost of transportation from designated vault to assayer’s facilities to and fro will be borne by the buyer. The vault charges during such period will be borne by the buyers. If the buyer does not opt for assaying at the time of lifting delivery, then he will not have any further recourse to challenge the quantity or quality subsequently and it will be assumed that he has received the quantity and quality|
as per the delivery obligation by the seller.
|Validation Process||On receipt of delivery, the designated vault personnel will do the following validations:|
Any other validation checks, as they may desire.
|Delivery Process||In case any of the above validation fails, the designated vault will contact the MCXCCL office and take any further action, only as per instructions received from the MCXCCL in writing. If all validations are through, then the designated vault personnel will put the 1 Gram Gold Coin in the vault. Then the custodian of designated vault will issue appropriate|
receipt for having received the goods.
|Quality Adjustment||The price of 1 Gram Gold Coin is on the basis of 999 purity. In case a seller delivers 9999 purity, he would get a premium. In such case, the sale proceeds will be calculated by way of|
Due Date Rate * 9999/ 999
|Procedure of taking delivery from the Vault||For the purpose of taking delivery of goods fully or partially, the Member shall raise withdraw request in ComRIS and send an Authority letter on his letter head to the MCXCCL, authorising a representative on his behalf to take the delivery. The Authority letter sent by the Member shall consist of the following details:|
The above-mentioned details are required to be sent to the MCXCCL. Once the MCXCCL receives the above-mentioned details, the MCXCCL will send it to the Vault authorities directly.
Based on the said details, the Vault will issue the requested quantity to the authorised representative who has to present himself personally at the Vault along with the requisite photo identity proof in original, the copy of which was sent / communicated to the MCXCCL by its Member.
The Vault officials will, upon final scrutiny/checking of the identity, deliver goods to the representative of the Member. The Vault officials in case of any discrepancy or doubt or any other reason may refuse to issue the goods to the representative under the intimation to the MCXCCL.
The delivery given to the representative shall be final & binding to the Member and their constituents at all times.
|Taxes, duties, cess and levies||Ex-Mumbai, Inclusive of all charges/ levies relating to import duty, customs to be borne by Seller. But excluding GST, any other additional tax, cess, octroi or surcharge as may become due & payable under any law, rules or regulations,|
applicable from time to time, to be borne by the buyer.
|Endorsement of delivery order/delivery||The buyer member can endorse delivery order/delivery to a constituents or any third party with full disclosure given to the|
MCXCCL. Responsibility for contractual liability would be with the original assignee.
|Vault, Insurance and|
|Borne by the seller till the date of pay-out of delivery and the buyer after the date of pay-out.|
|As per MCXCCL decision due to a force majeure or|
|Making charges for taking|
|Buyer shall have to pay Rs.100/- (over and above the DDR) per 1 Gram Gold Coin as a making charges, which|
shall be paid to the seller.
|Legal obligation||The members will provide appropriate tax forms wherever required as per law and as customary and neither of the|
parties (seller member and buyer member) will unreasonably refuse to do so.
|Applicability of Regulations||The general provisions of Byelaws, Rules and Regulations of the MCXCCL and decisions taken by SEBI/ the Board of Directors/ Relevant Authority of the MCXCCL in respect of matters specified in this document shall form an integral part|
of this contract. The MCXCCL or SEBI, as the case may be, may further prescribe additional measures relating to delivery
|procedures, vaulting, quality certification, margining, and risk management from time to time.|
Members and market participants who enter into buy and sell transactions on MCX need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the MCXCCL’s Bye Laws, Rules, Regulations, circulars, directives, notifications of the MCXCCL as well as of the Regulators, Government and other authorities.
It is the sole obligation and responsibility of the Members and market participants to ensure that apart from the approved quality standards stipulated by the MCX, the commodity deposited / traded / delivered through the Approved warehouses/Vaults of MCXCCL is in due compliance with the applicable regulations laid down by authorities like BIS, Orders under Packaging and Labelling etc., as also other State/Central laws and authorities issuing such regulations in this behalf from time to time, including but not limited to compliance of provisions and rates relating to GST, APMC Tax, Mandi Tax, LBT, octroi, stamp duty, etc. as may become due & payable under any law, rules or regulations, applicable from time to time on the underlying commodity of any contract offered for deposit / trading / delivery and that MCX/MCXCCL shall not be responsible or liable on account of any non-compliance thereof.
All the Sellers giving delivery of goods and all the buyers taking delivery of goods shall have the necessary GST Registration as required under the Goods & Service Tax (GST) Act and obtain other necessary licenses, if any.
In respect of all contracts executed by the Members on MCX, it shall be the responsibility of the respective members to pay all applicable statutory fee, stamp duty, taxes and levies in respect of all deliveries as well as futures contracts directly to the concerned Central/State/Local Government Departments and the MCX/MCXCCL shall not be held liable or accountable or responsible on account of any non- compliance thereof.
The buyer shall have to lodge their claim against quality and/or quantity of goods/ delivery allocated to them while retaining disputed goods in the designated vault itself (without lifting them out of the vault), if any, within 48 hours from the date of scheduled pay out of the MCXCCL and failing which, no claim shall be entertained by the MCXCCL thereafter.
The MCXCCL is not responsible and shall not be held liable or accountable or responsible for value of the goods/stock of the
commodities stored/lying in MCXCCL designated warehouse/s, vault agency and which is fully/partially confiscated / seized by
|any local or statutory or any other authority for any reason whatsoever or for any deterioration in quality of the goods stored due to above reason or which have passed the Final Expiry date and continue to remain in the MCXCCL accredited warehouse.|
The decision of the MCXCCL shall be final and binding to all Members and their constituents in this regard. (The interpretation or clarification given by the MCXCCL on any terms of this delivery and settlement procedure shall be final and binding on the members and other market participants.)
(Reference Circular no. MCXCCL/C&S/147/2019 dated Jun 28, 2019).