Tender period

13th, 14th and 15th days of contract expiry month by 6:00 p.m. on each day.

Pay-in of commodities (delivery by seller member)

On tender days i.e. 13th, 14th & 15th days of the contract expiry month.

Delivery Period

16th to 22nd days of the contract expiry month

Pay-in of funds

Within 2 days from the date of receipt of delivery with MCX certification.

Pay-out of funds and commodities (delivery to buyer member) 

90% on the day following the pay-in of funds and balance once buyer confirms picking up delivery from seller's designated place or seven days following the pay-in whichever is earlier. It is the seller's responsibility to keep goods in good condition till such seven days.

DELIVERY LOGIC 

SELLER'S OPTION. 
If the seller does not wish to give delivery, then there will be no penalty on the seller and the contract will be settled as per the Due Date Rate. However, if the seller submits intention to give delivery, and thereafter he fails to give delivery or if his delivery is rejected because of non conformity to quality specification, then he will be charged a penalty of 3% out of which 90% of such penalty shall be passed on to the buyer.

Delivery Lot

24 candy (50 bales - 85 quintals) with tolerance limit of 0.75 quintals (weight of each bale should be 170 kg with tolerance limit of 15 kg).

Odd Lot treatment

Not Applicable

Mode of Communication

Fax or Courier

Margin during tender and delivery period

25% on the outstanding position.

Exemption from margin during tender and delivery period

Margin is exempted on receipt of documentary evidence (viz., Warehouse Receipt and Quality Certificate) of tendering delivery with the Exchange during tender days 

Delivery Order Rate

At due date rate as decided on the expiry day.

Delivery Center

Deliveries can either be effected from the factory or godown where the Cotton is either ginned or pressed (i.e. producer's own godown where the goods are produced) or Govt. warehouse within the vicinity of the factory (STC warehouse or CWC godown within the taluka-district out of Octroi limits, if applicable) from the following designated centers

Surendranagar,Wadhwan, Lakhtar, Limbdi, Dhangadra,Viramgam, Kadi, Harij and Bawla
While the delivery can be effected from any location, however this will be subject to deduction of freight from the place of delivery to Surendranagar. The following freight deduction will be applicable. In case any dispute, Exchange's decision will be final.

• Within 31-70 Km of Surendranagar Municipal limit- Rs. 10 per bale shall be deducted from seller's account
• 70 Km and above of Surendranagar Municipal limit -Rs. 20 per bale shall be deducted from seller's account

Each delivery order issued shall be in multiples of minimum delivery lots and shall be designated for only one delivery center and one location in such center. The tenderer of delivery order shall also disclose the identity of the Member / Registered Non Member who shall be performing the delivery. The seller shall not issue delivery order at a place where there is restriction against movement of goods. In case, the seller is unable to give permit to the buyer, the same would be treated as No-Delivery and he shall be liable to pay such penalty as may be applicable for failure to tender delivery.

Legal Obligation

The members will provide appropriate tax forms wherever required as per law and as customary and neither of the parties will unreasonably refuse to do so.

Warehouse, Insurance and transportation charges

Borne by the seller upto pay-out date of funds or delivery, whichever is earlier.
Borne by the buyer after payout date of funds or delivery, whichever is earlier.

Taxes, Duties, Cess & Levies

Buyer pays the Sales Tax or submits relevant form, whereas all other charges, levies or APMC Cess applicable at the delivery center will be on account of sellers. The buyer will pay VAT, if implemented in the state where the delivery center is located. In case of Inter-State movement, buyer has to submit requisite forms or pay CST as applicable. Post lifting delivery all charges are borne by the buyer.

Weighment at the time of delivery
and treatment of short delivery or excess delivery.

Weighment will be done by independent surveyor which will be final. Buyer may send his representative while surveyor is weighing and drawing the sample to supervise the Surveyor is following the right procedure as mentioned by MCX. In case of non-availability of buyer's representative, the seller shall claim and receive compensation for delay in delivery in terms of warehouse charges, insurance charges etc. as decided by Exchange. Delivery shall be treated as complete if the seller delivers the quantity within the limits as prescribed by the exchange. Delivery will be rejected if it is below the minimum permissible limit. In case the delivered quantity exceeds the maximum permissible limit the balance quantity shall be treated as excess.

In case of shortage in delivery, the buyer shall be entitled to claim the difference between the price payable as per the delivery order and the market price on the date of delivery from the seller if the spot market price is higher. Similarly, in case of excess delivery the buyer will pay for the excess quantity at the delivery order price or the spot market price on the date of delivery, whichever is lower.

Transfer of delivery

Warehouse receipt(s) shall be endorsed in the name of the buyer on completion of delivery pay-in and pay-out

Warehouse Charges, Insurance Charges & Transportation Charges

Borne by the Seller upto Payout Date of funds or Delivery  whichever is earlier. 
Borne by the Buyer after Payout Date of funds or Delivery  whichever is earlier.

Adjustment of transportation cost for delivery made at a center other than Mumbai

The seller will bear the cost of transportation from the center where the delivery is actually made and upto Surendranagar for any delivery made at a center other than Surendranagar as per the abovementioned rule.

Endorsement of Delivery Order

The buyer member can endorse delivery order to a client or any third party with full disclosure given to MCX. Responsibility for contractual liability would be with the original assignee. 

Extension of Delivery Period

As per exchange decision due to a force majeure or otherwise

Due Date Rate

Exchange shall take spot prices from a panel of different entities from spot market and shall compute the daily average price from the prices taken on a day from different entities. Due date rate will be calculated by way of taking simple average of last 3 days of the spot market prices so computed. Prices taken from the panel member shall be Ex-Surendranagar excluding all taxes.

Applicability of Business Rules

The general provisions of Business Rules & decisions taken by FMC/ Board / Executive Committee in respect of matters specified above will apply mutatis mutandis. The Exchange may further prescribe additional measures relating to delivery procedures, warehousing, Quality Certification, Margining, risk management from time to time. In case of any interpretational dispute or clarifications the decision of the Exchange shall be final and binding on the members and others.

Steps to be followed for delivery

Intention of delivery by buyers

13th, 14th and 15th days of contract expiry month by 6:00 p.m.

Tender notice by seller

13th , 14th and 15th days of contract expiry month by 3:00 p.m.The tender notice in legal parlance would mean just an intention of making delivery and not an actual sale. Members shall not square off his outstanding position to the extent of tendered quantity and such tender notice shall be submitted to the exchange in the format specified along with proof of delivery.

Dissemination of Information on Tendered Delivery on Trader Work Station.

The Exchange will inform members through trader workstation regarding tender and delivery intentions of the buyer members and the seller members upto 7.00 p.m. on the tender days.

Buyer's Inspection

The buyer can do the quality testing once through an Exchange Designated Certifier if deemed suitable, in case there is any difference between the two certificates of the Seller & Buyer, then they can negotiate a price and mutually settle the contract, failing which the exchange would send a third sample to another Quality Certifier, which will be binding on both parties.

Buyer's Obligation

Buyer has to take allocated delivery failing which 3% penalty is levied against him out of which 90% will be passed on to the seller. Further, the buyer will not have any option about choosing the place of delivery and will have to accept the delivery as per allocation made by the Exchange. Once a delivery is allocated to Buyer, he shall not square off his outstanding open position.

Lifting of Delivery

Within 7 days from delivery allocation date subject to taking delivery of at least 1/7th of total delivery allocated on each day. In case a Buyer fails to lift delivery within aforesaid days, the seller shall claim compensation in respect of warehouse charges, insurance charges, etc. Similarly, if seller fails to give delivery on the scheduled date because of non availability of seller's representative, the buyer shall claim and receive compensation @ Rs. 50/- per delivery lot each day till default continues. The buyer and seller will indicate to each other about delivery schedule of the said commodity with a copy to MCX within 1 day of getting delivery document.

Delivery Confirmation

By the buyer within 7 days from the date of receipt of delivery orders. In case not received, then the delivery is deemed to have been accepted, provided the buyer has raised any objection and the Exchange has accepted the objection, subject to final decision.

Allocation of Delivery

Delivery is allocated on 15th day of the contract expiry month after closure of market - first amongst the willing buyers and then amongst the other buyers.

Delivery Order

Delivery Order will be submitted in specified format giving details of Members / Registered Non-Members who shall perform delivery. The delivery can be effected from exchange designated warehouse or from seller's factory or godown where the Cotton is either ginned or pressed. The procedure followed for drawing samples and carrying out test analysis shall be as per EICA Bye-Laws. Delivery order once submitted cannot be withdrawn or cancelled or changed unless so agreed by MCX in writing. Members tendering the delivery order shall clearly specify the grade and shall be in conformity with the surveyor's certificate accompanied with the delivery document and cannot be changed subsequently.
MCX Certification will be final. If buyer still wants to appeal one chance will be given but then its Final.

Close out of open Positions and Penalty on defaulting seller.

All the open positions on the expiry of contract will be settled as per the due date rate and the respective pay-in and pay-out of funds of such closed out positions shall be effected by 11:00 a.m. on 16th day of contract expiry month.