cottonseed 16 mt

8/8/2019 Cottonseed 16 MT

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National Spot Exchange Limited

Circular

Ref. No.: NSEL/TRD/2009/171 December 1, 2009

Dear Members,

Commencement of Spot Trading in Cottonseed Wash Oil Ex-Kadi T+2 Contract

In terms of the provisions of the Rules, Bye-Laws and Business Rules of the Exchange,the Members of the Exchange are notified that Cottonseed Wash Oil Ex-Kadi Contractwill be launched for trading on Wednesday the 2nd December, 2009.

Contract details and settlement procedure are as under:

1) Contract Specifications - enclosed as Annexure 1,2) Deductions and Quality Parameter enclosed as Annexure 23) Charges relating to Trading, Settlement and delivery - enclosed as Annexure 34) Procedure, norms, conditions of delivery, quality and withdrawal procedure -

enclosed as Annexure 4

5) Other Terms and conditions enclosed as Annexure 56) Auction procedure - refer circular no. NSEL/C&S/2008/029 dated 26th

November 2008.

The terms and conditions of the above referred contract and the process relating to thesettlement thereof will be binding on all the members of the Exchange and clientstrading through them.

For any clarification, the following officials of the Exchange can be contacted.

1) Mr. Amit Mukherjee at +91 9930267951 or through email [email protected] and

2) Mr. Mitesh Chikhaliya at +91 9712785165 or through email [email protected]

For and on behalf of

National Spot Exchange Ltd.

Narsing RaoVice President

Encl.: As above

-------------------------------------- Registered office --------------------------------------102-A, Landmark,Suren Road, Chakala, Andheri (East), Mumbai 400 093

Tel.: 022 6761 9900 Fax: 022 6726 9525www.nationalspotexchange.com email: [email protected]
mailto:[email protected]:[email protected]


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Annexure 1

Contract Specifications of Cottonseed Wash Oil Ex-Kadi (T+2) Contract

Commodity Details

Commodity Cottonseed Wash OilSymbol CWOILKADI2

Description Indian Cottonseed Wash Oil

Contract Specifications

Daily Contract Buying and selling on intraday basis will be permitted, but all

positions outstanding at end of trading session on the same day

must result into compulsory delivery

Trading Period Monday to Saturday except Exchange specified holidays in

advance.

Trading Session Monday to Friday - 10:00 AM to 6:00 PM

Saturday - 10:00 AM to 3:30 PM

Trading Related Parameters

Trading Unit 16 MT

Quotation/Base Value 10 Kg

Tick Size (minimum

price movement)

10 paise

Daily Price Limits 3%

Price Quote Ex-Kadi NSEL warehouse exclusive of Sales Tax / VAT ifapplicable and other taxes if any.

Initial Margin 5%

Maximum Order Size 96 MT

Delivery Related Parameters

Delivery Unit 16 MT (with tolerance limit of 5%) which means that if the

seller delivers any quantity between 15.20 MT to 16.80 MT, it

will be construed as adequate discharge of his delivery

obligation of 16 MT, though he will get the value only for actual

quantity delivered by him.

Delivery Period Margin 15%

Delivery Center(s) Within 10 km radius of Kadi Taluka Area, Dist. Mehsana,Gujarat 382721

Delivery Logic Compulsory

Auction Related Parameters

Symbol for auctionBuy-in

ABCWOILKD2

Symbol for auctionSell-out

ASCWOILKD2

Auction period 5:00 PM to 5:30 PM on the T+2 day


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Settlement Schedule

Particulars Day Pay-In Pay-Out

Mark-to-Market T+1 Up to 11:00 AM At 12:00 Noon

Funds Normal T+2 Up to 1:00 PM At 5:30 PM

Commodities Normal T+1 Up to 5:00 PM ---

Commodities Normal T+2 --- At 5:00 PM

Funds Auction T+3 Up to 12:00 Noon At 1:00 PM

Details of Exchange Designated Warehouses and Approved Quality Assayer

Name of Quality

Certificate Agency

M/s. National Spot Exchange Ltd.

Contact Person Mr. Nimesh PatelCell 09825096789

Address of the

Warehouse

Tank No. 8

Plot No.880, Village Thor,Kadi Thor Road, Taluka Kadi,Dist. Mehsana (N.Gujarat)Gujarat 382721

Contact Person Mr. Mitesh Chikaliya

Mobile: 09712785165

Email [email protected]

[email protected]@nationalspotexchange.com

Warehouse timings 7:00 AM to 8:00 PM


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Annexure 2Quality Parameter

Quality Parameter and Quality related deductions

Parameters Units Basis

Description It shall be clear, free from rancidity,

suspended or other foreign matters, separated

water, added flavoring or coloring substances

or mineral oil. It shall confirm to PFA

specifications. Cottonseed oil is obtained from

the expelling and solvent extraction of whole

cottonseed (Gossypium hirsutum).

Colour on Lovibond Scale

(1/4"Cell,Y+5R)

Units 40.0 max.

Free Fatty Acid Content % Oleic acid 0.20 max.Moisture Insoluble & Volatiles % 0.15 max.

Refractive Index at 40C --- 1.4630 to 1.4600

Saponification Value --- 192 to 197

Iodine Value (Wijs) --- 102 to 110

Unsaponifiable Matter %,W/W 1.5 Max.

Flash Point C Not less than

250C

Bellier Turbidity Test C 19 to 21

Halphans Test Positive

Test for Adulteration* Negative

Specific Gravity at 30/30C 0.910 to 0.920

Soap Content ppm 50 max.

GLC Report should pass

Palmitic Acid % 22 to 26

Oleic Acid % 17 to 24

Linoleic Acid % 50 to 56

Linolenic Acid % 0.2 max.

Bleachability 95%

Test for Adulteration *, include Argemone, Mineral, Castor, Linseed oils.


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Annexure 3Charges relating to Trading, Settlement and delivery

Cost of transaction: In respect of trading, delivery and settlement of CottonseedWash Oil, the following charges shall be applicable:

S.N. Charges Amount Remarks

1. Transaction charges Rs. 25 per MT payable by

the seller and Rs. 25 per

MT payable by the buyer.

This will apply on all transactions,

whether squared off on the same day

or results into delivery.

2. Delivery related charges

Transfer of

warehouse receipts

Rs. 50 per lot of 16 MT

payable by both buyer

and seller separately

This will apply in all cases, wherever

delivery of goods takes place,

irrespective of fresh stock being

deposited or transfer of warehouse

receipts pertaining to existing

warehouse stock.

3. Storage Charges Rs. 125/- per MT for 1

month.

The billing cycle will be for 1 month i.e.

Even if the storage will be for 20 days

the applicable charges will be for 1

month.


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Annexure 4

Procedure, conditions, norms of Deposit, Quality check and Withdrawalof Commodity

Deposit & Quality Check

The members and their clients willing to deposit commodity in the Exchangeaccredited warehouse are advised to note the below mentioned procedure /conditions / norms.

1. Members and their respective clients willing to deposit commodity in theExchange Warehouse or Exchange accredited warehouse will be required

to give at least 1 day prior intimation to the warehouse for necessary

storage arrangements. Based on the intimation received from the

depositor, delivery schedule will be intimated by the warehouse

supervisor. Loading and Unloading of commodity will be done on first cum

first serve basis.

2. The commodity should reach the designated warehouse latest by 5.00 PMon any working day up to T+1 (5.00 p.m.), in order to have a hassle free

delivery of commodity.

3. Members and their respective Clients willing to deposit commodity for PRECERTIFICATION in the Exchange accredited Warehouse will require

to contact Warehouse Manager in advance for availability of space for

necessary storage and Certification arrangements. Based on the

intimation received, the depositor may bring and deposit commodity atExchange accredited Warehouse with the duly filled form as per the

Annexure 7.

4. There is no discretion between any origins states within the country andhence stocks will be accepted based on the contract specifications as

specified by the Exchange.

Quality Inspection & Sampling Procedure:

1. Any member desirous of depositing Cottonseed Wash Oil at ExchangeAccredited Storage Tanks shall send their tank lorries to exchange

authorized surveyor and their laboratories at Kadi for quality inspectionand analysis before unloading into the exchange accredited storage tankslocated at Kadi.

2. Factory seals placed on the tank Lorries are checked and broken by theexchange authorized surveyor.

3. Samples are then drawn by the exchange authorized surveyor from thebottom valve of each compartment of each tank lorry and mixed to form

one representative Bottom sample.

4. Samples are also drawn by the exchange authorized surveyor from thetop manhole of each compartment of each tank lorry and mixed to formone representative Top sample.

5. The inlets and outlets are resealed with the exchange authorized surveyormonogram seals.

6. Both samples are registered and entered into the exchange authorizedsurveyor laboratory for analysis.


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7. Cargoes meeting contractual specifications are accepted, certified anddispatched onward to the storage tank at Kadi for unloading.

8. Cargoes not meeting the specification are rejected and returned to thesupplier / seller. A certificate of rejection is issued.

9. The nominated tank is internally inspected by exchange authorizedsurveyor for its cleanliness at accessible points prior to receipt of cargo at

the installation.

10.Pipelines, pumps, hoses and valves are also inspected by exchangeauthorized surveyor at accessible points prior to receipt of nominatedcargo

11.On arrival of the tank Lorries at the storage installation at Kadi, exchangeauthorized surveyors verify the seals placed on the tank Lorries.

12.Weight of each tank lorry is supervised over a weighbridge beforeunloading.

13.Bottom samples are visually checked before the tank lorry is allowed tounload into the shore tank.

14.Unloading of material into the storage tank is supervised by exchangeauthorized surveyor.

15.On completion of unloading, weighment of empty tank Lorries aresupervised.

16.Storage tanks are gauged and sealed after every operation by exchangeauthorized surveyor.

17.Storage tanks are sampled two times every week. Bottom samples aredrawn separately.

18.The deductions on account of contract specifications shall be dulymentioned in the quality certificate. The decision of the Exchange and itsAuthorized Surveyor shall be final and binding on all in respect of thedelivery, method of sampling and analysis, samples taken and the size ofthe samples for ascertaining the quality. In case the Buyer raises qualityissues subsequently, the same will be redressed as per the Bye-laws/Business Rules of the Exchange.

19.Any stock brought to the warehouse will be checked for quality andquantity. There upon warehouse receipt will be issued with a maximumvalidity of 12 months subject to crop year.

20.All deposits during the crops season period November to October will beissued a quality certificate with validity upto October next year.

21.On expiry of the validity period of the stocks deposited, the stocks willhave to be revalidated.


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Issue of Warehouse Receipt

Warehouse receipt (on delivery unit basis i.e. 16MT.) along with a qualitycertificate will be issued by designated warehouse for all Cottonseed Wash Oilkept in the designated warehouse. The process flow for issuance of WarehouseReceipt, Quality Certificate along with other documents would be as under:

Where D stands for the date of deposit of the commodity in the warehouse

Document Issued by Period Annexure

Quality Certificate Quality CertifyingAgency

D Upto 5:00 PM -

Commodity InwardDocument (CID)

Depositor D - Upto 5:00 PM 7

Warehouse Receipt Warehouse D+1 Upto 1:00 PM -

Withdrawal (Delivery out of Commodity from Exchange designatedWarehouse):

1. Members are required to give at least 1 day prior intimation to thewarehouse for necessary arrangements. Based on the intimation receivedfrom the withdrawer, delivery schedule will be intimated by thewarehouse supervisor. Loading of Cottonseed Wash Oil will be done on

first cum first serve basis. No vehicle will be allowed for withdrawing thegoods after 8.00 PM in the evening. The warehouse managers decisionwill be final in this case.

2. The Depositor, who wishes to withdraw his stock may get the commodityQuality checked. In case of any variations of the quality from quality

specification in the storage receipt, the premium/discount would beadjusted subsequently.

3. The buyer member shall submit the Letter of Authority requesting theWarehouse manager to issue the delivery of Commodity to the bearer ofthe Authority Letter along with original Copy of the Warehouse Receipt.

The Members are advised to instruct their representative to carry theidentity Proof which has been mentioned in the letter of authority (IDproof of his representative such as Voter ID / PAN/ Passport to enable theExchange) along with the Original Authority Letter and Original

Warehouse Receipt for lifting the stock from the accredited warehouse.


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Annexure 5Other Terms and conditions

Delivery logic: Compulsory delivery. Transactions on intra-day basis will be permitted

and all positions outstanding at end of the trading day will result into compulsorydelivery.

Mode of communication: Official Communication with the exchange in regards to

commodity delivery should be done only through E mail / Fax or courier.

Exemption from Delivery period margin for Seller: Delivery Period Margin will be

exempted if the seller submits warehouse receipt and quality certificate i.e.

CERTIFIED STOCK on or before the closing hours of the trading day. The

commodity will be called as CERTIFIED STOCK when the commodity is deposited

at Exchange Accredited Warehouse and Quality Certificate is issued.

Taxes, Duties, Cess and Levies: EX- WAREHOUSE Kadi. (Total VAT applicable incottonseed wash oil is 5% i.e. VAT @4% plus additional VAT @ 1%) Inclusive of allcharges / taxes if applicable till delivered at Warehouse, but excluding VAT/ CST.Seller will issue invoice in the name of the buyer, reflecting the CST/VAT/H form asmay be applicable. In case of sale against Export order or Inter-state purchase, Buyerhas to submit requisite forms and pay applicable CST. Post lifting delivery charges areborne by the buyer.

All the Buyers / Sellers tendering commodity / or taking delivery shall have necessaryRegistration from the applicable Tax Authorities and obtain other licenses, if any,

required by them. In case the seller / Buyer does not have a Sales Tax Registrationnumber, then he shall appoint an Agent/Nominee who has the required TaxRegistration and deliver / take the goods through him.

The Member giving delivery and the Member taking delivery will exchange appropriatetax forms as provided in law and as customary and neither of the parties willunreasonably refuse to do so. In case any of the member or his client fails to providenecessary forms in respect of sales tax resulting into pecuniary loss to the other party,

the Exchange will impose a charge on the party in default and after collection thereof,will pass on the same to the member, who or whose client has suffered such loss. Inaddition to above, the Exchange can impose additional penalty on the party in default.

Purchase against Export Order: The buyers desiring to purchase against form H,shall be allowed for exemption from payment of VAT on remittance in cash orsubmission of Bank Guarantee/FDR pledged in favour of National Spot Exchange to

the extent of VAT liability

Deliverable grade of commodity: The selling members tendering delivery will have

to deliver such grades as may be acceptable 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 Exchange shall be binding on him.

Closing Price: Closing Price shall be calculated by the Exchange at the close of the

trading session for the commodity. All trades will be marked-to-market as per such

Closing price, which will be settled by payin / pay-out day. All outstanding positions

at end of trading session will be settled by delivery and payment at the closing price.


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Delivery allocation: Delivery will be allocated at client level after the pay-in of

commodities.

Odd Lot Treatment: Deliveries must be in multiple 16MT with a tolerance limit of +/-

5%.

Tax Invoice: The respective Clients of Members or the Member himself in case he

sells on his own account, after execution of sale shall have to raise invoice in triplicateOne copy for the onward delivery to the buyer, one copy to be sent to exchange andthe third to be retained by the seller for his own records (format enclosed as Annexure

6).

Warehouse, Insurance and Transportation charges: As specified in Annexure-3

Extension of delivery period: As per decision of the Exchange due to a force

majeure or otherwise.

Legal obligation: The members will provide appropriate tax forms wherever requiredas per law and as customary and neither of the parties (seller member and buyermember) will unreasonably refuse to do so.

Applicability of Business Rules: The general provisions of Business Rules of the

Exchange and decisions taken by the Board of Directors and Executive Committee of

the Exchange in respect of matters specified above will apply mutatis mutandis. The

Exchange may further prescribe additional measures relating to delivery procedures,

warehousing, quality certification, margin and 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


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Annexure 6Format of Tax Invoice

TAX INVOICE

Buyers Name

Buyers Address

Buyers LST/ VAT RegistrationNumber

Delivery Order /Challan No./Date ofTransaction

_____________/_____________

Invoice No. Invoice Date

Sr.No.

Particulars Weight(Kg)

Rate(Rs./Kg./Quintal

)

Amount(Rs)

Cottonseed Wash Oil

-

Less Discount -

Tax/VAT@5%

Total Amount -

Freight Charges -

Other Charges -

Gross Total

Rupees

..........................................................................................................................

........

Date:

Place: Seal AuthorizedSignatory.

*VAT TIN No.: - w.e.f.

*CST TIN No.: - w.e.f.

APMC licence No.

(* Sellers VAT /CST No.)

Original Copy


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Annexure 7

Commodity Inward Document (CID)

Serial No. Pre-printed Date:

Warehouse

Warehouse Name :

Address :

Depositor Details

Name :

Address & Contact No.: :

Contact Person: :

Commodity Details

Commodity Name :No. ofBags/Units :

Weight of Commodity : MT

(Including/excluding gunny

wt.)

Lot No. Details

Spot Rate / Qntl / KG

Weighbridge Details

Name: :

License No. :

Mode of Warehouse Receipt ( )

Beneficiary Name :

Sampling Details

Sampling Agency

No. of Samples

Name & Signature of Sampler

Remarks

Signature of Client /Representative :

Name of Client/ Representative :

Signature of Warehouse Manager/Service

Provider :

Name of Authorized Person :

Note:

a) The expression "Depositor/Client includes any persons or Bank that lawfully holds, or isthe holder in due course of the receipt issued by the Warehouse manager in respect ofthe goods and derives title thereto by endorsement or transfer by the depositor or hislawful transferee.


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b) Acknowledge & accept the terms and conditions of Warehouse.

c) The Warehouse manager undertakes to store and delivery goods only in the packages inwhich they are originally received. If the packing of the commodity is not suitable forstorage purposes then Warehouse manager have every right to reject or refill the bagsand client will pay all refilling charges under extra service rendered by the Warehouse.

d) The Warehouse Receipt with the commodity grade will be issued after QualityCertification.

e) In case, the depositor wants Warehouse Receipt in electronic form, the depositor is

required to fill demat accounts related details as above.

****

cottonseed 16 mt

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