BYE LAWS
PART A

1A DEFINITIONS
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  1. “Approved Laboratory” means a laboratory approved as such by the relevant authority for certifying the commodities as per specification prescribed in the Bye Laws, Rules and Regulations.

  2. “Board” means Board of Directors of National Commodity & Derivatives Exchange Limited.

  3. “Certified/Approved Warehouse” means a go-down or warehouse approved by the Exchange or any agency authorised by it and designated as such for making deliveries to and taking delivery of commodities.

  4. “Clearing and Settlement” means clearing or settlement or clearing and settlement of deals in respect of contracts or commodities in such manner and subject to such conditions as may be specified by the Relevant Authority from time to time, unless the context indicates otherwise.

  5. "Clearing Bank(s)” is such bank(s) as NCDEX may appoint to act as a funds settling agency, for the collection of margin money for all deals cleared through exchange and any other funds movement between clearing members and the Clearing House and between clearing members as may be directed by the Clearing House from time to time.

  6. “Clearing House” means a division of the Exchange or any agency identified by the relevant authority or any independent entity such as Clearing Corporation set up and empowered suitably to act as a facilitator for processing of deliveries and payments between clearing members /trading members and participants for trades effected by them on the exchange.

  7. “Clearing Member” means a member of the Clearing House of the Exchange engaged in providing Clearing facilities and includes all categories of clearing members as may be admitted as such by the Clearing House. The terms Clearing Member shall include ‘Trading Member’ when Trading Member is performing the function of Clearing Member in accordance with the Rules, Bye laws and regulations of the Exchange. The term ‘Clearing Member’ includes Professional Clearing Members admitted by the Exchange under Rules and shall such rights as prescribed in the Rules of Exchange and by relevant authority from time to time.

  8. “Client/Constituent” means a person, on whose instructions and on whose account the Trading Member enters into a deal on the Exchange or Clearing Member clears and settles deals. For this purpose the term “Client” shall include all registered constituents of Trading Members and Clearing Members of NCDEX.

  9. “Closing Buy Transaction” means a buy transaction, which will have the effect of partly or fully offsetting a short position.

  10. “Closing Sell Transaction” means a sell transaction, which will have the effect of partly or fully offsetting long position.

  11. “Collateral” means money, fixed deposit receipt, bank guarantee, securities or any other transactions as specified by the exchange, offered as security deposit, margin deposit or as such security for any other transaction as required by the exchange.

  12. “Commodities” shall have the meaning assigned to “goods” in the Forward Contracts (Regulation) Act, 1952.

  13. ”Contract” means a ready delivery contract, forward contract, futures contract or any derivatives contract relating to buying and selling commodities admitted to dealing by the exchange.

  14. “Deal” means, unless the context indicates otherwise, a trade, contract, transaction or a deal which is admitted for trading and cleared and settled, through the Clearing House of the exchange or as prescribed by the exchange.

  15. “Delivering Member” means a clearing member who has to or has delivered commodities or documents of title or other relevant documents for commodities in fulfilment of contract to which these Bye Laws, Rules and Regulations apply unless the context indicates otherwise.

  16. “Delivery month” means the month in which a contract is required to be finally settled as prescribed by the relevant authority from time to time.

  17. “Delivery Period” means the period during which the delivering member notifies his intent to deliver and or deliver commodities for physical settlement as per the procedures prescribed by the exchange.

  18. “Exchange” means the multi-commodity exchange operated by NCDEX.

  19. “Expiration Day” is the day on which the final settlement obligation is determined in the contract or deal.

  20. "FMC" means the Forward Markets Commission of India constituted by the Central Government under section 3 of the Forward Contracts (Regulation) Act, 1952.

  21. “Futures Contract” means a legally binding agreement to buy or sell the underlying asset in the future.

  22. “Godown/Warehouse” means any structure/facility meant for storing and preserving the commodities approved in this behalf by the relevant authority from time to time.

  23. “Last Trading Day” means the day upto and on which a deal or contract is available for trading.

  24. “Long Position” in a contract means outstanding purchase obligations in respect of a permitted contract or commodity at any point of time.

  25. "Market-Maker" means a trading member registered under the Bye Laws of NCDEX.

  26. “Open Position” means the sum of the long and short positions of the member and his constituent in any or all of the contracts or commodities outstanding with the Clearing House.

  27. "NCDEX" means the National Commodity & Derivatives Exchange Limited.

  28. “Official List” means the list including the contracts or commodities admitted or permitted for trading on the exchange.

  29. “Opening Buy Transaction” means a buy transaction which will have the effect of creating or increasing a long position.

  30. “Opening Sell Transaction” means a sell transaction, which will have the effect of creating or increasing a short position.

  31. “Open Interest” means the total number of contracts or deals of an underlying commodity that have not been offset and closed by an opposite transaction nor fulfilled by delivery of the cash or underlying commodity.

  32. "Regulations", unless the context indicates otherwise, includes business rules, code of conduct and such other regulations prescribed by the relevant authority from time to time for the operations of the Exchange and these shall be subject to the provisions of the Forward Contracts (Regulation) Act, 1952 and the directives of Forward Market Commission and such other directives and provisions of relevant authority as may be specified from time to time.

  33. "Relevant Authority" means the Board or such other authority as specified by the Board from time to time as relevant for a specified purpose.

  34. "Rules", unless the context indicates otherwise, means rules as intimated for regulating the activities and responsibilities of trading members and clearing members of NCDEX and as prescribed by the relevant authority from time to time for the constitutions, organisation and functioning of the Exchange and these rules shall be subject to the provisions of the Forward Contracts (Regulation) Act, 1952, Rules and directives of FMC and relevant authority.

  35. “Settlement Date” means the date on which the settlement of outstanding obligations in permitted contracts and deals are required to be settled as provided in the Bye laws, Rules and Regulations.

  36. “Short Position” in a contract or deal means outstanding sell obligation in respect of permitted contracts or commodities at any point of time.

  37. “Settlement Fund” means a fund established and maintained in accordance with the relevant provisions of the Bye Laws.

  38. “Trading Cycle” means the period as notified by the exchange from time to time, during which the contracts and deals will be available for trading.

  39. "Trading Member" means a broker and the member of the NCDEX registered in accordance with the Bye Laws of NCDEX but does not denote the shareholder of the Exchange or the Clearing House of the Exchange or the Clearing Corporation.

  40. "Trading Segments" or "Segments" mean the different segments or divisions of NCDEX as may be classified and specified by the Board or relevant authority from time to time.

  41. “Trading system of the NCDEX” means a system which carries out trade matching and allied functions and makes available to trading members and the investing public, by whatever method, quotations in NCDEX contracts or commodities and disseminates information regarding trades effected, volumes or any other relevant matter, etc. and such other notifications as may be placed thereon by the relevant authority.

  42. “Receiving Member” means a clearing member who has to receive or has received documents of title or other relevant documents in fulfilment of contracts to which these Rules, Bye Laws and Regulations apply unless the context indicates otherwise.

  43. “Warehouse Receipts” means a document issued by a certified warehouse in the manner and form stipulated by the Exchange or relevant authority from time to time shall be deemed to be proof as to the availability of the deliverable commodities for apportionment as per the delivery orders released by the Clearing House of the Exchange and shall include warehouse receipts in electronic form as may be prescribed by Relevant Authority.
 
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