- “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.
- “Board” means Board of Directors of National Commodity
& Derivatives Exchange Limited.
- “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.
- “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
- "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.
- “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.
- “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.
- “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.
- “Closing Buy Transaction” means a buy transaction, which
will have the effect of partly or fully offsetting a short position.
- “Closing Sell Transaction” means a sell transaction, which
will have the effect of partly or fully offsetting long position.
- “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.
- “Commodities” shall have the meaning assigned to “goods”
in the Forward Contracts (Regulation) Act, 1952.
- ”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.
- “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.
- “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.
- “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.
- “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.
- “Exchange” means the multi-commodity exchange operated
- “Expiration Day” is the day on which the final settlement
obligation is determined in the contract or deal.
- "FMC" means the Forward Markets Commission of India constituted
by the Central Government under section 3 of the Forward Contracts (Regulation)
- “Futures Contract” means a legally binding agreement to
buy or sell the underlying asset in the future.
- “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.
- “Last Trading Day” means the day upto and on which a deal
or contract is available for trading.
- “Long Position” in a contract means outstanding purchase
obligations in respect of a permitted contract or commodity at any point
- "Market-Maker" means a trading member registered under the
Bye Laws of NCDEX.
- “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.
- "NCDEX" means the National Commodity & Derivatives Exchange
- “Official List” means the list including the contracts
or commodities admitted or permitted for trading on the exchange.
- “Opening Buy Transaction” means a buy transaction which
will have the effect of creating or increasing a long position.
- “Opening Sell Transaction” means a sell transaction, which
will have the effect of creating or increasing a short position.
- “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
- "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.
- "Relevant Authority" means the Board or such other authority
as specified by the Board from time to time as relevant for a specified
- "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.
- “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.
- “Short Position” in a contract or deal means outstanding
sell obligation in respect of permitted contracts or commodities at
any point of time.
- “Settlement Fund” means a fund established and maintained
in accordance with the relevant provisions of the Bye Laws.
- “Trading Cycle” means the period as notified by the exchange
from time to time, during which the contracts and deals will be available
- "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.
- "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.
- “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.
- “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.
- “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