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Click Here - Futures Contract Specifications for contracts expiring in November 2009 and thereafter ( Updated on 8 May 2009 )
Click Here - Contract Launch Calendar
Click Here - Contract Launch Calendar




Futures Contract Specifications. Updated as on 8 May 2009
( Contract specifications applicable to contracts expiring in November 2009 and thereafter )

Type of Contract Futures Contract Specifications
Name of Commodity Guar Gum
Ticker symbol GARGUMJDR
Trading System NCDEX Trading System
Basis Ex- warehouse Jodhpur, inclusive of Sales tax/VAT
Unit of trading 5 MT
Delivery unit 5 MT
Quotation/base value Rs. per Quintal
Tick size Re. 1
Quality specification
Residue insoluble in Acid 3.00% (Max)
Protein 5.00% (Max)
Undehusked Splits 10.00%
Black, dark red and brown coloured splits 1.00% (Max)
Through 14" mesh 3.00% (Max)
Through 20" mesh 0.10% (Basis)
Moisture 8%
Foreign Particles (all non gum particles) 0.30% (Basis)
Quantity variation +/- 2%
Delivery center Jodhpur (up to the radius of 50 Km from the municipal limits)
Additional delivery centres Bikaner, Nokha and Deesa (up to the radius of 50 Km from the municipal limits) with location wise premium/discount as announced by the Exchange from time to time.
Trading hours As per directions of the Forward Markets Commission from time to time, currently -

Mondays through Fridays - 10:00 a.m. to 05:00 p.m.
Saturdays - 10.00 a.m. to 2.00 p.m.

The Exchange may vary the above timing with due notice
Delivery Specification Upon expiry of the contract all outstanding positions will result in delivery

The penalty structure for failure to meet delivery obligations will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008.
Delivery logic Compulsory delivery
No. of active contracts As per launch calendar
Opening of Contracts Trading in any contract month will open on the 10th day of the month. If the 10th day happens to be a non-trading day, contracts would open on the next trading day
Closing of contract Upon the expiry of contract all outstanding open positions would result in compulsory delivery
Due date/Expiry date 20th day of the delivery month

If 20th happens to be a holiday; a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange.
Daily price limit Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a cooling off period for 15 minutes. Trade will be allowed during this cooling off period within the price band. Thereafter, the price band would be raised by (+/-) 1% and trade will be resumed.

If the price hits the revised price band (4%) again during the day, trade will only be allowed within the revised price band. No trade / order shall be permitted during the day beyond the revised limit of (+/-) 4%.
Position limits Member: 3000 MT or 15% of market open interest, whichever is higher.
Client: 1000 MT

The above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange will, on a case to case basis, decide the hedge limits

For near month contracts: The following limits would be applicable from one month prior to expiry of contract

Member: 600 MT or 15% of the market-wide near month open position, whichever is higher
Client: 200 MT
Quality Allowance The quality allowance in respect of Guar Gums is as follows:

Undehusked splits*

10% basis
acceptable upto 12% at a discount of 1:0.5
Above 12% rejected

Through 20% mesh

0.10% basis
acceptable upto 0.25% at a discount of 1:1
Above 0.25 % rejected

Moisture

8% basis
acceptable upto 10% at a discount of 1:1
Above 10.00% rejected

Foreign particles

0.30% basis
acceptable upto 0.50 % at a discount of 1:2
Above 0.50% rejected

*Total of 'Undehusked splits' and 'Black, dark red and brown coloured splits' not to exceed 12%
Special margins In case of additional volatility, a special margin at such other percentage, as deemed fit, will be imposed in respect of outstanding positions, which will remain in force as long as the volatility exists, after which the special margin may be relaxed.


Tolerance Limits for Outbound Deliveries for Guar gum
Specification Basis Deliverable Range Tolerance Limit
Undehusked splits 10.00% Basis Upto 12% +/-0.25%
Black, dark red and brown coloured splits 1.00% NA +/-0.1 %
coloured splits (Max)    
Through 14" mesh 3.00% (Max) NA +/-0.5 %
Through 20" mesh 0.10% (Basis) Upto 0.25 % +/-0.05 %
Foreign Particles (all non gum particles) 0.30% (Basis) Upto 0.5% +/-0.05 %
Upper limit on the total of all tolerances 0.75%



Contract Launch Calendar

Contract Launch Month Contract Expiry Month
August 2009 January 2010
August 2009 February 2010
September 2009 March 2010
October 2009 April 2010
November 2009 May 2010
December 2009 June 2010
January 2010 July 2010
February 2010 August 2010
March 2010 September 2010
April 2010 October 2010
May 2010 November 2010
June 2010 December 2010




Contract Launch Calendar of GuarGum :-

Contract Launch Month Contract Expiry Month
August 2010 January 2011, February 2011
September 2010 March 2011
October 2010 April 2011
November 2010 May 2011
December 2010 June 2011
January 2011 July 2011
February 2011 August 2011
March 2011 September 2011
April 2011 October 2011
May 2011 November 2011
June 2011 December 2011






Members and market participants who enter into buy and sell transactions may please note that they need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives, notifications of the Exchange as well as of the Regulators, Governments and other authorities.

Members and market participants trading on the Exchange in the commodity contracts shall be deemed to be aware of applicable laws and amendments thereof from time to time, including provisions and rates relating to the sales tax, value added tax APMC Tax, Mandi Tax, octroi, excise duty, stamp duty, etc., applicable on the underlying commodity of any contract offered for trading.

The Exchange shall not be responsible or liable on account of non compliance by any of the members and market participants of any such applicable laws or any amendments thereof including not being aware of rates of taxes, levies, etc., on the underlying commodity of any contract offered for trading.