Indian Pusa Basmati Rice
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Indian Pusa
Basmati Rice
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 Contract specifications
of Indian Pusa Basmati Rice futures contracts (Please refer to notes, if any,
listed below this contract specifications)
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Type Of Contract
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Futures Contract
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Name of commodity
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Indian Pusa Basmati Rice futures contract
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Ticker symbol
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RICPUSADEL
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Trading system
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NCDEX Trading System
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Basis
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Ex-warehouse Delhi exclusive of all
taxes
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Unit of trading
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10 MT
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Delivery unit
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10 MT net basis packed in 50 Kgs. new jute
bags
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Quotation/ Base value
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Rs per quintal
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Tick size
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Re. 1/-
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Quality specification
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Indian Pusa Basmati Rice with the following
specifications:
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Parameter
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Average
pre cook length in mm
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7 mm Min
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Length to
Breadth (L/B) Ratio
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3.5 Min
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Moisture
content
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14% Max
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Damaged
discolored grain
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0.7% Max
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Chalky
grain / black kernel
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5% Max
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Broken
& Fragments
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3% Max
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Foreign
Matter
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0.25% Max
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Other
grain
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0.1% Max
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Other rice
varieties
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8% Max
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Under
milled & red stripped grains
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2.5% Max
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Paddy
grains
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0.2% Max
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Elongation
ratio
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1.7
Min
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Quantity variation
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+/- 5 %
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Delivery center
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Delhi (up to 50 km from city limits)
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Trading hours
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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
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Delivery specification
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Upon expiry of the contracts, all
outstanding position will result in delivery. A penalty of minimum 5% (of
final settlement price) should be imposed on longs & shorts if they
fail to meet their delivery obligation
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Delivery logic
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Compulsory delivery
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No. of active contracts
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As per Annexure I
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Opening of contracts
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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
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Due date/Expiry date
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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
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Closing of contract
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On the expiry of the contract, all the outstanding
position shall be settled by physical delivery
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Daily price limit
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Daily price fluctuation limit is (+/-) 4%.
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
another 50% of the existing limit i.e. (+/-) 2% and trade will be resumed.
If the price hits the revised price band (6%) 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 (+/-) 6%..
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Position limits
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Member: 3,000 MT or 15% of market wide open position
whichever is higher for all contracts.
Client: 1000 MT for all contracts.
For near month contracts:
Member: 600 MT
Client: 200 MT
The above limit will not apply to bona fide hedgers. For bonafide hedgers
Exchange will decide on case to case basis.
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Special margins
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Special margin of 4 % of the value of the contract will
be levied whenever the rise or fall in price exceeds 20% of the 90-day
prior settlement price. The margin will be payable by buyer or seller
depending on whether price rises or falls respectively. The margin shall
stay in force so long as price stays beyond the 20% limit and will be
withdrawn as soon as the price is within the 20% band
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Premium/Discount
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No quality variation shall be allowed
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Annexure I
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Launch Calendar of futures contract in Indian Traditional
Basmati Rice
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Month
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Contract
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August
2006
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September
2006 and December 2006
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Note: Contracts expiring in October 2006 and
November 2006 would not be available for trading
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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.
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