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Contract Specifications for Gold International (Applicable for contracts expiring in September 2011 and thereafter) Type of Contract Futures Contract Specifications Name of Commodity Gold Ticker symbol GOLDINTL Trading System NCDEX Trading System Ex-Ahmedabad exclusive of Customs Duty, Local Sales Basis Tax/VAT/Octroi and any other charges or levies. Unit of trading 1 kg Delivery unit 1 kg Quotation/base value Rs per 10 Grams of Gold with 995 fineness Tick size Re 1 Not more than 999.9 fineness bearing a serial number and identifying stamp of a refiner approved by the Exchange. Quality specification List of approved refiners is available at :www.ncdex.com\downloads\refiners_gold.pdf Quantity variation None Delivery center Ahmedabad As per directions of the Forward Markets Commission from Time to Time, currently: Mondays through Fridays – 10:00 AM to 11:30 PM / 11:55 PM * Saturdays – 10:00 AM to 02:00 PM Trading Hours Expiry Date – at 11:30 PM / 11:55 PM * All timings are as per Indian Standard Timings (IST) *during US day light saving period. The Exchange may change the above timing with due notice. The contract shall expire on the trading day prior to the last trading day of the contract expiry month. If one of the last Due date/Expiry date two trading days happens to be a Saturday, the contract shall expire one trading day earlier. The buyer and seller shall give intentions of taking/giving delivery through the delivery request window at least three trading days prior to the expiry of the contracts and such Delivery specification intentions can be given during 3 days which would be notified separately. This will be matched by exchange for physical delivery as per the process put in place by the Exchange. All open positions for which delivery intentions have not been received or for which delivery intentions have been Closing of contract rendered but remain unmatched for want of counterparty to settle delivery, will be cash settled at Final settlement Price on the expiry of the contract. The Final settlement price will be calculated on the expiry date based on International spot price at RBI reference rate. The detailed calculation is as illustrated below : 1. International spot price will be multiplied by 32.1507425 for calculating the equivalent of per Kg price from per ounce price. This is the price of 1 Kg of Gold in US$ of 999 purity. 2. The price arrived from step 1 is multiplied by Final Settlement Price (0.995/0.999) to get the gold price in US$ for 995 purity equivalent 3. Price arrived after step 2 will be multiplied by RBI reference rate on the day of expiry. This gives the price of 1 Kg Gold of 995 purity equivalent in INR. 4. The price arrived after step 3 is divided by 100 to get the Gold price for 10 Gms of 995 purity equivalent. 5. The price arrived after step 4 is rounded to nearest rupee Trading in a new contract will open on the 1st day of the Opening of contracts launch month. If the 1st happens to be a holiday, contracts would open on the succeeding trading day. No. of active contracts As per launch calendar Base daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed base daily price limit, the limit will be relaxed up to (+/-) 6% without any break/ cooling off period in the trade. In case the daily price limit of (+/-) 6% is also breached, then after a cooling off period of 15 minutes, the daily price limit will be further relaxed up to Price limit (+/-) 9%. Trade will be allowed during the cooling off period within the price band of (+/-) 6%. In case of price movement in International markets which is more than the maximum daily price limit (currently 9%), the same may be further relaxed in steps of 3% with the approval of FMC. Member wise : 12.50 MT or 15% of market wide open position whichever is higher – For all Gold contracts combined together. Client-wise: 2.50 MT – For all Gold contracts combined Position Limits together. 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. Please refer to Circular No. NCDEX/TRADING-100/2005/219 dated October 20, 2005. Gold bars of 999.9 / 995 fineness A premium will be given for fineness above 995. The Quality allowance settlement price for more than 995 fineness will be (for Delivery) calculated at (Actual fineness/995) * Final Settlement Price. Premium of 0.49% would be given for gold delivered of 999.9 purity. In case of additional volatility, a special margin at such other percentage, as deemed fit by the Regulator/Exchange, may be imposed on either the buy or Special Margin the sell side in respect of all outstanding positions. Removal of such Margins will be at the discretion of the Regulator/Exchange. In addition to the above margins the Regulator/Exchange may impose additional margins on both long and short side Additional Margin at such other percentage, as deemed fit. Removal of such Margins will be at the discretion of the Regulator/Exchange. Maximum Order Size 50 KG Contract Launch Calendar Contract Launch Month Contract Expiry Month 21/07/2011 29/09/2011 29/11/2011 30/01/2012 01/09/2011 29/03/2012 01/11/2011 30/05/2012 02/01/2012 30/07/2012 01/03/2012 27/09/2012 02/05/2012 29/11/2012 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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