Contract Specifications for Gold International Applicable for by liaoqinmei


									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
                         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

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

                         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
                          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
                          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

                          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
                          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

                            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
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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