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Asset Code
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KAPAS
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Product Code
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KAPASF
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Series Code
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KPSMMMYYYY
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Trading System
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NMCE’s Derivatives Trading and Settlement System
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Trading Hours
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Monday to Friday:10:00 am to 5:00 pm
Saturday:10:00 am to 2:00 pm
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Unit of Trading
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4000 Kg
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Delivery Unit
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4000 Kg
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Quotation/Base Value
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Rs. 20Kg./-
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Tick Size
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10 Paisa
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Price Band
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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
shall be raised by (+/-) 1.0 % and trade will be resumed. No trade/order shall be
permitted during the day beyond the revised limit of (+/-) 4.0 %.
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Quality Specification
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KALYAN KAPAS: V-797
Fair Average Quality of current year crop
Moisture: 2.5 % Maximum
Out Turn: 40 % Cotton lint & 60 % Cotton Seed
Variation of +/ - 2 % acceptable at par
Quantity Variation:1.25 %
Produce should be of area of approved delivery centers
Kapas may be machine or manually decorticated
Trash Content: Allowable upto 1.25% max beyond which discount in the ratio of 1:1
will be applicable
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No. of delivery Contracts in a year
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1 contract in a year (May month)
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Delivery Logic
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Seller’s option
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Delivery Allocation
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Tendered quantity shall be allocatred to all the counter parties in proportion to
their positions held on the day of allocation
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Delivery Centers
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Surendranagar (Basis) and also all the Taluka Centers & 163 villages of Surendranagar
District: Ex Seller’ ginning / pressing compound / godowns or open shed storage
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Additional Delivery Centers
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Any center within 50 Km from Surendranagar without any freight appropriation. For
further slab refer the foot note*
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Opening of Contracts
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Trading in contract month will open soon after receipt of the permission
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Due Date
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15th of the contract month, if 15th happens to be holiday then previous trading
day.
All the unmatched positions shall be settled on due date at an average spot price
of Bales/ Cotton seed of last 5 days to be polled from Surendranagar, Hariz, Viramgam,
Kadi, Lakhtar & Limdi centers
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Closing of Contract
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During the delivery period From 15th March to 14th May; on receipt of intention
from the seller for delivery, the Exchange clearing house will allocate the same
to all the buyers in proportion to their positions held on the day of the allocation
at a close price of the previous day, since mark to market (MTM) up to a price of
previous day could be settled through daily clearing, on such matching (allocations).
Such matched position shall be settled on (T) +8 days basis for fund pay-in, and
pay-out to the seller shall be made after receipt of the joint confirmation from
both buyer and seller having completed delivery process. Buyer has to make funds
available within 2 days from date of allocation and arrange lifting of the material
within 8 days and additional grace period of 2 days from the date of allocations,
failing which a penalty of Rs 500/- per truck per day becomes payable by the buyer
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Limit on open position
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Aggregate Limit
Client – Maximum of 25,000 MT for all contracts
Member – 75,000 MT or 15% of market open position whichever is higher
Near Month Limit:
Client-5,000 MT
Member – 15,000 MT or 15% of the total near month position in the commodity, whichever
is higher
The above limits will not apply to bonafide hedgers
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Floor Price Ceiling
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Rs 120/ above or below of the base price. The base price shall be derived by averaging
the traded price of first three days after launch of the contract, which shall be
notified to the trade on the fourth trading day
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Initial Margin
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5.0 %
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