Annexure 1

Contract Specifications of Rubber

Symbol RUBBER
Description RUBBERMMMYY
Contracts available for trading
July contract 16 th March to 15 th July of the contract year
August contract 16 th April to 14 th August of the contract year
September contract 16 th May to 15 th September of the contract year
October contract 16 th June to 15th October of the contract year
November contract 16 th July to 15 th November of the contract year
December contract 16 th August to 15 th December of the contract ye ar
Trading
Trading period Mondays through Saturdays
Trading session Monday to Friday: 10.00 am to 5.00 pm
Saturday: 10.00 am to 2.00 pm
Trading unit 1 MT
Quotation / Base Value 100 kg
Price Quote Ex- Kochi (excluding all taxes, sales tax or VAT as
the case may be and levies)
Maximum order size 50 MT
Tick size (minimum price Re. 1
movement)
Daily price limits The base price limit will be 3%. Whenever the base
daily price limit is breached, the relaxation will be
allowed up to 4% with a cooling off period of 15
minutes
Initial margin 5%
Special Margin In case of additional volatility, a special margin at
such percentage, as deemed fit, will be imposed
on both buy and sale side in respect of all
outstanding positions, which will remain in force till
volatility persists, after which the special margin
will be relaxed.
Maximum Allowable Open For individual clients: 4000 MT
Position For a member collectively for all clients: 12000 MT
or 15% of the market-wide open position, whichever
is higher.
 Near Month Limits
For individual clients: 1250 MT
For a member collectively for all clients: 5000 MT

or 15% of the market-wide open position,

whichever is higher
Delivery
Delivery unit 1 MT
Delivery margin 20% of the net outstanding position.
Delivery center(s) Designated warehouses of Central Warehousing
Corporation (CWC) and other approved warehouses
at Cochin
Additional Delivery Center Calicut, Trichur, Kottayam, Manjeri, Palghat,
(s) Thodupuzha, Pala, Moovatupuzha, Chalakudy, Iritty
and Mangalore
Quality certification Ribbed Smoked Sheets 4 (RSS4). The seller must
obtain quality certificate from Exchange empanelled
quality ce rtification agency before tendering
delivery.
Quality specifications as provided under Part II Section 1 of the Green Book
including the following specifications which are also a part of the Green Book:
a) Rubber must be dry, firm, and free of blemishes, bli sters, sand, dirty packing
and all other foreign matter other than specified above as permissible.
b) Medium size bark particles, bubbles, translucent stains, slightly over smoked
rubber are permissible to the extent shown in the sample.
c) O xidised spots or streaks, weak, heated, under cured, over smoked (in
excess of the degree shown in the sample), and burnt sheets are not
permissible.
d) Slight resinous matter (rust) and slight amounts of dry mould on wrappers
bale surfaces and interior sheets, found at time of delivery will not be
objected to.
e) Should ‘rust or dry mould’ in an appreciable extent appear on more than 20%
of the bales sampled, it shall constitute grounds for objection.
f) Nothing but coagulated Rubber sheets, properly dried and smoked can be
used in making these grades: block, cuttings or other scrap or frothy sheets,
weak, heated or burnt sheets, air dried or smooth sheets not permissible.
Delivery Logic Compulsory
 Annexure 2
Delivery and Settlement Procedure of Rubber Contract

Delivery logic Compulsory delivery

Tender period Last five working days of the contract expiry and 1st working
day after expiry of the contract.
Delivery Period Two working days after expiry of the contract
Tender notice / The seller may issue tender notice on tender days along with
Delivery Pay-in warehouse receipt (duly endorsed & signed by the depositor &
the Member) and quality certificate issued by quality certifying
agency

Any outstanding positions will be marked for delivery at the

expiry of the contract.
Mode of Fax / Courier
communication
Delivery Period 25 % on the marked quantity
Margin
Tender Period During last 5 days of the contract, tender period margin will be
Margin increased by 3% every day (a total of 15% margin on last
day). Such margin will be imposed on both buy & sell open
positions and will be in addition to the initial/daily margin,
special and / or any other additional margins, if any.
Exemption from Tender and Delivery Period Margin exempted if goods
Tender and tendered on designated tender days of the contract month
Delivery Period with all the documentary evidence
Margin
Delivery Allocation
- Date On contract expiry date
- Rate At Due Date Rate (DDR)
Early Delivery As per Circular MCX/C&S/037/2009 dated January 21, 2009.
Period
Delivery Pay-in E+1 working days by 5.00 p.m. (E – Expiry date)
Delivery Pay-out E+2 working days by 5.00 p.m.
Pay-in of funds E+2 working days by 11.00 a.m
Pay-out of funds E+2 working days after 2.00 p.m.
Penal Provision I – Seller Default
Any seller having open position on the expiry date fails to
deliver on the next day then a penalty of 3% of DDR shall be
imposed on such defaulting seller.
Out of which 1.75% will be deposited to IPF, 1% of penalty will
be given to the buyer & balance 0.25% will be retained by the
Exchange.
Additionally, the difference between the DDR & the average of
the three highest last spot prices of the five succeeding days
after the Expiry of the contract (E+1 to E+5 days) if the
average price so determined is higher than DDR.
II – Buyer Default
The buyer will have to compulsorily take the delivery of goods.
Default on taking delivery by the buyer is not permitted and
therefore, the amount due from the buyer for delivery
obligation shall be recovered from the buyer as pay-in of funds
on stipulated pay-in day. Failure to discharge the pay-in
amount will be treated as pay-in default which may lead to
deactivation of the trading terminal/s of the member and will
also be liable for such other actions as Exchange deems
appropriate.
Exchange, as deemed appropriate, shall have the right to
sell/dispose the goods through auction (or through other
appropriate mechanism as and when required) on account of
such defaulting buyer to recover the dues.
Penalties & charges to be debited to defaulting Buyer:
S. Where Where Auction Where no
No Auction is is partly Auction
fully conducted is conducted
conducted
1 Penalty @ 3% Penalty @ 3% Penalty @ 3%
on DDR on DDR on DDR
AND AND AND
2 Difference Difference NA
between DDR between DDR &
& Auction price Auction price if
if Auction price Auction price is
is lower than lower than DDR
DDR to the tune of
auctioned
(including quantity
proportionate
quality and (including
quantity proportionate
differences) quality and
quantity
differences)
AND AND AND
3 NA Difference Difference
between DDR between DDR
and the and the
average of the average of the
three lowest three lowest
last spot prices last spot prices
of the five of the five
succeeding succeeding
days after the days after the
Expiry of the Expiry of the
contract ( E+1 contract ( E+1
to E+5 days ) if to E+5 days ) if
 the average the average
price so price so
determined is determined is
lower than lower than
DDR. DDR.
Out of penalty of 3%, 1.75% will be deposited to IPF, 1% of
penalty will be given to the seller & balance 0.25% will be
retained by the Exchange.
Whereas, out of the close out amount for un -auctioned
quantity as mentioned above, 90% will be credited to the
counter party and 10% of the same will be retained by the
Exchange towards administrative expenses.
Taxes, Duties, Cess The buyer pays the Sales Tax/VAT and all the other taxes and
and Levies levies as applicable. In case of Inter-State movement, the
buyer has to submit requisite form(s) or pay CST as
applicable. Post lifting delivery all charges are borne by the
buyer.
Due Date Rate Exchange shall take spot prices from a panel of different
entities from spot market and shall compute the daily average
price. Due Date Rate is calculated on the a l st day of the
contract maturity by way of taking the simple average of last 3
days spot price.
Odd lot treatment Not Applicable
Adjustment of Transport Discount in Rubber Contract
transport cost Delivery Centre Discount
COCHIN BASIS CENTRE
Addl. Centres:

CALICUT
IRITTY 50 paise per kg discount

TRICHUR
KOTTAYAM
THODUPUZHA
MUVATTUPUZHA
CHALAKUDY
PALA 20 paise per kg discount

PALGHAT
MANJERI 40 paise per kg discount

MANGALORE Re.1 per kg discount

Warehouse, -Borne by the seller upto commodity pay-out date
fumigation, -Borne by the buyer after commodity pay-out date
insurance and
transportation
charges
Buyer’s option for Buyer will not have any option about choosing the place of
lifting of delivery delivery and will have to accept the delivery as per allocation
made by the Exchange.
Delivery centre Kochi (Cochin)
Additional delivery Calicut, Trichur, Kottayam, Manjeri, Palghat, Thodupuzha,
center(s) Pala, Moovatupuzha, Chalakudy, Iritty and Mangalore
Delivery o rder Good delivery order will be submitted in specified format
giving details of Members / Registered non-members who
shall perform delivery.

Each delivery order issued shall be in multiples of minimum

delivery lots and shall be designated for only one delivery
center and one location in such center.

It will be accompanied with warehouse receipt, invoice and

Good Delivery Quality Certificate valid at least for 10 days
after the expiry of the contract, as per contract specifications
from Exchange designated certifier, Delivery order once
submitted cannot be withdrawn or cancelled or changed
unless so agreed by Exchange in writing. Members tendering
the delivery order shall clearly specify the grade and shall be
in conformity with the surveyor’s certificate accompanied with
the delivery document and cannot be changed subsequently.

Evidence of stock At the time of issuing the delivery order, the member must
in possession prove to the Exchange that he holds stocks of the quantity and
quality specified in the delivery order at the declared delivery
center. This should be substantiated by way of producing
warehouse receipt
Endorsement of The buyer member can endorse delivery order to a client or
Delivery order any third party with full disclosure given to the Exchange.
Responsibility for contractual liability would be with the original
assignee.
Sampling and In case the buyer does not agree to the Surveyor's report as to
analysis at the time the quality of the commodity, he shall desire for second
of delivery sampling and intimate the Exchange in writing within 48 hours
of the pay-out date.
Sampling The system of drawing of samples tendered for delivery will be
procedure as prescribed in the Bureau of Indian Standards procedure.
Three Samples shall be drawn as under:

• First Sample – for the buyer

• Second Sample – for the seller
• Third Sample – for final reference, if necessary

If the first sample collected by the buyer and analyzed by the

surveyor appointed by him, conforms to the specifications,
then the goods tendered for delivery shall be accepted and no
subsequent claims from the buyer regarding quantum of
rebate or any other indemnification shall be admissible nor
sellers shall be obliged to pass any sealed samples to the
buyer if requested subsequently. The sampling methods to be
adopted for analysis will be decided by the Exchange.
Failing of first If the first sample as examined by the buyer's surveyor fails to
sample conform to the quality standards specified, the buyer shall
intimate the seller within 72 hours of collection of sealed
sample along with a copy of the analyst's report. The seller
shall immediately send the second sealed sample to an
approved laboratory, which is also agreed by the buyer. The
result of the same shall be binding on both the parties. In the
event the buyer and seller do not mutually reach agreement
with the results of the second sample test, then the Exchange
shall send the third sealed sample to any one of the approved
laboratories / surveyor, as decided by the Exchange.
Final Surveyor’s The analyst's report of the approved and agreed independent
report laboratory shall be forwarded by the Exchange to the parties
immediately on receipt of the same. In such case, the final
payment to the seller will be made on the basis of test report
received by the Exchange pursuant to the third test. The
Exchange will also direct the party, in whose favour the result
is declared to collect the cost of tests and detention charges
from the other party. In case the commodity stands rejected
then it will tantamount to failure on the part of the seller to give
delivery, which shall be closed out as per the Due Date Rate
treating the same as shortage.
Obligations of the In order to ensure that tests are exactly comparable and that
independent the results are consistent, the independent analyst shall
analyst determine the particular analytical test by applying the
methods specified in relevant IS. The analyst shall be required
to append a certificate to that effect to the analysis report
issued by him.
Legal obligation The member will provide appropriate tax forms wherever
required as per law and as customary and neither of the
parties will unreasonably refuse to do so.
Extension of As per the Exchange decision due to a force majeure or
Delivery Period otherwise.
Applicability of The general provisions of Byelaws, Rules and Business Rules
Byelaws, Rules, of the Exchange and decisions taken by Forward Markets
Business Rules of Commission, Board of Directors and Executive Committee of
the Exchange. the Exchange in respect of matters specified above will form
and integral part of this contract. The Exchange or FMC as the
case may be further prescribe additional measures relating to
delivery procedures, warehousing, quality certification,
margining, risk management from time to time. The buyer shall
have to lodge their claim against quality of goods / delivery
allocated to them, if any, within 48 hours from the date of
scheduled pay out of the Exchange and failing which, no claim
shall be entertained by the Exchange thereafter. (The
interpretation or clarification given by the Exchange on any
terms of this contract shall be final and binding on the
members and others.)