9/19/2014

www.mcxindia.com

REGULATORY FRAMEWORK
MINISTRY OF FINANCE

FORWARD MARKET COMMISSION (FMC)

MULTI COMMODITY
EXCHANGE OF
INDIA LTD(MCX)

NCDEX

ACE

UCX

NMCE

www.mcxindia.com

Exchange Dynamics

MCX commenced operations on November 10, 2003

Fully electronic commodity futures exchange with scalable technology

framework and Disaster Recovery Site (DRS) for end-to-end functioning of
systems and network

Largest and only listed commodity exchange in India

84.89% market share in terms of the value of commodities traded in the
futures market during FY2014
Average daily turnover in FY2014: INR 278 billion
Highest daily turnover of INR 1,199.41 billion achieved on April 15, 2013
Extensive reach: 2000+ members, operations through 467,000 terminals
including CTCL across over 1900 cities and towns across India

Competitive edge: Leadership team, extensive experience in financial services

industry step ahead in innovation & product mix, multiple domestic and
international alliances, scalable technology platform and robust business model

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S T R O N G I N D U S T RY F U N D A M E N TA L S
KEY POINTS

MAJOR COMMODITIES TURNOVER IN INDIA FOR FY13-14

17 commodity exchanges recognised by FMC in India

11%

Six are national multi-commodity exchanges

Other s11 are regional or localised exchanges spread across India

2%
2%
2%
3%

Currently about 50 commodity futures are approved by FMC for trading

Six electronic national level multi-commodity exchanges recognised by

the Government of India are MCX, NCDEX, NMCE, ICEX, ACE & UCX

4%

The national exchanges accounted for 99.72% of the turnover of

commodity futures contracts traded in India during FY13-14

7%

Growth of the commodity industry in India will depend on favourable

policy framework (i.e. roll-back of CTT), amendment of regulatory
statutes, economic growth, increase in investor participation,
technological advancements and introduction of new commodity
classes

GROWTH OF INDIAN COMMODITIES MARKET IN TERMS OF

VALUE OF FUTURES TRADED (INR TN)

25%

8%
18%
18%

Gold
Crude Oil
Silver
Copper
Natural Gas
Lead
Refined Soy Oil
Zinc
Soyabean
Nickel
Others

MCX: MARKET SHARE IN KEY SEGMENTS FOR FY13-14

200
150
100

181

170

119

50
41

52

FY 2008

FY 2009

101

78

FY 2010

FY 2011 FY 2012

FY 2013

FY 2014

Commodity

MCX Market
Share

Proportion of
MCXs
FY 13-14
turnover

Gold

98.8%

28.8%

Crude Oil

99.4%

20.8%

Silver

99.2%

20.7%

Copper

98.9%

9.0%

Natural Gas

98.3%

7.6%
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Overview
AVERAGE DAILY VOLUME (INR BN)

IMPORTANT INITIATIVES

1st commodity futures exchange to offer mini contracts in India

1st commodity futures exchange in India to develop real-time
composite commodity futures index* such as MCXCOMDEX,
MCXAGRI, MCXENERGY and MCXMETAL
1st commodity futures exchange in India to report its sustainability
performance since FY 2009-10

600

503
321

400

UCX, 0.7%

Others,
0.3%

ACE, 0.5%

200
0

ICEX, 0.8%
NMCE, 1.5%
NCDEX,
11.3%

FY 11

FY 12

FY 13

FY 14

VOLUME OF CONTRACTS (Lots in MN)

500

390

400

MCX, 84.9%

278

210

FY 10
MCX MARKET SHARE IN FY 13-14

488

300
200

164

213

FY 10

FY 11

375

214

100
0
FY 12

FY13

FY14

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E X P E R I E N C E D B O A R D O F D I R E C TO R S

SATYANANDA MISHRA, IAS (Retd.)

Chairman, Independent Director, FMC Approved
Ex-Chief Information Commissioner
Handled various assignments in different
capacities viz. Secretary, Department of
Personnel & Training, Establishment Officer,
Principal Secretary, Public Works Department,
etc.

SANTOSH KUMAR MOHANTY

Independent Director, FMC Nominated

RAVI KAMAL BHARGAVA, IAS (Retd.)

DINESH KUMAR MEHROTRA

Independent Director, FMC Nominated

Independent Director, FMC Nominated

Former Secretary General, National Human

Rights Commission
Former Additional Secretary, Dept. of Justice,
Ministry of Home Affairs
Former Additional Secretary, Ministry of Mines,
Government of India, etc.

Former Chairman, LIC

Over 36 years of management
experience in LIC
Previously held position of Convenor &
Member Secretary of Expert Group
Committee formed by the Ministry of
Finance, Government of India

S.N. ANANTHASUBRAMANIAN Independent

Director, FMC Nominated

G. ANANTHARAMAN, IRS (Retd.)

Fellow Member of Institute of Company

Secretaries of India(ICSI) and presently the
President of the Council of ICSI.
More than two decades of practice in
diversified areas including consultation in
corporate/securities laws, Due Diligence
Reports, etc.
Strong votary of good governance practices

Independent Director, FMC Approved

K N REGHUNATHAN

P. PARAMASIVAM

P. SATISH

Shareholder Director, Union Bank of India

Shareholder Director, Corporation Bank

Shareholder Director, NABARD

Presently, General Manager -Treasury,

Union Bank of India
Over 35 years of work experience with
Union Bank of India in various capacities
Member of the Advisory Committee of
MCX-SX, IDFC Investment Fund, TATA
Growth Fund & TATA Innovative Fund

Presently, General Manager, Corporation Bank

About 28 years of work experience with
Corporation Bank in various capacities

Chief General Manager and Secretary,

NABARD
Previously worked with RBI
Responsibilities relate to micro finance,
financial inclusion and rural
infrastructure financing

M.A.K. PRABHU

B.V. CHAUBAL

Shareholder Director, Canara Bank

Shareholder Director, State Bank of India

Presently, General Manager (Integrated

Treasury Wing) , Canara Bank
Working with Canara Bank since 2001 in
various senior capacities.

Presently, Deputy Managing Director and

Group Executive, State Bank of India
Working with State Bank India since 1976 in
various capacities

Officer in the Indian Revenue Services

Director of Forward Markets Commission
FMC)
Held various positions in the Income Tax
Department
Over 28 years of experience

Presently, Special Advisor to the Chairman,

Tata Realty & Infrastructure Limited
Former Chief Commissioner of Income Tax,
Mumbai

Former whole time member of SEBI

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www.mcxindia.com

HAVE YOU BALANCED YOUR PORTFOLIO?????

Equity
Fixed Income
Investments
Commodities
Real Estate
Paintings

FD

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Portfolio Analysis

Portfolio Distribution

Criteria

Nifty

Without
Commodity

100%

2
3
4

With
Commodity

Parameters

Annualized
Bond Gold Silver Returns (%)

80%

20%

40%

20%

40%

30%

20%

30%

20%

Annualized Sharpe
Volatility (%) Ratio (%)

20.1%

21.9%

57%

17.5%

17.5%

57%

17.6%

14.0%

73%

18.5%

15.8%

69%

Period Considered: Jan 2009 Dec 2013

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Global asset returns

SOURCE: BLOOMBERG
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Commodities as an Asset Class

Commodities are an unique asset class that can provide valuable
diversification benefits to an investment portfolio.
Used in combination with traditional assets like stocks and bonds, they
can potentially reduce overall portfolio long-term risk while increasing
upside potential.
The historically low correlation between commodities and financial assets
means that commodities may perform well in neutral or negative years for
stocks or bonds.
Hedge against Inflation
Global Underlying Broadly difficult to manipulate
Extremely High Leverage Instrument Due to low margins (4-5%)
Pure Play Demand/Supply/Inventory/Trading Pattern driven
Hedge against a Currency Fluctuation.
9/19/2014

11

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COMMODITY DEMOGRAPHICS (GLOBAL IN NATURE)

China
1. Growth rate

Euro zone
1. Inflation

2. Consumption pattern (domestic

& global)

2.Growth rate

3.Stock positions

3. Easing

United States
1. Dollar
2. Monetary Policy

India still a
price taker!!!

3.Inflation

4.Fed easing

OPEC & oil producing

economies
1. Stock & supply policy
2. Geopolitical sceanrio

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Trading strategies Clients can be scientific in

approach Economic Data Releases:

Employment data First Friday of month

GDP Last Friday of the month

ISM Mfg. Index First working day of month

Trade Deficit Third week of month

Consumer price index- Third week

Production price index Third week

Industrial production Third week

Retail sale Third week

Durable goods order Last week

Federal bank meeting (8 times in a year)

Base metals inventory every day

Crude inventory Wednesday

Natural gas inventory - Thursday

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WHERE CAN YOU FIND DATA ?

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Global Events & Effects on Commodity Prices

2011:European
Crisis

2013:Probable Dollar
Crunch

2014- QE
Tapering

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Current Global Environment

US decides to taper its bond buying package by Oct,14 & tightening

its monetary policy

Chinas uncertain and uneven growth trajectory questioning
recovery.
Europe the volcano that took birth 3 years back has now started to

settle peacefully with small tremors here and there.

Stimulus packages are working as steroids with short lived impact

and increasing ineffectiveness.

BRICS struggling to remain resilient.

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Impact of International Price Movement

Add

Particulars

Particulars

Gold

Gold

Spot

1311.00

CIF in dollars

3.00

Add

Spot

1312.00

CIF in dollars

3.00

1314.00
Multiply

Multiply

32.15

1315.00
Multiply

32.15

Dollars per kg

42245.10

Dollars per kg

42277.25

995 prices

42038.08

995 prices

42070.07

Currency Rate

60.06

Currency Rate

60.06

Multiply

Add

Add

Rs per kg

2524806.98

Customs duty(8%)

252480.70

Cess (3%)

.
Rs per kg

2526728.45

Customs duty(8%)

252672.84

7574.42

Cess (3%)

7580.19

Landed Cost per kg

2784862.10

Landed Cost per kg

2786981.48

Bank Cost(0.10%)

2784.86

Bank Cost(0.10%)

2786.98

Final wholesale Price per kg

2787646.96

Final wholesale Price per kg

2789768.46

Final Price per 10 gms

27876

Final Price per 10 gms

27898

Add

Add

Movement of $1 will fetch Rs 22, taking INR constant

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How INR impact the Gold Prices

Particulars

Particulars

Gold

Gold

Add

Spot

1311.00

CIF in dollars

3.00

Add

Spot

1311.00

CIF in dollars

3.00
1314.00

1314.00
Multiply

Multiply

Multiply

32.15

32.15

Dollars per kg

42245.10

Dollars per kg

42245.10

995 prices

42038.08

995 prices

42038.08

Currency Rate

60.06

Currency Rate

61.06

Multiply

Add

Add

Rs per kg

2566845.06

Customs duty(8%)

256684.51

7574.42

Cess (3%)

7700.54

Landed Cost per kg

2784862.10

Landed Cost per kg

2831230.10

Bank Cost(0.10%)

2784.86

Bank Cost(0.10%)

2831.23

Final wholesale Price per kg

2787646.96

Final wholesale Price per kg

2834061.33

Final Price per 10 gms

27876

Final Price per 10 gms

28341

Rs per kg

2524806.98

Customs duty(8%)

252480.70

Cess (3%)

Add

Add

Re 1 movement will move gold prices by Rs 465 , taking Intl prices constant
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IN TANDEM

Prices of gold traded on MCX/ Shanghai/ TOCOM is converted to US$ per ounce.
*MCX prices are inclusive of Taxes.
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Time..When Volatility is Max!!!

Timings
(IST)

Important Global Cues

10:00 am

MCX Opens

12:30 pm

London Market Opens

01:30 pm

LME Inventory data

04:00 pm

LME Ring Opens

05:50 pm

Opening of COMEX Session

06:00 pm

Release of U.S Economic Data

07:00 pm

US Stock Market Opens

08:00 pm

Crude Oil and Natural Gas Inventory Data on Wednesday and

Thursday respectively

09:00 pm

LME Ring Closes

11:45 pm

Closing of COMEX Session

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GLOBAL MARKETS (BULLION SPECIFIC)

TOCOM

5:30 AM - 12:00 PM,

1:30 PM - 7:30 PM

SHANGHAI

9:00 AM - 11:30 AM;

1:30 PM - 3:00 PM;
9:00 PM - 2:30 AM

MCX

10:00 AM - 11:30 PM

New York
COMEX
GLOBEX
(Next day)

8:20 AM - 1:30 PM
6:00 PM to 5:15 AM

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OUR PRODUCT BASKET

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OUR COMMODITY PIE

ALUMINIUM
NICKEL
COPPER
ZINC
LEAD

GOLD
SILVER

CRUDE OIL
BRENT CRUDE
OIL
NATURAL GAS

BULLION

BASE
METALS

ENERGY

AGRO

MENTHA OIL
COTTON
CRUDE PALM OIL
KAPAS
KAPASKHALLI
POTATO
GUARSEED
GUARGUM

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Potential still high up .

GOLD VOLUMES ACROSS EXCHANGES

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GOLD BASKET

GOLD

Gold Regular
Ahmedabad

Quote 10 gms
Lot Size 1 Kg
+/- Rs. 100/tick

Gold Mini
Ahmedabad

Quote 10 gms
Lot Size 100
gms
+/- Rs. 10/tick

Gold Guinea
Ahmedabad

Quote 8 gms
Lot Size 8 gms
+/- Rs. 1/tick

Gold Petal
Mumbai

Quote 1 gm
Lot Size 1 gm
+/- Rs. 1/tick

Gold Petal
Delhi

Quote 1 gm
Lot Size 1 gm
+/- Rs. 1/tick

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SILVER FUTURES VARIANTS

SILVER

Silver Regular

Quote = 1 Kg
Lot Size 30 Kg
+/- Rs. 30/tick

Silver Mini

Quote = 1 Kg
Lot Size 5 Kg
+/- Rs. 5/tick

Silver Micro

Quote = 1 Kg
Lot Size 1 Kg
+/- Rs. 1/tick

Silver 1000

Quote = 1 Kg
Lot Size 1 Kg
+/- Rs. 1/tick

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BULLION FUNDAMENTALS

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Gold Consumption
228

216
Total - 3480 Tons

287

373
1759

617

Jewellry
ETF
Industrial & Dental
Coins
Investment

At a time when gold peeked to $1900-Sep,2012

CHINA

19% increase in jewellery demand

22% increase in the sale of coins y-on-y
INDIA
15% increase in jewellery demand.
52% increase in coins & bars y-on-y

US
First increase in jewellery demand 7 years
43% increase in bar & coin sales y-on-y

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GOLD is GOLD!!!!

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SITE THE OPPORTUNITY..

RETURNS - YEARLY %
2008
2009
2010
2011
2012
2013

CUMMULATIVE AVG
Volatility Avg
2008
2009
2010
2011
2012

2013
2014 *

Gold Nifty Silver Crude Oil Copper USD/INR

28.51 -51.84 -5.76
-47.11 -42.64
10.9
21.37 71.46 44.91
77.48 120.94
-4.51
24.22 17.25 72.84
9.86
15.87
-3.86
31.71 -24.90 -10.21
29.58
-7.63
19.04
12.70 27.35 12.73
-5.82
8.82
2.93
-28.86
5.93 -16.86
21.68
5.55
12.95

14.9 7.54 16.3

14.3

16.8

6.24

Crude
Gold
Nifty
Silver
Oil
Copper USD/INR
2%
2.81%
2.91% 3.46% 2.84%
1.28%
2.14%
2.04% 3.4%
2.6%
0.95%
1.02%
1.65% 1.87% 1.77%
1.22%
1.32%
2.71% 2.3% 1.88%
0.77%
0.95%
1.50% 1.57% 1.19%

1.39% 1.30% 2.06% 1.57% 1.39%

0.90% 0.96% 1.53% 1.31% 1.10%

1.22%
0.66%
0.52%
0.53%
0.76%

0.81%
0.5%

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AGRO SEGMENT

AGRO SEGMENT

COTTON
COMPLEX

KAPAS
LOT SIZE:4 MT
TICK :10 PAISE

MENTHA OIL
LOT SIZE:360KG(2
DRUMS)
TICK : 10 PAISE

KAPAS KHALLI
LOT SIZE:10 MT
TICK:50 PAISE

POTATO
LOT SIZE:30 MT
TICK:10 PAISE

CRUDE PALM OIL

LOT SIZE: 10 MT
TICK : 10 PAISE

COTTON
LOT SIZE:25 BALES
TICK : RS 10

GUAR SEED
LOT SIZE:1 MT
TICK: Re 1

GUAR COMPLEX

GUARGUM
LOT SIZE:1 MT
TICK: Re 1

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CONTRACTS AT A GLIMPSE
Commodity

Current Price (Rs.)

Tick Size
(Rs.)

Contract Profit per

Size (Units) tick (Rs.)

Contract value (Rs.)

Approx. Margin 5 % in Rs. / lot

Crude

6516

100

100

651600

Brent

6895

100

100

689500

NG

225

0.1

1250

125

281250

Gold

29700

1000

100

2970000

Gold Mini

30153

100

10

301530

Gold Guinea

24100

24100

Gold Petal

3015

3015

Silver

48900

30

30

1467000

Silver Mini

48910

244550

Silver Micro

48915

48915

Copper

458

005

1000

50

458000

Copper Mini

458

0.05

250

13

114500

Zinc

116

0.05

5000

250

580000

Zinc Mini

116

0.05

1000

50

116000

Aluminium

111

0.05

5000

250

555000

Aluminium Mini

111

0.05

1000

50

111000

Nickel

864

0.1

250

25

216000

Nickel Mini

864

0.1

100

10

86400

Lead

128

0.05

5000

250

640000

Lead Mini

128

0.05

1000

50

128000

32580
34475
14063
148500
15077
1205
150.75
73350
12228
2445.8
22900
5725
29000
5800
27750
5550
10800
4320
32000
6400

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How to start : Mini Contracts

BULLION
GOLD

LOT SIZE SILVER

LOT SIZE

GOLD MINI

100 GM

SILVER MINI

5 KG

GOLD GUINEA

8 GM

SILVER MICRO

1 KG

GOLD PETAL(Mumbai)

1 GM

SILVER 1000

1 KG

GOLD PETAL (Delhi)

1 GM

BASE METALS
COPPER

LEAD

ZINC

ALUMINIUM

COPPER MINI
250 KG

LEAD MINI ZINC MINI ALUMINIUM MINI

1MT
1MT
1MT

NICKEL

NICKEL MINI
100 KG
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Diversifying into gold

GOLD
GUINEA

Particular GOLD MINI

Trading Lot 100 gm

8gm
30153
Price*
Turnover
301530
(Rs)
Per Rupee
Movement
Tick Size
(Rs)
Margin
required
(Rs)

15077

GOLD
GOLD PETAL
PETAL(Mumbai) (Delhi)
1gm

1gm

24100

3015

3015

24100

3015

3015

10

150.75

150.75

1205

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Silver Lining

Silver

Particular

SILVER MINI

SILVER MICRO

SILVER 1000

Trading Lot

5 Kg

1Kg

1Kg

Price*

48910

48915

48915

Turnover (Rs)

244550

48915

48915

Per Rupee
Movement

Tick Size (Rs)

2445.8

2445.8

Margin required (Rs) 12228

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Kick start
Base Metals

Particular

Copper mini

Zinc mini

Lead mini

Nickel mini

Aluminium
Mini

Trading Lot

250Kg

1MT

1MT

100Kg

1 MT

Price*

Turnover

458

116

128

864

111

114500

116000

128000

86400

111000

250

1000

1000

100

1000

Per Rupee Movement

Tick Size
Margin required

5 paise / Kg
5725

5 paise /Kg
5800

5 paise / Kg
6400

10 paise /Kg
4320

5 paise /Kg
5550

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Minis taking care of the Macro

Avenue for retail clients to test the markets.

Only exchange where delivery in Mini contracts is

possible.
Enables leveraging possible at multiple price levels

by minimising risk.

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And the Story for Commodities Remains Compelling..

Demand for asset backed investments will remain strong-in

times of uncertainty.
QE III winding up is a strong signal that the developed world

is reducing dependence on paper money and real demand is

seeping in.
Low interest rates continue to encourage investors into real
assets.
A strong dollar and weak fundamentals are

counterbalancing.
Euro is providing enough room for asset backed investments

to grow.

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WEBSITES
www.forexfactory.com
www.reuters.com

www.bloomberg.com
www.kitco.com
www.investing.com

www.oilngold.com
www.basemetals.com
www.lme.com

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Free SMS Service (Push Based MCX price update)

Step:1
How to Register: Go to www.mcxindia.com
Open the link MCX price update
through SMS Service

Step:2
Login

Step:3
Get Registered
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Free SMS Service (Push Based MCX price update)

Single

Step:4
Commodity
Selection

Multiple

The mentioned commodities name are being sent in the Push based SMS service.

GOLD / SILVER
CARDAMOM /COTTON / KAPASKHALI/ KAPAS/ MENTHAOIL/ CPO/ POTATO

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GOLD DELIVERY PROCEDURE

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Delivery Procedure

DELIVER LOGIC: -COMPULSORY DELIVERY Any seller having open

position on the expiry date fails to deliver then a penalty of 6.5% shall be
imposed.
Tender Period: - 1st to 6th day of the contract expiry month.

Delivery Period: -1st to 6th day of the contract expiry month.

Normal trading ends on the last day of the previous month prior to
the expiry month.

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Delivery Procedure

Pay-in of Commodities (Delivery by seller member): On the Tender days

by 6.00 P.M. except Saturday, Sunday and public holiday.
Pay- in of Funds: By 11:00 A.M. on Tender day + 1 basis.
Pay-out of Funds and Commodities (Delivery to Buyer Member): By 05:00
P.M. on Tender day +1 basis.

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Delivery Procedure
1st Day: 5% Delivery period margin on an incremental basis over
5
days is levied on all the open positions.

Intention is received from buyers upto 6:00 pm and sellers upto 6:00 pm.
Intention received from the buyers and sellers are matched and marked for
delivery after market close.
Delivery Order Rate: Settlement/closing price of the 1st day.
Before sellers gives intention for the Delivery he has to deposit goods at
the designated clearinghouse of Group 4 Securitas along with all the
documents that is mentioned in the Contract specification, on the same
day.
The very next day marked buyer has to deposit the funds in the exchange
before payout, that fund will be transferred to seller in the evening.
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Delivery Procedure
Close out of outstanding positions: All outstanding positions on the

expiry of contract not settled by way of delivery in the aforesaid manner

will be settled as per the Due Date Rate.
DDR (Due Date Rate): DDR is calculated on 5th day or Expiry day of

the contract month. This is calculated by way of taking simple average of

last 3 days of the spot market of Ahmedabad.
Taxes, duties, cess and levies: Ex-Ahmedabad, Inclusive of all

charges/levies relating to import duty, customs to be borne by seller. But

excluding Sales Tax/ VAT, any other additional tax or surcharge on
sales tax, local taxes and octroi to be borne by the Buyer.

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Delivery Procedure

IN CASE OF FAILURE TO TAKE OR MAKE DELIVERY BY ANY OF THE PARTY A PENALTY

OF 2.5% IS LEVIED ON THE DEFAULTING PARTY.2% will be credited to IPF & 0.5% is credited
to counter party.
4% is levied as replacement cost to defaulting seller/buyer :Out of which 90% is given to counter
party & 10% retained by Exchange as administrative charges
ADDITIONALLY

On the date of default by the Seller, if spot price is higher by 6.5% or more than the DOR (Delivery
Order Rate), then the difference amount between Spot Price on default date minus (DOR + 6.5 %
of DOR). e. g. DOR is ` 100 and Spot Price is ` 110, then the difference amount would be ` 3.5 i.e. `
110 -(100 + 6.50). Such difference will be charged to the seller.

On the date of default by the Buyer, if spot price is lower by 6.5% or more than the DOR (Delivery
Order Rate), then the difference amount between DOR minus (Spot Price on default date + 6.5 %of
DOR). e.g. DOR is ` 100 and Spot Price is ` 90 on default date , then difference amount would be
` 3.5 i.e. ` 100 - (90 +6.50). Such difference will be charged to the buyer.

Option of Delivery: It can be in physical or Demat form. If sellers produce in Demat form the
buyer get in Demat. If sellers produce in physical form the buyer get in physical form.

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Group 4 Vaulting Charges

Charges

Gold

Silver

Vault Charges

Rs.35/- per kg per day

Rs.3.5/- per 100 gms
per day and for Gold
Guinea is Rs. 0.10 per
Guinea

Rs. 35/- for 30 kg bar

Per day.
Upto maximum 90 days
91 days plusRs 45 /
per l30 kg/ per day

Loading and
Unloading
charges

No loading/unloading
charges for gold

Rs. 15/- per bar

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Delivery Procedure-Gold Petal

Close out of outstanding positions: All outstanding positions on the expiry of

contract not settled by way of delivery in the aforesaid manner will be settled as
per the Due Date Rate.
DDR (Due Date Rate): Exchange shall announce the DDR based on the

Mumbai Spot price for Gold (10gms) 995 purity, which shall be converted to 999
purity (Gold Spot price 995 purity * 999/995), polled on the last day of the expiry
of this Gold Petal contract by around 5.00pm. The arrived spot price will be
converted for 1 gms Gold Petal (Gold spot price per 10 gms X 1/10). No trading
shall be allowed after the declaration of DDR
Taxes, duties, cess and levies: Ex-Mumbai, Inclusive of all charges/levies

relating to import duty, customs to be borne by seller. But excluding Sales Tax/
VAT, any other additional tax or surcharge on sales tax, local taxes and octroi to
be borne by the Buyer.

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