TaxTMI 
TaxTMI 
Staggered delivery, early delivery system, early pay-in facility, penalty on delivery default, fixation of FSP and changes in expiry dates
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....cable to recognised associations under the Forward Contracts Regulation Act, 1952 (FCRA) would continue to remain in force for a period of one year from the date on which FCRA was repealed (September 29, 2015), or till such time as notified by SEBI, whichever is earlier. 2. Erstwhile FMC, from time to time, had prescribed various norms for National Commodity Derivatives Exchanges related to staggered delivery, early delivery system, early pay-in facility, penalty on delivery default, fixation of Final Settlement Price (FSP) and changes in expiry dates. This circular is beingissued to consolidate and update such norms prescribed for National Commodity Derivatives Exchanges by the erstwhile FMC. 3. Accordingly, the following are prescribed:....
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....e delivery. If the intentions of the buyers/sellers match, then the respective positions will be closed out by physical deliveries. The process of pay in and pay-out will be completed on T + 2 basis, where 'T' stands for the day on which matching has been done. b. If there is no intention matching for delivery between sellers and buyers, then such delivery intention will get automatically extinguished at the close of E-1 day. The intentions can be withdrawn during the course of E- 14 to E-1 day if they remained unmatched c. In respect of delivery defaults after the matching of delivery intentions, penalty provisions as applicable in the case of delivery defaults in compulsory delivery contracts will be applied. d. On the expir....
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.... date, if the average price so determined is higher than Settlement Price, else this component will be zero.) Futures contracts on non-agri commodities: 3% of Settlement Price + replacement cost (difference between settlement price and higher of the last spot prices on the commodity pay-out date and the following day, if the spot price so arrived is higher than Settlement Price, else this component will be zero.) Exchanges shall have the flexibility to increase/decrease penalty for specific commodities depending on situation, in consultation with SEBI. Norms for apportionment of penalty - * At least 1.75% of Settlement Price shall be deposited in the IPF of the exchange * Up to 0.25% of Settlement Price may be retained by the Exchang....
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....iced at the basis centre, Exchanges shall decide further course of action for determining FSP in consultation with SEBI. f. Change in expiry date Exchange may advance expiry date of running contractin case physical market is closed in the notified basis centre on the expiry day of the contract, due to festivals, strikes, erratic weather conditions, etc. Decision about advancing expiry of running contract shall be intimated to the trade participants at least 10 days before the revised expiry date. The delivery period may be advanced accordingly for contract having staggered delivery. The FSP of such contractshall be fixed as per the above procedure (para 3e above as per modified expiry date). 4. The provisions of this circular shall come....