Contract Specifications of Crude Palm Oil

Annexure
Symbol CPO
Description CPOMMMYY
Contract Listing Contracts are available as per the Contract Launch Calendar.
t st
Contract Start Day 1 day of contract launch month. If 1 day is a holiday then the
following working day.
Last Trading Day Last calendar day of the contract expiry month. If last calendar day
is a holiday then the preceding working day.
Trading
Trading Period Mondays through Fridays
Trading Session Monday to Friday: 9.00 am to 09.00 pm
Trading Unit 10 MT
Quotation/Base Value Rs./10 Kg
Price Quote Ex- Kandla, exclusive of Sales tax/ GST
Maximum Order Size 400 MT
Tick Size (Minimum 10 paise
Price Movement)
Daily Price Limits DPL shall have two slabs - Initial and Enhanced Slab. Additionally,
the Exchange has implemented a narrower slab of 3%. Once
narrower slab limit of 3% is reached in any contract, the DPL shall
be relaxed upto 4% without any cooling off period in the trading.
Once the initial slab limit of 4% is reached in any contract, then after
a period of 15 minutes, this limit shall be increased further by
enhanced slab of 2%, only in that contract. The trading shall be
permitted during the 15 minutes period within the initial slab limit.
After the DPL is enhanced, trades shall be permitted throughout the
day within the enhanced total DPL of 6%.

Initial Margin* Minimum 10% or based on SPAN whichever is higher

Extreme Loss Margin Minimum 1%
Additional and/ or In case of additional volatility, an additional margin (on both buy
Special Margin & sell side) and/ or special margin (on either buy or sell side) at
such percentage, as deemed fit; will be imposed in respect of all
outstanding positions.
Maximum Allowable For individual clients: 90,000 MT
Open Position For a member collectively for all clients 9,00,000 MT or 15% of the
market wide open position, whichever is higher.

Near Month Limits

For individual clients: 22,500 MT
Near month member level position limit shall be equivalent to the
one fourth of the overall member level position limit.
Delivery
Delivery Unit 10 MT (with tolerance limit of 250 Kgs) which means that if the
seller delivers any quantity between 9.75 MT to 10.25 MT, it will
be construed as adequate discharge of his delivery obligation of 10
MT, though he will get the value only for actual quantity delivered by
him.
Delivery Period Delivery period margins shall be higher of:
Margin** a. 3% + 5 day 99% VaR of spot price volatility Or
b. 25%
Delivery Centre(s) Within Kandla municipal limits
Quality Specifications Crude Palm Oil of good merchantable quality in bulk and
unbleached.
Refractive Index at 50 C 1.4491 to 1.4552
Specific Gravity @ 42 C 0.895 to 0.897
Iodine value (Wij’s 45 – 56
method)
Saponification value 195 – 205
Unsaponifiable matter Not more than 1.2%
FFA by wt. Not more than 5.0%
Moisture Not More than 0.25%
Due Date Rate (Final
Settlement Price) For contracts where Final Settlement Price (FSP) is determined
by polling, unless specifically approved otherwise, the FSP shall
be arrived at by taking the simple average of the last polled spot
prices of the last three trading days viz.,E0 (expiry day), E-1 and
E-2. In the event the spot price for any one or both of E-1 and E-2
is not available; the simple average of the last polled spot price
of E0,E-1, E-2 and E-3, whichever available, shall be taken as
FSP. Thus, the FSP under various scenarios of non-availability of
polled spot prices shall be asunder:

Scenario Polled spot price FSP shall be

availability on simple
E0 average of
E‐1 E‐2 E‐3 last
polled spot
prices on:
1 Yes Yes Yes Yes/No E0, E‐1, E‐2
2 Yes Yes No Yes E0, E‐1, E‐3
3 Yes No Yes Yes E0, E‐2, E‐3
4 Yes No No Yes E0, E‐3
5 Yes Yes No No E0, E‐1
6 Yes No Yes No E0, E‐2
7 Yes No No No E0
In case of non-availability of polled spot price on expiry day
(E0)/predetermined number of days due to sudden closure of
physical market under any emergency situations noticed, Clearing
Corporation shall decide further course of action for determining
FSP and which shall be in accordance with MCXCCL circular no.
MCXCCL/SPOT/077/2020 dated April 13, 2020
For the purpose of spot price the ‘actual user condition’ of the
commodity will be considered.
Delivery Logic Both Option

* A) The Margin Period of Risk (MPOR) shall be in accordance with SEBI Circular no.
SEBI/HO/CDMRD/DRMP/CIR/P/2020/15 dated January 27, 2020. For applicable minimum
MPOR, refer latest circulars issued by MCXCCL from time to time.
B) For all the applicable margins, refer the latest circulars issued by the Exchange or Multi
Commodity Exchange Clearing Corporation Limited (MCXCCL) from time to time.

** Delivery Period Margin - As per SEBI directive EBI/HO/CDMRD/DRMP/CIR/P/2016/77 dated

Sep. 01, 2016.

Contract Launch Calendar for Crude Palm Oil Futures contracts expiring during the year
2022

Contract Launch Months Contract Expiry Months

September 2021 January 2022
October 2021 February 2022
November 2021 March 2022
December 2021 April 2022
January 2022 May 2022
February 2022 June 2022
March 2022 July 2022
April 2022 August 2022
May 2022 September 2022
June 2022 October 2022
July 2022 November 2022
August 2022 December 2022

(Reference Circular no MCX/TRD/560/2021 dated August 31, 2021)

 Delivery and Settlement Procedure of Crude Palm Oil Contract

Delivery logic Both Option

Tender day 1st working day after expiry of contract
Tender and delivery period 1st to 2nd working days after expiry of the contract.
Buyer’s and Seller’s On the contract expiry day by 12:00 noon
Delivery Intention Seller will submit copies of relevant documents as a
proof of holding stock at the time of giving his intention.

Mode of communication MCX eXchange

On the basis of intention received from the buyers and
sellers, the MCXCCL will match the total quantity offered
by the buyers and sellers and with respect to the
Matching of Buyer’s and matched quantity, the allocation of delivery between the
Seller’s intention buyers and sellers will be done. The unmatched quantity of
open position will be closed out as per DDR and actual
delivery will be effected only to the extent of matched
quantity.
Dissemination of the
information on delivery On the contract expiry day by 1.00 p.m.
intention on TWS
Delivery period margins shall be higher of:
a. 3% + 5 day 99% VaR of spot price volatility Or
Delivery Period Margin
b. 25%
Sellers are exempted from payment of all types of margins,
Delivery Period Margin
if goods are tendered as Early Pay In with all the
Exemption
documentary evidences. However, MCXCCL shall continue
to collect mark to market margins from Sellers.
Delivery Allocation
On Expiry date of the contract At
- Date
Due date rate (DDR)
- Rate
Delivery Pay-in of
E+2 working days:12.00 p.m. (E stands for expiry)
Commodities
The seller will have to do the delivery pay-in through
Repository Account with CDSL Commodity Repository Ltd.
(CCRL) by earmarking his existing valid commodity balance
in the CCRL Repository Account towards the pay-in
obligation.
Delivery Pay-out of
E+2 working days: 2.00 p.m.
Commodities
Pay-in of Funds E+2 working days: 12.00 p.m.
Pay-out of Funds E+2 working days: 2.00 p.m.
After getting (matching) intentions from the buyer and
seller to take or give delivery, if any of the party fails to
Penal Provisions honor his obligations, a penalty of 2.5% of the DDR will
be imposed on him.
Additionally, a replacement cost of 4% of DDR will be
recovered from the defaulting buyer / seller.
Out of the penalty, 2% (i.e. 80% of penalty amount) will
be credited to SGF of the MCXCCL and 0.5% (i.e. 20%
of penalty amount) will be credited to the counter party.
While, out of the replacement cost recovered, 90% will
be passed on to the counterparty and 10% will be
retained by the MCXCCL.
 Ex- Kandla, exclusive of Sales tax/ Local taxes/ GST
Taxes, Duties, Cess and wherever applicable is to be paid by the seller to the
Levies sales tax/GST authorities on all contracts resulting in
delivery. Accordingly the buyer will have to pay the
taxes/GST to the seller at the time of settlement. In
case of sales tax exemption, such exemption certificate
should be submitted before settlement of the obligation.
Incidence of customs duty payable whether concessional
or otherwise will be in seller’s account. In case of Inter-
State movement, Buyer has to submit requisite forms,
else pay taxes as applicable.

Odd lot Treatment Not applicable

Adjustment of
Not applicable
Transportation Cost
Warehouse/Storage Tank, -Borne by the seller upto commodity pay-out date
insurance -Borne by the Buyer after commodity pay-out date
Buyer will not have any option about choosing the
Buyer’s option for lifting of
place of delivery and will have to accept the delivery as
Delivery
per allocation made by the MCXCCL.
Delivery Center Within Kandla municipal limits
Each delivery shall be in multiples of minimum delivery
Delivery of Goods lots and shall be designated for only one delivery center
and one location in such center. The goods delivered
through CCRL Repository Account should be valid as per
contract specifications from the MCXCCL approved quality
certifying agency/s.
Delivery once submitted cannot be withdrawn or
cancelled or changed, unless so agreed by the
MCXCCL. Goods tendered under delivery shall be in
conformity with the contract specifications.
The members tendering delivery will have the option of
delivering such grades of goods as permitted by the MCX
under the contract specifications. The Buyer will not have
Delivery Grades any option to select a particular grade and the delivery
offered by the seller and allocated by the MCXCCL shall
be binding on him.

At the time of issuing delivery, the member must prove to

the MCXCCL that he holds stocks of the quantity and
Evidence of Stock in quality specified at the declared delivery center. This
possession should be substantiated by way of producing all
documentary evidences.
In case the buyer does not agree to the Assayer's
report as to the quality of the commodity, he shall
Sampling and Analysis at
desire for second sampling and intimate the MCXCCL in
the time of delivery
writing within 48 hours of the commodity pay-out date.
Sampling Procedure The system of drawing of samples tendered for delivery
will be 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, out of the MCXCCL empaneled surveyor/s for
the contract, 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 the 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 MCXCCL.
Failure of First Sample If the first sample as examined by the buyer's surveyor
fails to conform to the quality standards specified, the
buyer shall intimate the seller within 72 hours of the
collection of sealed sample along with a copy of the
Surveyor’s report. The seller shall immediately send the
second sealed sample to another approved laboratory
(out of MCXCCL approved panel), which is also agreed
by the MCXCCL. In the event the buyer and seller do
not mutually reach agreement with the results of the
second sample test, then the MCXCCL shall send the third
sealed sample to any one of the approved laboratories /
surveyor, as decided by the MCXCCL.
Final Surveyor’s report The final approved laboratory and/or surveyor’s report
shall be forwarded by the MCXCCL to the parties
immediately on receipt of the same. In case dispute on
quality of the goods allocated to the buyer is raised by the
buyer before funds pay-out to the seller, the pay-out of
funds to the seller will be made on the basis of the
final test report received by the MCXCCL, pursuant to the
third and the final test, or it would be recovered from the
seller, if the payment was already released. The
MCXCCL 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 be tantamount to failure on
the part of the seller to give delivery, whose outstanding
short position, shall be closed out as per the Penal
provision applicable for seller default or any other rate as
decided by the MCXCCL, treating the failure on the part
of the seller to give delivery as shortage. The decision of
the MCXCCL in this regard shall be final and binding to
both the parties.
Obligations of the In order to ensure that tests are exactly comparable and
independent analyst that the results are consistent, the final approved
laboratory and / or surveyor shall determine the
particular analytical test by applying the methods
specified in relevant IS. The said laboratory and / or the
surveyor shall be required to append a certificate or
certificates to those effects to the analysis report issued
by the laboratory and/or surveyor.
 Every member delivering and receiving goods through
CCRL Repository Account by way of delivery shall provide
Legal Obligation appropriate tax forms wherever required as per law and
as custom and neither of the parties shall unreasonably
refuse to do so.
Extension of Delivery The MCXCCL may extend the Delivery Period due to
Period either force majeure or any other reason, as it thinks fit
in the interest of the market.
Applicability of Regulations The general provisions of Byelaws, Rules and Regulations
of the MCXCCL and decisions taken by SEBI/ the Board
of Directors/Relevant Authority of the MCXCCL in respect
of matters specified in this document shall form an integral
part of this contract. The MCXCCL or SEBI, as the case
may be, may further prescribe additional measures
relating to delivery procedures, warehousing, quality
certification, margining, risk management from time to
time.

Members and market participants who enter into buy and

sell transactions on MCX need to be aware of all the
factors that go into the mechanism of trading and clearing,
as well as all provisions of the MCXCCL’s Bye Laws,
Rules, Regulations, circulars, directives, notifications of the
MCXCCL as well as of the Regulators, Governments and
other authorities.

It is the sole obligation and responsibility of the Members

and market participants to ensure that apart from the
approved quality standards stipulated by the MCX, the
commodity deposited / traded / delivered through the
Approved warehouses of MCXCCL is in due compliance
with the applicable regulations laid down by relevant
authorities like Food Safety Standard Authority of India,
AGMARK, BIS, Warehousing Development and
Regulatory Authority (WDRA), Orders under Packaging
and Labelling etc., as also other State/Central laws and
authorities issuing such regulations in this behalf from time
to time, including but not limited to compliance of
provisions and rates relating to Sales Tax/Local taxes/
GST, etc. as applicable from time to time on the underlying
commodity of any contract offered for deposit / trading /
delivery and that MCX/ MCXCCL shall not be responsible
or liable on account of any non-compliance thereof.

All the Sellers giving delivery of goods and all the buyers
taking delivery of goods shall have the necessary GST
Registration as required under the Goods & Service Tax
(GST) Act and obtain other necessary licenses, if any.

In respect of all contracts executed by the Members on

MCX, it shall be the responsibility of the respective
members to pay all applicable statutory fee, stamp duty,
taxes and levies in respect of all deliveries as well as
futures contracts directly to the concerned
Central/State/Local Government Departments and the
MCX/MCXCCL shall not be held liable or accountable or
responsible on account of any non-compliance thereof.

The buyer shall have to lodge his claim, if any, against

quality and/or quantity of goods/ delivery allocated to him if
any, while retaining the disputed goods in the warehouse/s
 (without lifting them out of the warehouse/s), within 48
hours from the date of scheduled commodity pay out of the
MCXCCL, failing which, no claim shall be entertained by
the MCXCCL thereafter.

The MCXCCL is not responsible and shall not be held

liable or accountable or responsible for value of the
goods/stock of the commodities stored/lying in MCXCCL
designated warehouse/s, vault agency and which is
fully/partially confiscated / seized by any local or statutory
or any other authority for any reason whatsoever or for any
deterioration in quality of the goods stored due to above
reason or which have passed the Final Expiry date and
continue to remain in the MCXCCL accredited warehouse.
The decision of the MCXCCL shall be final and binding to
all Members and their constituents in this regard. (The
interpretation or clarification given by the MCXCCL on any
terms of this delivery and settlement procedure shall be
final and binding on the members and other market
participants.)

(Reference Circular no MCXCCL/MO/138/2020 dated June 23, 2020).