Contract Specifications & Special terms and conditions for Lemon Variety Indian Acid Lime at the Origin Ex- Origin

Transcription

1 Contract Specifications & Special terms and conditions for Lemon Variety Indian Acid Lime at the Origin Ex- Origin FFRESH Market members are hereby requested to take a note of the contract specifications & special terms and conditions for trading of Queen Lemon Indian Acid Lime Variety on FFRESH Platform. Commodity Symbol Variety LEMON LEIALCBA INDIAN ACID LIME The Contract Specifications along with the Special terms and conditions are given in Annexure 1. The contract and the transactions therein will be subject to Rules, General as well as Special Terms & conditions, circulars, directives & notices issued by FFRESH Market from time to time.

2 # ANNEXURE 1:- CONTRACT SPECIFICATIONS FOR Lemon (Variety: Indian Acid Lime) Trading system Symbol Description Name of Commodity Basis NCDEX e Markets Ltd. LEIALCBA Lemon-Indian Acid Lime Cardboard Box Aggregators Contract Lemon (Variety: Indian Acid Lime) Ex-Origin ; Specific ex-origin locations as made available from time to time. Inclusive of APMC Market Fee but exclusive of all other taxes (as applicable) Lot Size 260 Kg (Minimum initial Order Quantity: 260 Kgs) Minimum Order Quantity 260 kgs (Thereafter multiple of 1 kg ) Maximum Order Quantity Quotation/base value Order Validity Matching Logic Delivery Quantity Tolerance Range Carton Weight Kgs per Kg Orders are valid only for the trading session in which they are placed. At the end of trading session, unmatched orders get cancelled. Fuzzy Matching with price time priority. *Look up fuzzy ffresh.neml.in. ± 5 % of traded quantity in terms of number of cartons kg /Box (Lemons including Cardboard box weight) Tolerance: ±2 Kg per carton Tick size Buyer/Seller Margin % Delivery Modes Delivery Logic Price Limits Rs. Per Kg 5 % initial pre-trade margin from Buyer 0 % pre trade margin from Seller As made available from time to time. *See the note on Delivery Modes Trade to Trade - Every trade results into delivery or payment obligation. Price Limit Filters 50 % of Base Price Base price as changed from time to time.

3 Trading hours Seller/Buyer prerequisites Obligation Date Mondays to Friday. 11:00 am to 06:00 pm NeML may vary the above timing with due notice. NeML may suspend or resume trading at any time at its absolute discretion. Specific permissions for buying and specific permission for selling required. The reference date for delivery and payment obligation as chosen by buyer and seller at the time of order. The obligation date is at least 2 day but not more than 5 days from order date. Settlement Calendar As defined in the settlement calendar table below Applicable terms and conditions All transactions shall be subject to special terms and conditions annexed herewith besides the General Terms and Conditions and all participants shall be deemed to have agreed to the above contract specifications and the special terms and conditions Transaction Charges Buyer and Seller shall pay transaction charges at the time of final settlement to the NeML. The transaction charges are 2% of trade value plus applicable service tax. Premium and Discount No standardized grade based premium/discount applicable. However, seller and buyer could agree to lump sum quality premium or discount and record it in post-trade system. Such premium or discount shall be result in additional pay-in by the buyer and/or additional / reduced pay-out to the seller. Options Available for Trade and Delivery Terms Obligation Date - The date used as reference date to determine dates for payment and delivery obligations as specified at the time of buy and sell order. Obligation date has to be between 1 and 5 days from order and trade date. Once matching happens, obligation date can t be changed. Delivery Mode Buyers and Sellers may choose one of available delivery modes for their order. Matching happens only if delivery modes match.

4 Location Location specifies Lifting Location in case Ex-Origin and Ex- Origin Direct Delivery modes and Delivery Location in case of DNL and DNL Direct delivery modes. Buyers and seller may choose one available locations. Matching happens only if locations match. Farm Location Farm Locations specifies the location of the farm from where the commodity is produced. Buyers and seller may choose one available locations. Matching happens only if locations match. Pack Type Buyers and sellers choose pack type out of available pack types. Matching happens only if pack types match. Bags used for packing should be sound and fresh bags free from any Cut, torn, wet and damage Quality Mode Two options - Quality Assured and Quality Certified are available. Quality Assured implies seller assures the stated quality. Quality Certified implies third party verifies the quality and issues a certificate. Buyers and Sellers may choose quality mode. Matching happens only if quality modes match. Grade Option - Only 1 grade shall available for trade of agreed size. Matching happens only if that particular grade matches. Grade Mix: In case Buyer chooses Mix Grade, breakup of the mix has to be provided in the Grade Mix field.

5 Non Quality Criteria Negotiable Note: Lemon Quality Specifications Over mature Lemons Lemon with bacterial black spot Lemon with Sun Burn Lemon with Anthracnose Hail Scar, wind scar Split fruit All the grades should be free from following defects: Major Defects: physical damage on skin, Lemons with prominent sun burn marks/ black spots, lemons with holes on skin. Over ripened lemon. because of over ripening. For all classes: a total tolerance of 5 per cent, by number or weight, of Lemons not satisfying the requirements as regards sizing is allowed. Uniformity- The contents of each box (or lot for produce presented in bulk in the transport vehicle) must be uniform and contain only Lemons of the same origin, variety or commercial type, quality and size. Size Specifications Grade Variety Size (Dia) in mm or Weight Grade-A Lemons 50gms each and above

6 Quality Specifications Fresh properly matured lemons with dark green skin firm texture with.free from any crack or rottening or over ripened lemon. It shall not have internal breakdown. Delivery Modes and Terms The delivery modes applicable for this contract are listed below. All applicable delivery modes may not be available at all times. Ex-Origin The lifting is at the location specified for the trade on buyer s account through authorized logistics service provider. Quality certification if any has to be completed before lifting. Transportation is on buyers account at standardized rates. Transportation charges collected in settlement. Ex-Origin Direct - The lifting is at the location specified for the trade on buyer s account through logistics service provider of buyers choice. Quality certification if any has to be completed before lifting. Transportation is on buyers account. Transportation charges not collected in settlement. DNL (Delivery at named Location) Delivery at the location specified for the trade. Buyer retains right to check quality at delivery location. Delivery through approved logistics service provider only. Transportation charges on sellers account deducted from pay-out. Seller should ensure that bid should be inclusive of applicable transportation charges. DNL Direct - Delivery at the location specified for the trade. Buyer retains right to check quality at delivery location. Delivery through approved logistics service provider only. Transportation charges on sellers account deducted from pay-out. Seller should ensure that bid should be inclusive of applicable transportation charges. # SPECIAL TERMS & CONDITIONS FOR THE SALE & PURCHASE of Lemon VARIETY-Indian Acid Lime FROM Nadiad Surat ON THE NCDEX e Markets Ltd Platform. DEFINITIONS 1. TRADING SYSTEM: The Automated Trading system shall mean the computer system including hardware, software and related communication systems made available by the NeML for online selling and buying of the commodity in FFresh Market.

7 2. NeML `NeML shall mean the NCDEX e Markets Ltd. 3. SELLER Seller shall mean the entity registered as seller for FFRESH Market. All sellers in FFRESH Markets need prior registration with FFRESH Market and need to be approved as sellers for specific Commodity and Contract. Only FFRESH Markets approved seller shall be allowed to participate in buying and selling of specific Commodities. 4. BUYER Buyer shall mean the entity registered as Buyer for FFRESH Market. The buying members and buying clients need prior registration with FFRESH markets to buy specific commodities under this contract. There are two categories of buyers recognized in the FFRESH Market. Corporate Buyers who buy specific commodities in FFRESH Market for their own use and Franchisees who buy specific commodities in FFRESH Market and may also use the FFRESH market distribution module to sell to their customers. Franchisees are also allowed to appoint sub-franchisees to buy in the FFRESH Market. 5. HUB OPERATORS Hubs are collection centres, dry storages operated by authorized Hub Operators. Hub operators are approved by NeML specifically for FFRESH Markets. Hub operators manage all operations at the hubs. These norms shall be separately published at and shall include storage norms for specific commodities. 6. Transport Operators Transport operators operate vehicles that are used for delivering FFRESH Market obligations. Transport operators are approved by NeML specifically for FFRESH Market. Schedulers Logistics India Pvt. Ltd. are empanelled transport operators under the FFRESH Market. Indicative transportation charges shall be published on ffresh.neml.in and may be revised from time to time. Service charge will be as

8 applicable over and above the indicated charges. The Buyer shall be entitled to appoint and engage any other transport operator at its own cost and expense However, NeML will not be responsible for any of the Transport facilities and Transport operator will be directly responsible for all transport related issues. 7. Quality Assayers Quality Assayers are approved by NeML specifically for FFRESH Market. Bureau Veritas India Pvt. Ltd. is the empanelled assaying agency for FFRESH Markets. Trades which are of Quality Certified category, which means that buyer and seller has agreed for quality testing, shall be tested by empanelled assayers as per the quality parameter mentioned in the contract. Assaying Charges applicable shall be borne by the Buyer and deducted from the final settlement by NeML. Sampling and testing (Assaying) charges applicable for testing of Lemon will be Rs (rupees three thousand) plus service tax per truck load of 10 MT. Additional Load will be charged as a complete truck Load. The assaying charges are indicative in nature and may be revised from time to time. 8. TERMS & CONDITIONS: All the transactions, contracts, deals and trades for sale/purchase of Lemon Indian Acid Lime variety as notified herein by NeML entered into through the Trading System of NeML shall be governed by the contract specifications, General Terms and Conditions, the terms and conditions stipulated herein below and any further terms and conditions as may be specified or informed by the NeML from time to time The location for delivery of Lemon variety pursuant to trades on the NeML shall be ex- Delivery centre requested by buyer The Seller and Buyer shall offer, respectively, to sell and to buy Lemon of quality and details as specified in the contract specifications herein on the automated trading system and the Seller as well as the Buyer shall be bound by all the terms and conditions stated herein and also by the Rules and General Terms and Conditions prescribed by the NeML.

9 8.4. Trade would occur on the trading system/platform of NeML whereby buy and sell orders are matched on price-time priority and on any other parameter/s put in place by the NeML from time to time All trade positions shall have to be settled by giving and taking delivery of the commodity traded The Buyers/Seller shall not be permitted to square-off their sell or buy positions The members shall be permitted to modify the buy/sell quotes till the time of matching of the order on the NeML trading platform 8.8. Buyer and Seller shall have to maintain prescribed margin for buy and sell positions as mentioned in this contract note Short selling of commodities shall not be allowed on the trading platform An initial margin amount of 10% of the purchase order value shall be charged from the Buyer towards buy trade position. The percentage of margin amount towards buy trade position shall be as deemed and decided by the NeML and shall also be subject to revision at the discretion of the NeML The buyer has to make payment of entire value of trade on O+ zero day; here O is the obligation date. 9. Unit of Trading & Unit for price Quotation: Offers for sale & purchase of Lemon acid lime Variety can be made in a minimum lot size of 20 Cardboard Boxes with multiples of 10 Boxes thereafter The unit of price quotation shall be Rupees per Box of 20kg (Rs/ Box of 20kg ) 9.3. The orders/trades will be on ex-delivery centre chosen by buyer basis and will be quoted on the basic rate i.e. exclusive of all excise duty/taxes/levies. 10. Seller: Seller shall, place sell order through the automated trading system by specifying quality parameters of the commodity as per the contract specifications mentioned above, Obligation Date (O), limit price and quantity in tradable lots For a sell order, limit price indicates the minimum price at which the seller is willing to sell.

10 10.3. Seller may modify his price from time to time or cancel the order before any order is matched with any Buyer as per process put in place by the NeML Failure by Seller to make available goods at the specified location within the specified time frame and as per specified quality and within specified quantity tolerance limits shall be treated as non-performance by Seller and shall attract non-performance compensation and action as decided and deemed fit by NeML. The NeML may, at its sole discretion, treat the trade as cancelled and may return the margin amount (without interest) deposited for the purpose of the trade to Buyer Seller needs to update the actual quantity delivered in the Fulfilment module available on upon completion of the delivery NeML will transfer the pay out to the seller based on the actual quantity delivered, once it is confirmed and accepted by buyer in Fulfilment module on on the same day of updation by buyer or latest by next working day 11. Buyer: Buyers shall, place order through the automated trading system. The Buyer would specify the limit price and quantity in tradable lots, obligation date and quality parameters. For a buy order, limit price indicates the maximum price at which the buyer is willing to buy Buyers shall have to ensure sufficient margin balance as prescribed by NeML, in the settlement account for execution of trade. The buying member shall ensure that funds towards such margin are transferred through payment gateway to the settlement bank account of NeML and allocate towards margin balances. In the event of shortage of funds, trade shall not be executed in the system Buyer can modify quantity and price quoted or may also withdraw any buy order before the order is matched /executed on the automated trading system After the matching of quotes, the Buyer shall bring the full payment on Obligation (O) date The Buyer shall have to arrange for taking delivery of the Lemon on O date through Transport agency The profile of the Buyer/Buyer s representative will have to be created by the Buyer Member in the Fulfilment module, prior to taking physical delivery of Lemon Buyer or the Buyer/ s authorized representative shall, on or before the O date or as may be permitted, along with necessary identity proof as per profile created in the Fulfillment module shall arrange vehicles for lifting of goods Copy of the documentary Proof (Photo identity) to be submitted by the Buyer/ s authorized representative at the time of taking delivery of the physical goods (Any one of the below) Passport

11 Driving License Voters Identity Card PAN card In ex-origin and ex-origin delivery modes, buyer has to confirm the quantity accepted and loaded in Fulfillment Module at after loading at the ex-origin. Once the loading activity is complete, FFRESH Market shall not be responsible for any delay, damage or loss that may cause for whatsoever reason after loading In DNL and DNL Direct delivery modes, buyer has to confirm the quantity delivered and accepted at the specified Location in Fulfillment Module at The Buyer may, before putting his order, send his request for release of the funds any time through the system put in place by NeML and the funds will be credited to the settlement account of the buying member, unless such amount is the amount due and payable by such Buyer/buying member Failure to bring in total obligation payable towards the purchase consideration shall attract nonperformance compensation as decided and deemed fit by NeML. A non-performance compensation of an amount equal to Quantity defaulted *Trade Price * Margin Percentage shall be recovered from the margin already lying with the NeML. Out of total buyer s margin forfeited, 0.25% of margin would be retained by NeML towards administrative costs and balance amount would be transferred to the Seller The Seller s responsibility shall cease once the goods leave the warehouse premises and no claim of any sort from the Buyer will be entertained thereafter. 12. Assaying: FFRESH Market allows two type of assaying norms as described below. Buyer/seller may choose any of the mode while placing buy/sell bid Quality Assured: It means that Quality is assured by the seller and seller will be responsible for delivering the goods as per parameters entered while placing bids In case Buyer chooses Quality Assured mode, it is deemed that buyer relies on the seller for delivering quality as agreed Buyer are free to verify the quality and quantity of the goods before accepting deliveries. Once Buyer confirms quantity and quality in fulfilment module of FFRESH, no claims or complaints relating to quantity or quality of the goods shall be entertained. However, if any dispute arises between

12 buyer and seller related to quality of Lemon, at the time of Loading or prior to Loading, party claiming objection can place third party assaying request to NeML NeML s empanelled assayer will check the quality as per the procedure put in place by NeML and confirm the quality. Results declared by assayer shall be binding on both the parties Party that loses the claim shall have to bear all the charges related to assaying Quality Certified: It means all the trades executed under Quality certified category will be compulsorily tested for its quality by empanelled assaying agency appointed by NeML If Goods passes the quality parameter as per the contract specifications, the same shall be treated as good delivery. In case seller s goods fail the quality parameter testing as per the contract specifications, the same shall be treated as bad delivery and seller will have to take the goods back Assayer will issue assaying certificate Results declared by Assaying agency will be binding on all the parties concerned. 13. Trade process: There will be multiple Sellers and multiple Buyers Trade can happen from Monday to Friday between 11 AM to 1 PM or as specified by NeML from time to time The order acceptance & matching would be in multiples of minimum tradable lot There is no automatic matching of orders for this contract. The participants can choose to match their preferred order by selection as per process put in place by the NeML The quantity in a buy or sell order may be partially matched subject to the minimum lot size Buyers and Sellers can modify their orders for quantity and price, upwards or downwards, any number of times till a matched trade happens. For quality and delivery parameters change, participants have to cancel open orders and place new orders Matching is on price time priority basis and subject to delivery and other quality parameters constraints The orders once entered on the platform would remain on the platform unless cancelled, modified or expired. Orders to the extent not matched can be cancelled at any time Open orders are automatically cancelled at the end of the trading session every day

13 14. Trade Fulfilment and settlement: Trading hours shall be on trading Day (T) between 11 pm to 6 pm or as decided by NeML from time to time All the trade positions shall result in compulsory delivery. i.e. the Buyer shall have to take delivery and the Seller shall have to give delivery of the physical commodity At the end of the day, Members (sellers and Buyers) would receive an accurate listing of all trades done during the day based on which the Member is obliged to pay/receive funds and/or commodities Buyer has to make full payment on Obligation (O) date by 11 am or earlier, before goods can be lifted. Margin shall not be adjusted against payment obligation but will be released on full payment Seller will have to arrange for the commodity at the Location defined on Obligation (O) or before Commodity payin and Loading of Lemon will happen on Obligation (O) subject to fund payin In ex-origin and ex-origin delivery modes, buyer has to confirm the quantity accepted and loaded in Fulfilment Module at after loading at the ex-origin. FFRESH Market shall not be responsible for any delay, damage or loss after loading In DNL and DNL Direct delivery modes, buyer has to confirm the quantity accepted and delivered at the specified Location in Fulfilment Module at Seller s responsibility will cease after commodity is delivered and confirmed by the buyer in Fulfilment module Fund Payout to seller would be based on actual quantity delivered and accepted and would be completed as per settlement calendar In case the quantity is short but within tolerance limits, balance amount with respect to short quantity will be returned to buyer as per settlement calendar Seller shall issue an invoice to the Buyer for the Traded price The amount due towards excise duty/levies/taxes & shortage/excess of quantity/grade premium & discount shall be settled at the Trade price and invoices shall be raised accordingly The time & activity flow for settlement as per Annexure Delivery and other charges at the time of Loading are to be borne by the Buyer.

14 15. Other terms & conditions Deposit/Withdrawal & Transfer of Funds: The registered members shall deposit funds for margin or full payment with the NCDEX e Markets Ltd before bidding by way of RTGS/NEFT or electronic fund transfer, well in advance in following settlement account of NeML: Bank Name Bank Account Name Account Number Branch Name IFSC Code HDFC Bank NCDEX e Markets Ltd Fort, Mumbai HDFC NeML would recognize only those funds balances which are available in the NeML settlement account The bidder should intimate NCDEX e Markets Ltd for the transfer of EMD/full payment through the fulfillment module on in the manner as prescribed by NCDEX e Markets Ltd. The bidder member may contact Customer Service Group of NCDEX e Markets Ltd on / Trade will be able to execute only if requisite EMD is available in the EMD Account of NCDEX e Markets Ltd Withdrawal requests for the free funds balance of the Member in the NeML settlement account can be placed online through the fulfilment module provided on FFRESH website The request for withdrawal of funds from the Settlement a/c will be processed in next available bank pay-out run. 16. Non-Repudiation Any quote placed using the participant s username and the password shall be an unconditional binding on the participant and the participant shall be solely and fully responsible for all the activities that occur under such username and password. The user is therefore advised to check the username and the password before the participation and is advised to get it changed frequently and not to reveal it to anyone so as to prevent misuse of the same. 17. NON-PERFORMANCE OF THE CONTRACT Buyer non-performance: Failure by Buyer to bring in the pay-in amount payable towards the purchase consideration within the specified time frame shall be treated as non-performance by Buyer

15 17.2. Seller non-performance: Failure by Seller to make available goods at the specified location within the specified time frame and as per specified quality and within specified quantity tolerance limits shall be treated as non-performance by Seller. Seller s failure to replace the goods within the specified timelines after the same are rejected on account of quality parameters shall also be treated as Seller non-performance. 18. Complaints & Dispute Redressal Any dispute arising between the Seller and the Buyer relating to any of the clauses of this contract or anything relating thereto including interpretation of any of the clauses of this contract shall be referred to NeML for resolution of the dispute. However such dispute shall be bought to the notice of the NeML latest by, on or before the close of market hours of the 2 nd day from the date of settlement (pay-in and pay-out) after which the NeML shall not entertain any reference in that regard NeML shall on a best efforts basis try and resolve the dispute by mutual settlement between the Buyer and the Seller and in case the dispute does not get resolve the matter shall be referred to a sole arbitrator appointed by NeML at its absolute discretion. The arbitration shall be conducted in accordance with the provisions of the Arbitration and Conciliation Act, 1996 including any amendments from time to time. The Language of arbitration shall be English and the venue of arbitration shall be Mumbai. The cost of any such arbitration shall be borne by the Buyer and the Seller or as decided by the arbitrator The courts situated at Mumbai to the exclusion of all other courts shall have jurisdiction to entertain the disputes relating hereto No quantity/quality related issues will be accepted once the Lemon has been Loaded and confirmed by buyer at the ex-origin and complains related to quantity or quality shall not be entertained. 19. ROLE OF NeML By entering into the bidding process, the buyer and the seller agree and accept that the role of NeML under this contract is only confined to providing of electronic trading

16 platform and carrying out activities which are necessary for settlement of trade obligation as defined in these terms and conditions and that NeML shall neither be made party to any dispute, suit, petition, application, arbitration or any other judicial or non-judicial disputes between buyer and seller relating to any of the terms and conditions of this contract including quality and quantity of the goods nor shall be held responsible or liable for any claims, losses or damages in any of the disputes arising between buyer and seller Both the buyer and seller agree to indemnify and keep NeML indemnified against any and all claims, losses and damages suffered by NeML in this regard. Annexure 2: T= Trade date, O= Obligation Date Settlement Calendar Ex-Origin and Ex-Origin Direct Delivery Modes ACTIVITY Day Time/Validity Trading day will be the day on orders are matched Funds Pay-in Cut-off O Date 10 AM T 11 Am to 1pm Commodity Lifting Cut-off O Date 3 PM (subject to Funds Pay-in) Funds Payout O Date or O +1 Date Non Performance Settlement O+1 Date 6 pm. 6 PM onwards if lifting completed before 6 pm, else 11 AM next working day Settlement Calendar DNL and DNL Direct Delivery Modes ACTIVITY Day Time/Validity Trading day shall be the day on which orders are matched Funds Pay-in Cut-off T O - 4 or T+ 1 Date, whichever is later. 11 Am to 1 pm 10 AM Commodity Delivery Cut-off O Date 11 PM (subject to Funds Pay-in) Funds Payout O Date or O +1 Date Non Performance Settlement O+1 Date 6 pm. 6 PM onwards if lifting completed before 6 pm, else 11 AM next working day

17 Annexure 3: Transportation Charges (in Rs.) Transportation charges shall be published on ffresh.neml.in and may be revised from time to time. Service charge will be as applicable over and above the indicated charges. Annexure 4: Assaying Charges: Sampling and testing (Assaying) charges applicable for testing of Lemon will be Rs (rupees three thousand) plus service tax per truck load of 16 MT. Additional Load will be charged as a complete truck Load. For e.g. for 16 Mt truck Load, Charges calculated as below: For 10 Mt Lot: Rs service Tax For Additional 6 Mt: Rs Service Tax