Gold Petal Presentation

8/8/2019 Gold Petal Presentation

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MCX is a fully electronic multi commodity futures exchange with permanent recognition

from Govt. of India.

Live operations since November 10, 2003

Average Daily Turnover (In Month of Nov 2010)Rs. Crores 42384 (US9.58 Bn$)

Highest Daily Turnover Rs 61368.73 Crores (US$ 13.78 Bn) 10th Nov,10

Highest Daily Turnover GOLDRs. 23301 Crores ( US$ 5.04 Bn) - 27th Nov 09

MCX : An Overview

Highest Daily Turnover SILVER - Rs. 25435.10 Crores (US$ 5.71 Bn)- 10th

Nov,10

Highest Daily Turnover CRUDEOIL-Rs.10971.23Crores(US$ 2.37Bn) - 18thAug 10

Operations from 650+ centers with over 1900+ members & 18000+ Trading Terminals

(TWS)

Among the leading commodity exchanges globally (in terms of contracts traded)

No. 1 in Silver futures trading

No.3 in Gold and Crude Oil futures trading


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MCX Growth Story

16,000

19,000

22,000

25,000

28,00031,000

34,000

37,000

40,000

43,000

46,000

in

Rs.crores

4,000

7,000

10,000

13,000

Mar-07

Apr-07

May-07

Jun-07

Jul-07

Au

-07

Se

-07

Oct-07

Nov-07

Dec-07

Jan-08

Feb-08

Mar-08

A

r-08

Ma

-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Ju;ly-09

Aug-09

Sep-09

Oct-09

Nov-09

Dec-09

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Aug-10

Sep-10

Oct-10

Valu

e


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MCX Record Delivery

Highest Delivery in Gold 4898 kgs

Highest Delivery in Gold Mini 1244 kgs

Highest Delivery in Silver 1,41,810 kgs


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Gold Average Daily Turnover

6000

8000

10000

12000

14000

einRs.

Crores

0

2000

4000Valu


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Features of Gold petal

The Worlds first commodity exchange to launch 1gm Gold petal contract

Physical delivery available in multiple of 8gm, delivery possible in demat orphysical form

Maximum duration to trade Trade timing 10.00am to 11.55pm

ur ty 999 approve co n

No Vaulting charges

Absolute appreciation in value for gold

Lowest Transaction cost


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Gold Petal

Quote 1 gms

Contract Specifications

+/- Rs. 1/tick


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Contract Specifications GOLD Petal (1gms)

GOLD petal (1gram)

Contract Months January to December (monthly contract)

Expiry Date Last day of the contract expiry month

Trading Unit 1 Gram

Quotation 1 Gram

Price quote Ex-Ahmedabad (inclusive of all taxes and levies relating to import duty, customs,but excluding Sales Tax / VAT, any other additional tax or surcharge on sales tax,local taxes and octroi)

Maximum order size 10 kg

Tick size Re. 1

Daily Price Limit 3%

n t a a r g n 4%

Tender period 5 preceding days before the contract expiry month.

Delivery Period 1st working day after the contract expiry

Delivery period margin 25% on marked quantity.

Delivery Unit In multiples of 8 grams

Delivery logic Compulsory

Delivery Center Group 4 Securitas at Ahmedabad and at additional delivery centers at New Delhi,Mumbai, Hyderabad, Bangalore, Chennai and Kolkata.

Quality Specification 999 purity, It should be serially numbered Gold petal supplied by LBMA approvedsuppliers or other suppliers as may be approved by MCX, to be submittedalong with suppliers quality certificate

Due Date Rate Calculation Exchange shall announce the DDR based on the Ahmedabad Spot price for Gold(10gms) polled on the last day of the expiry of this Gold petal contract by around5.00pm, said spot price will be converted for 1gms Gold petal (Gold spot price per

10 gms X 1/10) and Rs. 200/- shall be added as making charges per Gold Guinea(8gms) No trading shall be allowed after the declaration of DDR.


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USP of MCX Gold petal (1gms) contract

Features MCX Petal Others

Delivery Physical delivery on

accumulation of 8gms

Physical delivery not possible OR

on accumulation of 1000 units i.e.

1kg

Purity Purity 999 LBMA Purity 995 LBMA Approved

pprove

Timing 10.00am to 11.55pm 9.15am to 3.30pm

Demat Delivery can be in Physical

or demat form

Compulsory

Investment in

Gold

100% 90% to 100%


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USP of MCX Gold Guinea (8gms) contract

Features MCX Gold Guinea

(8gms. Contract)

Others

Pricing 2-3% above Import Parity 10-12% above ImportParity

Buy/Sell Offers better liquidity ie. Both Only one way sell quotes

quo es uy se quo es o ere prov e

Quality London Bullion Market

Association (LBMA) approved,

with tamperproof packing

No guarantee on quality

in Physical markets

Impact cost ascompared to

Jewellers

Ability to buy/sell at lower impactcost

Difference in Bid/Askquotes of around 100-

200 Rs


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No Vaulting Charges


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Delivery Procedure

DELIVER LOGIC: -COMPULSORY DELIVERY Any seller having open positionon the expiry date fails to deliver then a penalty of 6.5% shall be imposed.

Tender Period: 5 preceding days before the contract expiry month.

Pay-in of Commodities (Delivery by seller member): E+1 basis by 5.00 p.m.except Saturdays, Sundays and Trading Holidays

- . . .

Pay- out of Funds: E+2 working days after 2.00 p.m.

Pay-out of Commodities (Delivery to Buyer Member): E+2 working days by5.00 p.m.


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Delivery Procedure

Close out of outstanding positions: All outstanding positions on the expiry ofcontract 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 the Expiry day of the contractmonth. This is calculated based on the Ahmedabad Spot price for Gold (10gms)

. ,

said spot price will be converted for 1gms Gold petal (Gold spot price per 10 gmsX 1/10) and Rs. 200/- making charges per 8gm Gold Guinea

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 tobe borne by the Buyer.


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Odd Lot Treatment

If buyer is in odd lot, it will be treated as buyer default, and the buyer will bepenalised.

If seller is in odd lot, it will be treated as seller default, and the seller will bepenalised.


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Delivery Procedure

## IN CASE OF FAILURE TO TAKE OR MAKE DELIVERY BY ANY OF THEPARTY A PENALTY OF 2.5% IS LEVIED ON THE DEFAULTINGPARTY.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 administrativecharges

.

Demat form the buyer get in Demat. If sellers produce in physical form thebuyer get in physical form.

VAT IN AHMEDABAD IS 1%


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Thank You

MCX is Indias No. 1 commodity exchange. Source: FMC website (www.fmc.gov.in) based on turnover in terms of value for FY 07

Disclaimer : Multi Commodity Exchange of India Limited proposes, subject to receipt of requisite approvals, market conditions and other considerations, to

make an initial public offer of its equity shares and has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India

(SEBI). The DRHP is available on SEBI website at www.sebi.gov.in as well as on the websites of the book running lead managers at www.dspml.com,

www.citibank.co.in , www.jmfinancial.in, www.kotak.com and www.enam.com. Investors should note that investment in equity shares involves a high

degree of risk and for details relating to the same, see the section titled Risk Factors of the aforementioned offer document.

Gold Petal Presentation

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