NCDEX Institute of Commodity Markets and Research
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NCDEX Institute of Commodity Markets and Research
Frequently Asked Questions

Membership
1 Are the course materials available for the proposed exam to be undertaken by the core dealer?
2 Are the memberships to be taken afresh for each of the products to be traded in NCDEX from time to time?
3 At what point of time one has to comply with the Net worth requirements?
4 Can one use the NSE terminal to trade in NCDEX?
5 Can we apply for the membership under the HUF account?
6 How could a new company submit the 3 years balance sheet?
7 How is the net worth calculated for a new subsidiary?
8 How NCDEX is different from other exchanges?
9 Is it a must that the individual should be a graduate?
10 Is NCDEX a separate legal corporate entity?
11 Is there any additional cost towards acquiring membership in addition to what has been specified in the application form?
12 Please indicate the permissible brokerage structure and brokerage pattern.
13 What are the benefits in futures trading in commodities?
14 What are the commodities identified for trading?
15 What are the member ship charges?
16 What are the trading hours?
17 What is the essential requirement for collateral?
18 What is the lock in period for the interest free security deposit?
19 What is the meaning of dominant promoter group?
20 What is your membership scrutiny process?
21 What should be the main objective clause in the Memorandum of Association to aid in trading in commodity futures?
22 When is the security deposit eligible for refund in case of surrender?
23 Whether a designated director in an entity having membership of BSE assume similar responsibility /designation in the new subsidiary formed for taking membership of NCDEX.
24 Whether exposure will be allowed against base capital and collateral?
25 Whether one can use the idle NSE terminal for trading on NCDEX?
26 Whether qualifying director in entity being member of NSE assume similar responsibility /designation in the new subsidiary formed for commodity exchange?
27 Whether Regulators, i.e., Forward Market Commission, levy any turnover fee?
28 Whether the networth of the holding company will be taken into consideration for the same?
29 Whether we can apply for the membership of NCDEX in the same name in which we are holding the membership of NSEIL?
30 Which are the other multi commodity exchanges in the country?
31 Who can become member of NCDEX?
32 Who will certify the various certificates, which are required to be certified by the auditor of the company?
33 Will the exchange plan to have market makers?
Sales Tax
1 Can sales tax exemptions be availed? How?
2 Does the trading / clearing member need to have sales tax registration?
3 Do the clients/participants need to have sales tax registration?
4 How should the client/participant move the commodities into the designated warehouses?
5 If a client/participant trades in more than one commodity having delivery centers in different States does he need sales tax registration in each of such states?
6 In which state sale tax registration is to be obtained?
7 What are the procedure for submission of the support documents /certificates / declarations for availing the sales tax exemptions?
8 When is the sales tax payable by the buyers?
9 Who is responsible for payment of sales tax?
Service Tax
1 How to get registration?
2 How to pay Service Tax?
3 In case of delayed payment, whether interest is to be paid?
4 Is it compulsory to register as a service provider?
5 On what basis service tax is payable - on the amount billed or received?
6 What are the records to be maintained by the service provider (member)?
7 What is Service Tax? How many services are covered?
8 What is the rate of Service Tax?
9 Whether registration should be done for each service provided by the service provider?
10 Who is liable to pay service tax?
Settlement
1 Are deliveries compulsory?
2 Can commodities be re-deposited in the warehouse after the validity period of the assayer's certificate?
3 How many warehouses would be there?
4 How will you ensure uniformity in delivered grades / varieties?
5 How would a buyer take physical delivery?
6 How would a seller get the electronic balance for the physical holdings?
7 How would contracts settle?
8 How would disputes be resolved?
9 How would the buyer give a declaration for re-sale in case of last point collection of tax?
10 How would the seller give an invoice to the buyer?
11 How would the settlement take place in commodity futures market?
12 How would you accredit warehouses?
13 Is NCDEX going to have its Clearing Corporation?
14 What happens to the sales tax?
15 What happens when the commodities reach the validity date?
16 What is the procedure for handling bad delivery / part delivery?
17 What would be the settlement period?
18 What would be transaction charges?
19 Whether the accredited warehouses would be dedicated warehouses?
20 Who maintains and the Settlement Guarantee Fund?
21 Who will be certifying / assaying agencies. Will they also give the time validity for the commodities certified?
22 Who would be the clearing bankers?
23 Who would be the depository participants?
24 Who would decide the warehousing charges?
25 Would additional margins be levied for deliverable positions?
26 Would commodities be accepted without assayer's certificate?
27 Would health checks and inventory verification be carried out?
28 Would there be any premium / rebates for the difference in quality
29 Would you be providing for deliveries?
Stamp Duty
1 Can a member pay stamp duty in states other than where the client is registered and trading?
2 Can a member pay stamp duty of all his clients at one location?
3 How is stamp duty applicable?
4 How is the Stamp Duty to be paid, Is it State Wise?
5 If Stamp Duty is applicable in two states, one where the Client is registered and the other i.e. the registered office then, Is he required to pay stamp duty at both places?
6 Where can a person verify the percentage of stamp duty applicable on futures contract?
Technology
1 Are VSATs compulsory?
2 Is there a facility of buy back of VSAT in case of surrender of membership?
3 When would the payment be made?
4 Which protocol is being used?
5 Who would provide the services?
6 Why is the same network of NSE not being considered?
7 Would the same technology infrastructure of NSE be used?
NCDEX Institute of Commodity Markets and Research