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 Do the clients/participants need to have sales tax registration?
3 Does the trading / clearing member 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?


Membership
1 Are the course materials available for the proposed exam to be undertaken by the core dealer? Close   Top
Ans. The course module and the study materials is being complied and the same will be made available on our website. The core dealer is expected to pass the exam on or before the date stipulated by NCDEX.
2 Are the memberships to be taken afresh for each of the products to be traded in NCDEX from time to time? Close   Top
Ans. No, the membership availed at the first instance is composite one and will be valid for all the products which are to be traded on NCDEX.
3 At what point of time one has to comply with the Net worth requirements? Close   Top
Ans. Upon the provisional admission as NCDEX member and being advised on the same by NCDEX, the prospective members are required to comply with the networth requirements in 2-3 weeks time.
4 Can one use the NSE terminal to trade in NCDEX? Close   Top
Ans. Separate VSat connectivity is required.
5 Can we apply for the membership under the HUF account? Close   Top
Ans. No, HUF is currently not permitted for NCDEX membership.
6 How could a new company submit the 3 years balance sheet? Close   Top
Ans. In case of newly formed companies, only current balance sheet needs to be submitted.
7 How is the net worth calculated for a new subsidiary? Close   Top
Ans. Net worth of the new entity should be Rs 50 lacs. Please follow the procedure explained in detail in Annexure C-1A of the application form to calculate the networth.
8 How NCDEX is different from other exchanges? Close   Top
Ans. NCDEX is a professionally managed, nation wide, on-line multi-commodity exchange promoted by ICICI Bank Ltd, National Bank for Agriculture and Rural Development (NABARD), Life Insurance Corporation of India (LIC), and National Stock Exchange (NSE). NCDEX is a technology driven de-mutualised commodity exchange with an independent board of directors and professionals not having any vested interest in commodity markets. It is committed to provide a world class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by the best global practices of professionalism and transparency. The four institutional promoters of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nation wide reach, technology and risk management skills.
9 Is it a must that the individual should be a graduate? Close   Top
Ans. It is desirable, however, we will consider waiving the same in case of persons having adequate experience in commodity market, financial markets.
10 Is NCDEX a separate legal corporate entity? Close   Top
Ans. National Commodity and Derivatives Exchange Ltd (NCDEX) is a public limited company registered under The Companies Act, 1956 with the Registrar of Companies, Maharashtra in Mumbai on April 23,2003. The registration no of NCDEX is U51909 MH 2003 PLC 140116
11 Is there any additional cost towards acquiring membership in addition to what has been specified in the application form? Close   Top
Ans. There are no additional costs other than what is stated in the application form.
12 Please indicate the permissible brokerage structure and brokerage pattern. Close   Top
Ans. The exchange does not stipulate any directives in this regard and it is free to be bilaterally decided between client and member of the exchange.
13 What are the benefits in futures trading in commodities? Close   Top
Ans. Futures trading in commodities results in transparent and fair price discovery on account of large scale participations of entities associated with different value chains and reflects views and expectations of wider section of people related to that commodities. This also provides effective platform for price risk management for all segments of players ranging from the producers, the traders, processors, exporters/importers and the end users of the commodity. The trading on futures contract on our platform will be facilitated on an online platform for market participants to trade in a wide range of commodity derivatives driven by the best global practices of professionalism and transparencies. We have provided with more details on the entire gamut of commodity trading in India in general and on NCDEX in particular in our website under "Presentations". Please visit our website www.ncdex.com.
14 What are the commodities identified for trading? Close   Top
Ans. Subject to Forwards Market Commission approval, 9 commodities, viz, Gold, Silver, Cotton, Soyabean, Soyaoil, Rape/Mustardseed, Rape/Mustard oil, Crude Palm Oil and RBD Palmolein are the commodities that will be traded in the first phase. NCDEX proposes to trade in all the major commodities approved by FMC.
15 What are the member ship charges? Close   Top
Ans. For trading cum clearing member (TCM) the criteria is as follows: Net worth of Rs 50 lacs Interest free deposit of Rs 15 lacs towards base capital Collateral deposit of Rs 15 lacs in form of bank guarantees, fixed deposit. GOI securities.
16 What are the trading hours? Close   Top
Ans. The trade timings of the exchange are 10.00 a.m. to 4.00 p.m. It is also proposed to have after hours trading also.
17 What is the essential requirement for collateral? Close   Top
Ans. Collateral security could be in the form of bank guarantee, RBI Bonds, fixed deposits and Government of India Securities. These certificates have to be deposited with the NCDEX and the same will be refunded on relinquishment of the membership.
18 What is the lock in period for the interest free security deposit? Close   Top
Ans. The lock in period for the interest free security deposit fee is three years and three months.
19 What is the meaning of dominant promoter group? Close   Top
Ans. The dominant promoter group stipulation is applicable in case of partnership firms, private limited companies and unlisted public companies. As per this stipulation, a group of not more than 4 individuals (who directly / indirectly hold more than 51% of capital in the firm / company) need to be identified as the key promoters of the entity. This exercise is an effort by NCDEX to identify and understand the individuals, who are the driving forces of the entities applying for membership on NCDEX
20 What is your membership scrutiny process? Close   Top
Ans. The membership forms will be processed at our end and in case of any additional information, the same will be called for. If found in order, the applicants will be subsequently called for personal interaction with the membership committee of NCDEX. Successful applicants will be intimated by NCDEX.
21 What should be the main objective clause in the Memorandum of Association to aid in trading in commodity futures? Close   Top
Ans. The main objective clause to be inserted in the Memorandum of Association is : To carry on the business of trading in agricultural products, metals including precious metals, precious stones, diamonds, petroleum and energy products and all other commodities and securities, in spot markets and in futures and all kinds of derivatives of all the above commodities and securities. To carry on business as brokers, sub brokers, market makers, arbitrageurs, investors and/or hedgers in agricultural products, metals including precious metals, precious stones, diamonds, petroleum and energy products and all other commodities and securities, in spot markets and in futures and all kinds of derivatives of all the above commodities and securities permitted under the laws of India. To become members and participate in trading, settlement and other activities of commodity exchange/s (including national multi - commodity exchange/s) facilitating, for itself or for clients, trades and clearing/settlement of trades in spots, in futures and in derivatives of all the above commodities permitted under the laws of India.
22 When is the security deposit eligible for refund in case of surrender? Close   Top
Ans. The interest free security deposit will be refunded to the TCM, when they express their intention to relinquish their membership rights after a cooling period of 6-12 months of surrendering the membership rights. The minimum lock in period for membership is three years and three months.
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. Close   Top
Ans. While taking membership of BSE the designated directors have executed undertaking to following effect "We hereby undertake that on name of corporate entity starting business in the Stock Exchange, Bombay, we shall cease to do any other business or render professional services in any other capacity or work as an employee". In view of undertaking as above it is suggested that designated director on entitiy having membership of BSE does not assume responsibility as qualifying director in corporate entity seeking membership of NCDEX. However entity having membership of BSE can seek membership of NCDEX through subsidiary route.
24 Whether exposure will be allowed against base capital and collateral? Close   Top
Ans. Exposure will be permitted against base capital and collateral however a portion of the same will utilized for formation of Settlement Guarantee Fund
25 Whether one can use the idle NSE terminal for trading on NCDEX? Close   Top
Ans. One can use the dish and other hardware with concurrence of NSE and service provider.
26 Whether qualifying director in entity being member of NSE assume similar responsibility /designation in the new subsidiary formed for commodity exchange? Close   Top
Ans. Yes, in case of NSE there is no such bar.
27 Whether Regulators, i.e., Forward Market Commission, levy any turnover fee? Close   Top
Ans. Currently, there is no provision to charge any fee.
28 Whether the networth of the holding company will be taken into consideration for the same? Close   Top
Ans. No, the networth of the holding company is not taken into consideration for reckoning the networth of the entity applying for membership.
29 Whether we can apply for the membership of NCDEX in the same name in which we are holding the membership of NSEIL? Close   Top
Ans. The existing stock broking company cannot apply in the same and need to form separate entity for seeking membership of NCDEX.
30 Which are the other multi commodity exchanges in the country? Close   Top
Ans. Forward Markets Commission has accorded in principle approval for the following national level multi commodity exchanges in the country apart from NCDEX National Board of Trade Multi Commodity Exchange of India National Commodity & Derivatives Exchange of India Ltd
31 Who can become member of NCDEX? Close   Top
Ans. An individual, partnership firm, Private limited company, public limited Company, co-operative societies are eligible to become members of NCDEX.
32 Who will certify the various certificates, which are required to be certified by the auditor of the company? Close   Top
Ans. The certificate and statements need to be certified by a Qualified Chartered Accountant who has audited the same.
33 Will the exchange plan to have market makers? Close   Top
Ans. We are in dialogue with large scale players in commodity market for voluntary market making like in case of gold and silver major bullion importing banks have agreed fro market making. Similarly large commodity trading houses have agreed to do market making in commodities they are dealing in.
Sales Tax
1 Can sales tax exemptions be availed? How? Close   Top
Ans. Yes. The participants can avail of the exemptions, if any entitled to them. The buyers will have to indicate their ability to give supporting documents / certificates / declarations prescribed under the respective State sales tax laws at the time of giving requests for taking delivery and will have to be submitted before the supplemental settlement day. Submission of incomplete or invalid declarations / certificates would amount to defaults on the part of the seller.
2 Do the clients/participants need to have sales tax registration? Close   Top
Ans. Those clients who trade with the intention of taking/giving delivery should have sales tax registration before settlement of the delivery based trades. Deliveries given by clients/participants who are not registered under the relevant State sales tax law or whose registration is not valid on the date of sale / delivery, will amount to defaults.
3 Does the trading / clearing member need to have sales tax registration? Close   Top
Ans. No. The member need not have a sales tax registration. However, if the member wants to undertake proprietary trading and take the delivery of the commodities, then he needs to have sales tax registration under the provisions of the relevant State sales tax law.
4 How should the client/participant move the commodities into the designated warehouses? Close   Top
Ans. The client / participant are responsible to move the commodities from their warehouse into the warehouses designated by the Exchange. Such movement may be by way of stock transfers from place outside the State for which the client / participant will be responsible for issuance of certificate in Form F under the Central Sales Tax Act, 1956 to his dispatching branch. The client / participant will also be responsible for payment of octroi, entry tax, cess, etc. on entry of the goods into the local areas in the State where the designated warehouse is located and for obtaining check post declaration forms from the sales tax department. If the client / participant move the commodities from another State pursuant to a fructified sale transaction, there could be liability for payment of Central sales tax in the State from where the inter-State movement of the commodities commences. The client/participant will be responsible for the payment of the Central sales tax in such cases. The clients/participants are being advised to move the commodities into the designated warehouses well in advance and ensure compliance of provisions of law.
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? Close   Top
Ans. Yes, the client/participant will have to register in all those states where the delivery center for the commodities is located.
6 In which state sale tax registration is to be obtained? Close   Top
Ans. Sales tax registration is to be obtained in the State where the delivery center for the commodity is located.
7 What are the procedure for submission of the support documents /certificates / declarations for availing the sales tax exemptions? Close   Top
Ans. At the time of supplemental settlement the buyers will have to confirm their eligibility for availing exemption from payment of sales tax. The party will have to physically deliver the support documents to their respective clearing members within 5 business days and the clearing members will forward the same to the relevant parties within the next two days thereafter.
8 When is the sales tax payable by the buyers? Close   Top
Ans. On the day of settlement the sales tax incidence on the trades settled would be notified to the clearing members, which will be settled on the supplemental settlement day, which is normally two (2) days after the actual settlement day.
9 Who is responsible for payment of sales tax? Close   Top
Ans. It is obligatory on the part of the seller to collect the sales tax from the buyer and deposit the same into the Government Treasury. However, in the case of commodities which are liable to tax on purchases only and not on sales, the buyer will have to discharge the liability for payment of tax. In all other cases, payment of taxes will be the sole responsibility of the seller.
Service Tax
1 How to get registration? Close   Top
Ans. Get in touch with the relevant department of Govt. who will register and issue the service tax registration no. and certificate.
2 How to pay Service Tax? Close   Top
Ans. The Service Tax shall be paid in the specified branches of designated banks.
3 In case of delayed payment, whether interest is to be paid? Close   Top
Ans. In case of delay in payment of service tax, interest @1.25% per month or part thereof should be paid which may vary and will have to be confirmed with the relevant department.
4 Is it compulsory to register as a service provider? Close   Top
Ans. All the persons providing taxable services shall register with the Central Excise Department of the concerned jurisdiction (Local Area). The registration shall be for each premise where billing is done. Only one registration is needed even if the service is provided in more than one premise provided the bills are raised in one place. If bills are raised in different premises, the registration should be obtained separately for each such premise where billing is done.
5 On what basis service tax is payable - on the amount billed or received? Close   Top
Ans. Service Tax is payable on the amount actually received i.e. Total Amount received by the Member.
6 What are the records to be maintained by the service provider (member)? Close   Top
Ans. No specific mention is made in the Act. However, records like invoice copy and books of account which constitute sufficient evidence for calculation of service tax liability and payment of service tax shall be maintained.
7 What is Service Tax? How many services are covered? Close   Top
Ans. Service Tax is a form of indirect tax imposed by the Government on specified services called 'taxable services'. Presently it covers 58 services (for detailed information the Member will have to Contact the local Services Tax Office).
8 What is the rate of Service Tax? Close   Top
Ans. 12.5% on the value of taxable service (i.e.) gross amount received by the service tax provider (member) for the services rendered by Member to the Client.
9 Whether registration should be done for each service provided by the service provider? Close   Top
Ans. No. Only one registration is required even if the service provider provides more than one taxable service.
10 Who is liable to pay service tax? Close   Top
Ans. The service tax shall be paid by the service provider (ie. the Member)
Settlement
1 Are deliveries compulsory? Close   Top
Ans. No. The buyer and the seller have to express their intention for delivery. Deliveries would be matched randomly at client level. Contracts not assigned delivery would be settled in cash
2 Can commodities be re-deposited in the warehouse after the validity period of the assayer's certificate? Close   Top
Ans. Yes, provided they are re-validated by the assayer.
3 How many warehouses would be there? Close   Top
Ans. To start with, we are looking at only one delivery center for each commodity and only one warehouse in that location. Over a period of time, we would be adding warehouses to the list.
4 How will you ensure uniformity in delivered grades / varieties? Close   Top
Ans. The exchange will specify, in its contract description, the particular grade / variety of a commodity that is being offered for trade. A range will be specified for all the properties and only those grades / varieties, which fall within the range, will be accepted for delivery. In case the properties fall within the range, but differ from the benchmark specifications, the Exchange will specify a premium / rebate
5 How would a buyer take physical delivery? Close   Top
Ans. Any buyer intending to take physicals would have to put a request to its Depository Participant, who would pass on the same to the registrar and the warehouse. On a specified day, the buyer would go to the warehouse and pick up the physicals.
6 How would a seller get the electronic balance for the physical holdings? Close   Top
Ans. The seller intending to make delivery would have to take the commodities to the designated warehouse. These commodities would have to be assayed by the Exchange specified assayer. The commodities would have to meet the contract specifications with allowed variances. If the commodities meet the specifications, the warehouse would accept them. Warehouses would then ensure updating the receipt in the depository system giving a credit in the depositor's electronic account.
7 How would contracts settle? Close   Top
Ans. All open contracts not intended for delivery and non-deliverable positions at client level would be cash settled.
8 How would disputes be resolved? Close   Top
Ans. Any disputes in regard to the quality / quantity will be referred to the Arbitration committee set up for the purpose.
9 How would the buyer give a declaration for re-sale in case of last point collection of tax? Close   Top
Ans. The buyer intending to take delivery would give declaration for re-sale at the time of giving intention for delivery. Accordingly the seller would issue the invoice, exclusive of sales tax. The declaration form duly signed by the buyer would be forwarded through the buyer's clearing member to the seller's clearing member within a specified time after pay-in and payout.
10 How would the seller give an invoice to the buyer? Close   Top
Ans. The seller would give the invoice to its clearing member, who would courier, the same to the buyer's clearing member.
11 How would the settlement take place in commodity futures market? Close   Top
Ans. For open positions on the expiry day of the contract, the buyer and the seller can give intentions for delivery. Deliveries would take place in electronic form. All other positions would be settled in cash.
12 How would you accredit warehouses? Close   Top
Ans. NCDEX would prescribe the accreditation norms, comprising of financial and technical parameters, which would have to be met by the warehouses. NCDEX would take assayer's/Structural Engineer's certificate confirming the compliance of the technical norms by the warehouses.
13 Is NCDEX going to have its Clearing Corporation? Close   Top
Ans. NCDEX has tied-up with NCCL for clearing the trades
14 What happens to the sales tax? Close   Top
Ans. Prices quoted for the futures contracts would be basis warehouse and exclusive of sales tax applicable at the delivery center. For contracts materializing into deliveries, sales tax would be added to the settlement amount. The sales tax would be settled on the specified day after the payout.
15 What happens when the commodities reach the validity date? Close   Top
Ans. Those commodities will not be available for delivery on the clearing corporation. Hence the deliverable electronic balance would be automatically reduced. Warehouse would place the commodities in a separate area, indicating that they are not available for electronic trading.
16 What is the procedure for handling bad delivery / part delivery? Close   Top
Ans. Partial delivery as well as bad delivery would be considered as default. Penalties would be levied.
17 What would be the settlement period? Close   Top
Ans. All contracts settling in cash would be settled on the following day after the contract expiry date. All contracts materializing into deliveries would settle in a period of 2-7 days after the expiry. The exact settlement day would be specified for each commodity.
18 What would be transaction charges? Close   Top
Ans. Rs.6/- per Rs100, 000/- i.e. 0.006% of the trade value.
19 Whether the accredited warehouses would be dedicated warehouses? Close   Top
Ans. In case of grains/seeds, warehouses would earmark a definite storage capacity within the warehouse premises for members of NCDEX, while in case of oils, specified tankers would be earmarked for NCDEX participants.
20 Who maintains and the Settlement Guarantee Fund? Close   Top
Ans. Settlement guarantee fund would be maintained and managed by NCDEX.
21 Who will be certifying / assaying agencies. Will they also give the time validity for the commodities certified? Close   Top
Ans. We are looking at following assayers: SGS India Pvt. Limited, Geo-Chem Laboratories, Dr. Amin Superintendents & Surveyors Pvt Ltd., Calib Brett and Stewart. Only certificates given by specified assayers by NCDEX will be accepted. All the certificates issued will have time validity
22 Who would be the clearing bankers? Close   Top
Ans. Following banks have agreed to act as clearing bankers: Canara Bank HDFC Bank ICICI Bank UTI Bank
23 Who would be the depository participants? Close   Top
Ans. We have approached Bank of Baroda Canara Bank Global Trust Bank HDFC Bank ICICI Bank IDBI Bank Indusind Bank UTI Bank
24 Who would decide the warehousing charges? Close   Top
Ans. The warehouse concerned would decide the warehousing charges. However the warehouse charges would be made available on our website
25 Would additional margins be levied for deliverable positions? Close   Top
Ans. Yes
26 Would commodities be accepted without assayer's certificate? Close   Top
Ans. No
27 Would health checks and inventory verification be carried out? Close   Top
Ans. Yes. The assayers and or other experts on behalf of NCDEX would carry out surprise health checks and inventory verification.
28 Would there be any premium / rebates for the difference in quality Close   Top
Ans. Yes. These would be pre-defined and made available on the website. The settlement obligation would be impacted on account of the premium / rebates in case of deliverable positions. The parameters which would be considered for premium / rebate computation as well as the methodology would be specified by NCDEX
29 Would you be providing for deliveries? Close   Top
Ans. Yes
Stamp Duty
1 Can a member pay stamp duty in states other than where the client is registered and trading? Close   Top
Ans. No, He has to pay stamp duty in the state where the client is registered and is trading, irrespective` of the where the registered office of the member is located and contract notes are printed.
2 Can a member pay stamp duty of all his clients at one location? Close   Top
Ans. No, he has to pay in individual states depending on where his client is trading. E.g.: If the Client is trading in Mumbai, and the main office is based in Delhi from where the Contract Notes are printed, then Stamp duty is applicable according the Maharashtra Stamp Duty Act for the particular Client and is to be paid in the State of Maharashtra.
3 How is stamp duty applicable? Close   Top
Ans. Stamp Duty is applicable on the Value of the Contract note and is calculated on the percentage specified by the stamp duty authority of the relevant state.
4 How is the Stamp Duty to be paid, Is it State Wise? Close   Top
Ans. Yes, it is to be paid state wise as all state govt. has specified certain value of stamp duty to be paid for futures contracts.
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? Close   Top
Ans. No, he has to pay stamp duty whichever is higher and pay in the state which has higher stamp duty.
6 Where can a person verify the percentage of stamp duty applicable on futures contract? Close   Top
Ans. He has to check with the relevant stamp duty authorities in the Stamp duty office of the relevant state.
Technology
1 Are VSATs compulsory? Close   Top
Ans. No. NCDEX is proposing an option of either two lease lines or one lease line backed by V-SAT
2 Is there a facility of buy back of VSAT in case of surrender of membership? Close   Top
Ans. Yes, the service provider would buy back the VSAT at a price, which would be dependent on the year of surrender and the condition in which it is surrendered. The rates for buy back would be specified.
3 When would the payment be made? Close   Top
Ans. The member would have to directly make the payment to the vendor. As soon as NCDEX confirms the membership, NCDEX would intimate the service provider. The member would approach the service provider, along with the one time payment.
4 Which protocol is being used? Close   Top
Ans. We would be operating on TCP / IP protocol
5 Who would provide the services? Close   Top
Ans. NCDEX has tied up with HCL Comnet for VSAT services. The services would be provided as a package deal at the price agreed. The cost approximately works out to be Rs.140, 000/- in year 1. The total cost over a period of 5 years works out to be approx. Rs200, 000/-. The member would directly deal with the vendor. However, NCDEX would monitor the service levels of the vendor. Member is free to approach NCDEX for problems faced and NCDEX would intervene.
6 Why is the same network of NSE not being considered? Close   Top
Ans. There is no additional capacity available. As the operations are time critical, we thought it prudent to have a separate network
7 Would the same technology infrastructure of NSE be used? Close   Top
Ans. No