FAQ’s Commodity

1. How can I activate commodity segment for my trading account held with SSL?
 For activating commodity segment for your trading account, you need to give an online consent on
www.sbismart.com.
 Customer has to provide their PAN, GST number (if available), Select Income details from
drop down, Years of experience in Commodity trading (in years) and if they wish to opt for
Nominee.

 After entering PAN, it will check whether account is active and whether FNO segment is
enabled.

 After successful verification of PAN and accepting the terms and conditions, an OTP will be
sent on the mobile number and email id registered with us.
 After successful OTP verification, request to activate commodity trading will be received and the
process will be initiated.

2. After providing PAN, it is showing error as “Invalid PAN”. How to proceed?

 If error as “Invalid PAN” is received, kindly provide valid 10 digit PAN or confirm that status
of your account whether it is closed or active. You can contact our customer care team on
022-42273349/80/76.

3. After providing PAN, it is showing error as “FNO not enabled”. How to proceed?
 If error as “FNO not enabled” is received, this means that derivatives segment is not active
for your account. Commodity segment will be enabled online, only for those customers for
whom equity derivatives is already activated.

4. How to activate equity derivatives segment?

 You can give the request for activating equity derivatives segment for your account by
download and filling up the Segment Enablement form and couriering it to us at the below
mentioned address:
SBICAP Securities Ltd Sai Enclave, 8th Floor, Haryali Village,Behind Vikhroli BEST Depot,
Vikhroli (E) Mumbai 400 084.

5. I have not received OTP on my mobile number and email id. How to proceed?
 If you did not receive OTP, then confirm your mobile number and email id displayed on the screen. If
the mobile number and email id displayed is not a valid one, you can call our customer care team on
022-42273349/80/76 for further assistance.

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 6. How will I come to know that Commodity has been activated for my account?
 You will receive a confirmation call from our team and email stating that Commodity has been
activated for your account within 48 hours of placing your request.

7. Is it mandatory to submit income proof for activating derivatives account?

 Yes, you need to submit the income proof for the income details selected within 30 days of
commodity segment activation. Please find the list of valid documents accepted as income proof:
 Bank Account Statement for last 3 months
 Copy of Demat account holding statement (Holding should be 2 lakhs or more)
 Copy of Form 16
 Salary Slip of latest month
 Copy of ITR acknowledgement
 Copy of Annual Accounts
 Net worth Certificate

8. In which exchange trading in Commodity is allowed?

 Currently you can only trade in Multi Commodity Exchange of India Ltd. (MCX).
National Commodity and Derivative Exchange (NCDEX) segment is under development and will be
made live soon.

9. In which trading platforms can I use for trading in Commodities?

 You can place commodity trades only through EXE available for download on www.sbismart.com>>
Downloads>>Software>> SBISMART XPRESS (For Clients) or through Central Dealing Desk.

10. Do I need a separate user id and password to trade in Commodity?

 User id will be same as used to login to Web and Mobile app. Password for EXE would be different
from the one used to login to mobile app and website. For generating a new password for EXE login,
click on Forgot password to receive a new password on your registered email address or you can call
our customer care team on 022-42273349/80/76 for further assistance.

11. Can NRI’s open Commodity account with SSL?

 No, NRIs are not allowed to open Commodity Account.

12. Which Commodities can I trade in?

 As only MCX is active, following are the commodities you can actively trade in MCX.

Multi Commodity Exchange (MCX)

• Bullion: Gold and Silver

• Metals: Aluminium, Copper, Zinc etc.
• Oil and Oil Seed: Refined Soy Oil, Soy Bean etc.
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 • Energy: Brent crude oil, Crude oil, etc.
• Other commodities: Urad, Chana, Wheat, Guar Seed, Sugar, Potato etc.

13. What are the market timings for Commodity Trading?

Below are the market timings:

Commodity Market Time

Agricultural (Agri) 10:00 AM to 5:00 PM

Internationally link Agri (Cotton, CPO, SYOREF etc) 10:00 AM to 9:00 PM

Other Commodities (Gold, Silver, Crude etc) 10:00 AM to 11.30/11:55 PM

14. Are all Derivative (Futures & Options) contracts available for trading through SSL?
 No, due to probable illiquidity in far month contracts, only near mid-month contracts are available
for trading.

15. Which Products are available for trading in Commodity at SSL?

 Currently only NRML product is available for trading in Commodity at SSL. Intraday is not available.

16. Can I use my existing collaterals for trading in Commodity?

 Yes, you can use your existing collateral as margin for trading in Commodity.

17. Do I need to Lien funds for equity and funds for commodity separately?
 No, we are offering single margin across all equity , currency and commodities.

18. How do I Lien/Transfer funds from EXE?

 To Lien/transfer funds from EXE, Login to EXE with user id and password set for EXE. Click on Secure
URL’s>> Fund Lien.
After clicking on Fund Lien, it will redirect to the www.sbismart.com login page. Enter user id and
password for web to login and click on Fund Lien or Fund transfer to transfer funds for trading.

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 19. Till what time can I Lien funds for trading in commodity?
 The Lien/Unlien functionality will be available till 5pm. Post 5pm you can use the Fund transfer
option under Manage Funds for transferring funds and place trade in commodity. Fund transfer
option is available 24*7.

20. What margin will be charged for Commodity Trading?

 As we are allowing only NRML product, thus margin charged will be – Exchange define margin + Span
Margin + Extreme Loss margin

21. What are the account opening and brokerage charges for Commodity?
 There are no additional account opening charges for commodity. The brokerage charges are same as
applied for your FNO trades.

22. Who can open a commodities trading account with SSL?

 Our existing derivatives customers can avail Commodity trading facility through a one-time
registration process.

23. What is the minimum investment needed to trade in commodity futures & Options?

 The minimum margin depends on the Initial Margin required to trade in a Commodity. For instance if
client wants to trade in Gold (1kg lot) then the Initial Margin required is 5%-6% of the Contract Value
which comes to around Rs 1.60 lacs while if he chooses for Gold Guinia (8 gms) then the
requirement will be Rs. 2000/- approx . He can also opt for lower denominations available in
respective Commodity.

24. Explain how profit/loss is calculated?

 Profit /Loss will vary from Commodity as different Commodity has different Lots size:

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 25. Which commodity contracts are compulsory delivery contracts?

 Compulsory Delivery Contracts are as follows , the Delivery period varies from Commodity :
Commodity
Gold
Gold Mini
Gold Guinea
Gold Petal
Silver
Aluminium
Zinc
Cardomom
Castorseed
Pepper
Cotton
Menthaoil
CPO

26. How does settlement take place?

 Settlement of Margin shortage is reported on T day itself hence we will not allow the client to
initiate the extra position. Exchange charges Margin Shortage penalty which is 1% of the shortage
amount for first 3 times in a month & 5% of the shortage amount from the 4th time onwards in a
month. However only NRML product is available for trading in Commodity Market in which we will
initiate the trade only if client has sufficient margin as required by the Exchange.
Settlement of Mark to Market Profit /Loss is reported on T+1 Day. For instance client has initiated
the position in Gold (1kg) the margin required to initiate the position is approx. Rs 1.60 lacs, now if a
Client has initiated the buy position in One lot of Gold @ 31000 and if the market closes at 30900
then the client will incur the MTM Loss of Rs 10000/- the same has to collected from the client
within T+1 day.

27. What if I fail to close my position on expiry date?

Positions will be squared off before the Delivery period in the commodity which has compulsory
delivery, the intimation of the same will be provided by RMS to Dealing Desk to Client.

While some Commodity are Cash settled hence even if client does not square off the position on
Expiry Date it will be automatically Cash settled by the Exchange. Such Commodities are Crude Oil
/Crude Oil Mini, Copper /Copper Mini, Nickel/Nickel Mini, Natural Gas, Lead /Lead Mini.

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 28. Are there any circuit criteria for trading in Commodities?

Commodity Circuit Details

Gold The base price limit will be 3%. Whenever the base daily price limit is breached,
the relaxation will be allowed upto 6% without any cooling off period in the trade.
In case the daily price limit of 6% is also breached, then after a cooling off period
of 15 minutes, the daily price limit will be relaxed upto 9% In case price
movement in international markets is more than the maximum daily price limit
(currently 9%), the same may be further relaxed in steps of 3% beyond the
maximum permitted limit, and informed to the Regulator immediately.
Silver The base price limit will be 4%. Whenever the base daily price limit is breached,
the relaxation will be allowed upto 6% without any cooling off period in the trade.
In case the daily price limit of 6% is also breached, then after a cooling off period
of 15 minutes, the daily price limit will be relaxed upto 9%. In case price
movement in international markets is more than the maximum daily price limit
(currently 9%), the same may be further relaxed in steps of 3% beyond the
maximum permitted limit, and informed to the Regulator immediately.
Copper The base price limit will be 4%. Whenever the base daily price limit is breached,
the relaxation will be allowed upto 6% without any cooling off
period in the trade. In case the daily price limit of 6% is also breached, then after a
cooling off period of 15 minutes, the daily price limit will be relaxed upto 9%.
In case price movement in international markets is more than the maximum daily
price limit (i.e 9%),the same may be further relaxed in steps of 3% beyond the
maximum permitted limit, and informed
to the Regulator immediately.

Nickel The base price limit will be 4%. Whenever the base daily price limit is breached,
the relaxation will be allowed upto 6% without any cooling off period in the trade.
In case the daily p0rice limit of 6% is also breached, then after a cooling off period
of 15 minutes, the daily price limit will be relaxed upto 9%. In case price
movement in international markets is more than the maximum daily price limit
(currently 9%), the same may be further relaxed in steps of 3% informed to the
Regulator immediately
Lead The base price limit will be 4%. Whenever the base daily price limit is breached,
the relaxation will be allowed upto 6% without any cooling off period in the trade.
In case the daily price limit of 6% is also breached, then after a cooling off period
of 15 minutes, the daily price limit will be relaxed upto 9%. In case price
movement in international markets is more than the maximum daily price limit
(currently 9%), the same may be further relaxed in steps of 3%. informed to the
Regulator immediately.
Zinc The base price limit will be 4%. Whenever the base daily price limit is breached,
the relaxation will be allowed up to 6% without any cooling off period in the
trade. In case the daily price limit of 6% is also breached, then after a cooling off
period of 15 minutes, the daily price limit will be relaxed up to 9%. In case price
movement in international / local markets is more than the maximum daily price
limit (currently 9%), the same may be further relaxed in steps of 3%-and inform
the Regulator immediately.

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 Aluminium The base price limit will be 4%. Whenever the base daily price limit is breached,
the relaxation will be allowed up to 6% without any cooling off period in the
trade. In case the daily price limit of 6% is also breached, then after a cooling off
period of 15 minutes, the daily price limit will be relaxed up to 9%. In case price
movement in international / local markets is more than the maximum daily price
limit (currently 9%), the same may be further relaxed in steps of 3% and inform
the Regulator immediately.
Crude Oil The base price limit will be 4%. Whenever the base daily price limit is breached,
the relaxation will be allowed upto 6% without any cooling off period in the trade.
In case the daily price limit of 6% is also breached, then after a cooling off period
of 15 minutes, the daily price limit will be relaxed upto 9%. In case price
movement in international markets is more than the maximum daily price limit
(currently 9%), the same may be further relaxed in steps of 3%.and informed to
the Regulator immediately.
Natural Gas The base price limit will be 4%. Whenever the base daily price limit is breached,
the relaxation will be allowed upto 6% without any cooling off period in the trade.
In case the daily price limit of 6% is also breached, then after a cooling off period
of 15 minutes, the daily price limit will be relaxed upto 9% In case price
movement in international markets is more than the maximum daily price limit
(currently 9%), the same may be further relaxed in steps of 3% and informed to
the regulator immediately

29. What is the different type of charges that would be levied to me after the trade?

 The different types of charges are as follows:

Types of charges % of Charges

Turnover Tax (levied by exchanges) 0.0026% on the Total Turnover

Stamp Duty (Varies from State to State) 0.0015% for Maharashtra

Commodity Transaction Tax 0.01% on Selling Value

30. Will I receive trade confirmations and margin shortfall intimations?

 Yes, you will receive Trade Confirmation SMS on your registered mobile number with us and also
you will receive margin shortfall emails on your registered email address with us.

31. Where can I check the different reports for commodity segment?

To view the commodity reports, login to www.sbismart.com by using your website credentials. To
view all the reports related to commodity, click on Customer Service>> Back office reports

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 32. Can I use my Equity Sales Proceed to trade in Commodity Derivatives Account?

 Yes, you can use your equity collaterals to trade in commodity derivatives.

33. What is password validity or expiry period or change password process for trading platform?
 The password set by you will expire in 90 days. After 90 days you will get an intimation to change
your password.

34. How can I change my password for EXE?

 To change your password, login to EXE and click on File>>Change password.

35. Where I can see required margin file/details?

 To view the margin file related to MCX, login to www.sbismart.com. Under Downloads>>Margin
file>>MCX click on the download option.

36. Where I can check my Contract Note / Trade Reports?

 To view the commodity reports, login to www.sbismart.com by using your website credentials.
Click on Customer Service>> Back office reports to view Contract note/Trade reports.

37. Where do I contact incase of any queries? (Phone and email)?

 For any queries related to commodity trading, you can call us on 022-42273349/80/76 or you can
write to us on [email protected]

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