Contract Specifications of Gold
Symbol GOLD
Description GOLDMMMYY
Contract Listing Contracts are available as per the Contract Launch
Calendar.
Contract Start Day 16th day of contract launch month. If 16th day is a holiday
then the following working day.
Last Trading Day 5th day of contract expiry month. If 5th day is a holiday then
preceding working day.
Trading
Trading Period Mondays through Friday
Trading Session Monday to Friday: 9.00 a.m. to 11.30 / 11.55 p.m.
Trading Unit 1 kg
Quotation/ Base Value 10 grams
Price Quote Ex-Ahmedabad (inclusive of all taxes and levies relating to
import duty, customs but excluding GST, any other
additional tax, cess, octroi or surcharge as may be
applicable)
Maximum Order Size 10 kg
Tick Size (Minimum Price Re. 1 per 10 grams
Movement)
Daily Price Limit The Exchange has implemented a narrower slab of 3%.
Whenever the narrower slab 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 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%.
Initial Margin* Minimum 6% or based on SPAN whichever is higher
Extreme Loss Margin Minimum 1%
Additional and/ or Special In case of additional volatility, an additional margin (on
Margin both buy & sell side) and/ or special margin (on either buy
or sell side) at such percentage, as deemed fit; will be
imposed in respect of all outstanding positions.
Maximum Allowable Open For individual client: 5 MT for all Gold contracts combined
Position together or 5% of the market wide open position whichever
is higher, for all Gold contracts combined together.
For a member collectively for all clients: 50 MT or 20% of
the market wide open position whichever is higher, for all
Gold contracts combined together.
Delivery
Delivery Unit 1 kg
Delivery Period Margin** Delivery period margins shall be higher of:
a. 3% + 5 day 99% VaR of spot price volatility
Or
b. 25%
Delivery Centre(s) Designated clearinghouse facilities at Ahmedabad
Additional Delivery Mumbai and New Delhi
Centre(s)
Quality Specifications 995 purity
It should be serially numbered Gold bars supplied by LBMA
approved suppliers or other suppliers as may be approved
by MCX to be submitted alongwith supplier’s quality
certificate.
If the Seller offers delivery Seller will get a proportionate premium and sale proceeds
of 999 purity will be calculated in the manner of Rate of delivery* 999/ 995
If the quality is less than 995, it is rejected.
Staggered Delivery Tender The staggered delivery tender period would be the last 5
Period trading days (including expiry day) of the contracts.
The seller/buyer having open position shall have an option,
of submitting an intention of giving/taking delivery, on any
day during the staggered delivery period.
On expiry of the contract, all the open positions shall be
marked for compulsory delivery.
Delivery allocation Allocation of intentions received to give delivery during the
day to buyers having open long position shall be as per
random allocation methodology to ensure that all buyers
have an equal opportunity of being selected to receive
delivery irrespective of the size or value of the position.
However, preference may be given to buyers who have
marked an intention of taking delivery.
Funds pay-in of the delivery allocated to the buyer will be on
T+1 working days i.e. excluding Saturday, Sunday & Public
Holiday.
The buyer to whom the delivery is allocated will not be
allowed to refuse taking delivery. If the seller fails to deliver,
the penal provisions as specified for seller default shall be
applicable.
Delivery order rate On Tender Days:
The delivery order rate (the rate at which delivery will be
allocated) shall be the closing price (weighted average price
of last half an hour) on the respective tender day except on
the expiry date.
On Expiry:
On expiry date, the delivery order rate or final settlement
price shall be the Due Date Rate (DDR) and not the closing
prices.
Due Date Rate (Final For contracts where Final Settlement Price (FSP) is
Settlement Price) determined by polling, unless specifically approved
otherwise, the FSP shall be arrived at by taking the simple
average of the last polled spot prices of the last three trading
days viz.,E0 (expiry day), E-1 and E-2. In the event the spot
price for any one or both of E-1 and E-2 is not available; the
simple average of the last polled spot price of E0,E-1, E-2
and E-3, whichever available, shall be taken as FSP. Thus,
the FSP under various scenarios of non-availability of polled
spot prices shall be as under:
Scenario Polled spot price FSP shall be
availability on simple
E0 E‐1 E‐2 E‐3 average of last
polled spot prices
on:
1 Yes Yes Yes Yes/ E0, E‐1, E‐2
No
2 Yes Yes No Yes E0, E‐1, E‐3
3 Yes No Yes Yes E0, E‐2, E‐3
4 Yes No No Yes E0, E‐3
5 Yes Yes No No E0, E‐1
6 Yes No Yes No E0, E‐2
7 Yes No No No E0
In case of non-availability of polled spot price on expiry day
(E0)/predetermined number of days due to sudden closure
of physical market under any emergency situations noticed,
Clearing Corporation shall decide further course of action
for determining FSP and which shall be in accordance with
MCXCCL circular no. MCXCCL/SPOT/077/2020 dated April
13, 2020.
Delivery Logic Compulsory
*A) The Margin Period of Risk (MPOR) shall be in accordance with SEBI Circular no.
SEBI/HO/CDMRD/DRMP/CIR/P/2020/15 dated January 27, 2020. For applicable minimum
MPOR, refer latest circulars issued by MCXCCL from time to time.
B) For all the applicable margins, refer the latest circulars issued by the Exchange or Multi
Commodity Exchange Clearing Corporation Limited (MCXCCL) from time to time.
**As per SEBI Circular no SEBI/HO/CDMRD//DRMP/CIR/P/2016/77 dated September 01, 2016.
Contract Launch Calendar for Gold contracts
Contract Launch Months Contract Expiry Months
December 2023 December 2024
February 2024 February 2025
April 2024 April 2025
June 2024 June 2025
August 2024 August 2025
October 2024 October 2025
December 2024 December 2025
(Reference Circular no. MCX/TRD/887/2023 dated December 15, 2023)
Delivery and Settlement procedure for
Gold Contract expiring from April 2024 and onwards
Delivery Logic Compulsory Delivery
Staggered Delivery The staggered delivery tender period would be the last 5 trading
days (including expiry day) of the contracts.
Tender Period
Trading day will be based on availability for trading of the
respective commodity on a trading day and excluding special
sessions like Muhurat Trading day.
Staggered Tender 5% incremental margin for last 5 trading days (including expiry
day) of the contract on all outstanding positions in addition to
Period Margin
the Initial, Special and/ or any other additional margin, if any.
Mode of Intention MCXCCL eClear
Submission
Buyer Delivery Primary Delivery Centre:
Intention Last 5 trading days (including expiry day) of the contract up to
7:30 p.m.
Additional Delivery Centres:
Last 4 trading days (excluding expiry day) of the contract,
between 9.30 a.m. and 11.30 a.m.
Seller Delivery Primary Delivery Centre:
Intention Last 5 trading days (including expiry day) of the contract upto 7.30
p.m. The seller will issue delivery intention and will have to do the
delivery pay-in through ComRIS Account by earmarking his existing
valid commodity balance in the ComRIS Account towards the pay-in
obligation upto 7:30 p.m..
Additional Delivery Centres:
Last 4 trading days (excluding expiry day) of the contract,
between 9.30 a.m. and 11.30 a.m. MCXCCL shall match the
buyer and seller intention and confirm the matching intentions
to buyers and sellers by 12.00 p.m. On confirmation by
MCXCCL, neither seller nor buyer shall withdraw from their
commitment by squaring off their positions to the extent of the
intention matched for delivery at additional delivery centre. The
seller shall further submit duly certified copy of the movement
order issued to the vaulting agency to MCXCCL by 3.30 p.m. on
the same day and ensure that the metal is vaulted at the
designated vault at the additional delivery centre before the
delivery pay-in is due. The seller will have to do the delivery pay-
in through ComRIS Account by earmarking his existing valid
commodity balance in the ComRIS Account towards the pay-in
obligation.
Dissemination of Primary Delivery Centre:
Intention The MCX/MCXCCL will inform members through TWS regarding
delivery intentions of the seller’s members and the buyers
respectively by 8:30 p.m. on the respective tender days.
Additional Delivery Centres:
The MCX/MCXCCL will inform members through TWS
regarding delivery intentions of the seller’s members and the
buyers respectively by 10:30 a.m. and 11.30 a.m. on the
respective tender days.
The MCX/MCXCCL will further inform members through TWS
regarding matching intentions of buyers and sellers by 12.00
p.m. on the respective tender days.
Delivery Period Delivery period margins shall be higher of:
Margin
a. 3% + 5 day 99% VaR of spot price volatility
Or
b. 25%
Exemption from Sellers are exempted from payment of all types of margins, if
Staggered Tender goods are tendered as Early Pay In with all the documentary
Period and Delivery evidences. However, MCXCCL shall continue to collect mark
Period Margin to market margins from Sellers.
Delivery Allocation Settlement/closing price on the respective tender days except
Rate on expiry date. On expiry date the delivery order rate shall be
the Due Date Rate (DDR) and not the closing price
Delivery Marking Primary Delivery Centre:
On the respective tender days after the end of the day
Additional Delivery Centres:
The MCX/MCXCCL will inform members through TWS
regarding matching intentions of buyers and sellers by 12.00
p.m. on the respective tender days.
Delivery marking will not be done to seller and buyer in case of
failure of the seller to submit duly certified copy of the
movement order to MCXCCL by 3.30 p.m. on tender day.
Delivery Pay-in Primary Delivery Centre:
The seller will have to do the delivery pay-in through ComRIS Account
by earmarking his existing valid commodity balance in the ComRIS
Account towards the pay-in obligation.
On Tender Days:
On any tender days by 7.30 p.m. Marking of delivery will be done on
the tender days based on the intentions received from the sellers
after the trading hours.
On Expiry:
On expiry all the open positions shall be marked for delivery.
Delivery pay-in will be on E + 1 working day (E- Expiry day) by
2.00 p.m. except Saturdays, Sundays and Trading Holidays.
Additional Delivery Centres:
The seller will have to do the delivery pay-in through ComRIS
Account by earmarking his existing valid commodity balance in
the ComRIS Account towards the pay-in obligation on tender
day or before 12.00 p.m. on T+1 day (where T is the tender day).
The seller shall submit duly certified copy of the movement order
issued to the vaulting agency to MCXCCL by 3.30 p.m on the
tender day and ensure that the goods tendered are vaulted at
the additional delivery centre before 12.00 p.m. on T+1 day
(where T is the tender day).
Funds Pay-in Tender/ Expiry day + 1 working day : 2.00 p.m.
Delivery Pay-out Tender/ Expiry day + 1 working day : 4.00 p.m.
Funds Pay-out Tender/ Expiry day + 1 working day : 4.00 p.m.
Penal Provisions Primary and Additional delivery centre
Seller Default:
3% of Settlement Price + replacement cost (difference between
settlement price and higher of the last spot prices on the
commodity pay-out date and the following day, if the spot price
so arrived is higher than Settlement Price, else this component
will be zero.)
In the event of spot prices not being available on any day during
the post settlement period for computation of replacement cost
on account of delivery default in the expiring contract, then close
price of the next available futures contract of that commodity
shall be used for computation of replacement cost in the event
of delivery default.
Norms for apportionment of penalty –
• At least 1.75% of Settlement Price shall be deposited in
the Settlement Guarantee Fund (SGF) of MCXCCL
• Up to 0.25% of Settlement Price may be retained by
MCXCCL towards administration expenses.
• 1% of Settlement Price + replacement cost shall go to
buyer who was entitled to receive delivery.
Over and above the prescribed penalty, MCXCCL shall take
suitable penal/ disciplinary action against any intentional / wilful
delivery default by seller.
Buyer default shall not be permitted. However, in case of a
clearing member fails to make pay in of funds in the delivery
settlement following penalties shall be levied.
The Clearing Corporation shall review the loss incurred by the
non- defaulting Party, i.e. Seller, at its sole discretion, and
accordingly, levy penalty on the defaulting buyer. However,
such penalty shall be within the overall cap of delivery margins
collected by the CCs, from such defaulting buyer.
Repeated default on delivery obligations: In case of
repeated default by a seller or buyer across all commodity
contracts at end client level (identified based on PAN no.) for
an event, wherein a default on delivery obligations takes
place 3 times or more during a six months period on a rolling
basis, an additional penalty of 3% of the value of delivery
default shall be imposed on each of the repeated delivery
default on delivery obligation.
However, in case of multiple delivery obligations default on
the same day, each settlement day shall be considered as an
event for repeated default.
Norms for Apportioning of the penalty:
The penalty shall be transferred to Settlement Guarantee
Fund (SGF) of the Clearing Corporation.
Intention default (Primary and Additional delivery centre):
Failure by the buyers and sellers to hold open positions to the
extent of intentions given for primary delivery centre or matched
delivery intention in case of additional delivery center or failure
by the seller to give duly certified copy of the movement order
to MCXCCL by 3.30 p.m. in case of additional delivery center on
tender day shall attract the following penal provisions:
3% of Settlement Price + replacement cost
Replacement cost for seller default: difference between
settlement price and higher of the last spot prices on the
commodity pay-out date and the following day, if the spot price
so arrived is higher than Settlement Price, else this component
will be zero.
Replacement cost for buyer default: difference between
settlement price and lower of the last spot prices on the
commodity pay-out date and the following day, if the spot price
so arrived is lower than Settlement Price, else this component
will be zero)
Replacement cost in the event of intention default by the
seller/ buyer in Gold contract shall be computed by using the
close price of the next month contract in the event of
unavailability of spot prices.
Norms for apportionment of penalty –
• At least 1.75% of Settlement Price shall be deposited in
the Settlement Guarantee Fund (SGF) of MCXCCL.
• Up to 0.25% of Settlement Price may be retained by
MCXCCL towards administration expenses.
• 1% of Settlement Price + replacement cost shall go to
the counter party.
If both the buyer and seller fail to hold open positions to the
extent of intentions given for primary delivery centre or matched
delivery intention in case of additional delivery center, a penalty
of 3% of settlement price shall be imposed on both such buyer
and seller. Out of the penalty of 3% of settlement price, 2.75%
shall be deposited in SGF of MCXCCL and balance 0.25% shall
be retained by MCXCCL towards administrative expenses.
Delivery Centre(s) Designated clearinghouse facilities at Ahmedabad
Additional Delivery Mumbai and New Delhi
Centre(s)
Taxes, Duties, Cess Ex-Delivery Centre Inclusive of all taxes / levies relating to
and Levies import duty, customs to be borne by the Seller; but excluding
GST, any other additional tax, cess, octroi or surcharge as may
become due & payable under any law, rules or regulations,
applicable from time to time, to be borne by the buyer.
Buyers and sellers shall have necessary tax registrations
applicable to the jurisdiction of the delivery centres.
Verification by the At the time of taking delivery, the buyer can check his delivery
Buyer at the Time of in front of designated vault personnel. If he is satisfied with the
Release of Delivery quantity and quality of material, then Vault will release the
goods. If Buyer is not satisfied with the quality, he can request
for assaying by any of the MCXCCL approved Independent
Assayers. If the buyer chooses for assaying, designated vault
person will carry the goods to the Assayer’s facilities, get it
assayed and bring it back to designated vault along with
assayer’s certificate. The report shall be final and binding on
both buyer and seller. In case of Variation in quality in the
Independent Assayer’s report from the original report submitted,
the buyer and seller will have to mutually negotiate the final
settlement proceeds within 1 working day from receipt of
assayer’s report. The cost of this assaying as well as cost of
transportation from designated vault to assayer’s facilities to and
fro will be borne by the buyer. The vault charges during such
period will be borne by the buyers. If the buyer does not opt for
assaying at the time of lifting delivery, then he will not have any
further recourse to challenge the quantity or quality
subsequently and it will be assumed that he has received the
quantity and quality as per the delivery obligation by the seller.
Legal Obligation The members will provide appropriate tax forms wherever
required as per law and as customary and neither of the parties
will unreasonably refuse to do so.
Vault, Insurance and Borne by the seller up to funds pay-out date
Transportation
Borne by the buyer after funds pay-out date
Charges
Primary Delivery Centre:
Evidence of Stocks in At the time of issuing Delivery Intention, the Member must satisfy the
Possession MCXCCL that he holds stocks of the quantity and quality specified in
the Delivery Intention at the declared delivery centre by giving
delivery pay-in through ComRIS Account by earmarking existing valid
commodity balance in the ComRIS Account towards the pay-in
obligation.
Additional Delivery Centres:
The seller shall submit duly certified copy of the movement order
issued to the vaulting agency to MCXCCL by 3.30 p.m on the
tender day and ensure that the goods tendered are vaulted at
the additional delivery centre before 12.00 p.m. on T+1 day
(where T is the tender day).
The seller will have to do the delivery pay-in through ComRIS
Account by earmarking his existing valid commodity balance in
the ComRIS Account towards the pay-in obligation on tender
day or before 12.00 p.m. on T+1 day (where T is the tender day).
Validation Process On receipt of delivery, the designated vault personnel will do the
following validations:
a. Whether the person carrying Gold is the
designated clearing agent of the member.
b. Whether the selling member is the bonafide
member of the MCXCCL.
c. Whether the quantity being delivered is from
MCXCCL approved refinery.
d. Whether the serial numbers of all the bars is
mentioned in the packing list provided.
e. Whether the individual original assay certificates
are accompanied with the Gold Bars
Any other validation checks, as they may desire.
Delivery Process In case any of the above validation fails, the designated vault
will contact the MCXCCL office and take any further action only
as per instructions received from the MCXCCL in writing. If all
validations are through, then the designated vault personnel will
put the Gold in the vault. Then the custodian of designated vault
will issue appropriate receipt for having received the goods.
Designated vault in front of the selling member’s clearing agent,
will deposit the said metal into their vault.
Quality Adjustment The price of gold is on the basis of 995 purity. In case a seller
delivers 999 purity, he would get a premium. In such case, the
sale proceeds will be calculated by way of delivery order rate *
999/ 995.
Procedure of Taking For the purpose of taking delivery of goods fully or partially, the
Delivery from the Member shall raise withdraw request in ComRIS and send an
Vault Authority letter on his letter head to the MCXCCL, authorising a
representative on his behalf to take the delivery. The Authority
letter sent by the Member shall consist of the following details:
a. Name of the authorised representative.
b. Name of the Commodity along with quantity.
c. Name of the Vault along with the location.
d. Signature of the authorised representative.
e. Proof of Identity viz. PAN card, driving license, Election
ID.
f. Photo identity proof duly attested by the Member.
The above-mentioned details are required to be sent to the
MCXCCL. Once the MCXCCL receives the above-mentioned
details, the MCXCCL will send it to the Vault authorities directly.
Based on the said details, the Vault will issue the requested
quantity to the authorised representative who has to present
himself personally at the Vault along with the requisite photo
identity proof in original, the copy of which was sent /
communicated to the MCXCCL by its Member.
The Vault officials will, upon final scrutiny/checking of the
identity, deliver goods to the representative of the Member. The
Vault officials in case of any discrepancy or doubt or any other
reason may refuse to issue the goods to the representative
under the intimation to the MCXCCL.
The delivery given to the representative shall be final & binding
to the Member and their constituents at all times.
Deliverable Grade of The selling members tendering delivery will have the option of
Underlying delivering such grades as per the contract specifications. The
Commodity buyer has no option to select a particular grade and the delivery
offered by the seller and allocation by the MCXCCL shall be
binding on him.
Endorsement of The buyer member can endorse delivery order/delivery to a
Delivery constituents or any third party with full disclosure given to the
Order/delivery MCXCCL. Responsibility for contractual liability would be with
the original assignee.
Extension of Delivery As per MCXCCL decision due to a force majeure or otherwise.
Period
Applicability of The general provisions of Byelaws, Rules and Regulations of
Regulations the MCXCCL and decisions taken by SEBI/ the Board of
Directors/ Relevant Authority of the MCXCCL in respect of
matters specified in this document shall form an integral part of
this contract. The MCXCCL or SEBI, as the case may be, may
further prescribe additional measures relating to delivery
procedures, vaulting, quality certification, margining, and risk
management from time to time.
Members and market participants who enter into buy and sell
transactions on MCX need to be aware of all the factors that go
into the mechanism of trading and clearing, as well as all
provisions of the MCXCCL’s Bye Laws, Rules, Regulations,
circulars, directives, notifications of the MCXCCL as well as of
the Regulators, Government and other authorities.
It is the sole obligation and responsibility of the Members and
market participants to ensure that apart from the approved
quality standards stipulated by the MCX, the commodity
deposited / traded / delivered through the Approved
warehouses/Vaults of MCXCCL is in due compliance with the
applicable regulations laid down by authorities like BIS, Orders
under Packaging and Labelling etc., as also other State/Central
laws and authorities issuing such regulations in this behalf from
time to time, including but not limited to compliance of provisions
and rates relating to GST, APMC Tax, Mandi Tax, LBT, octroi,
stamp duty, etc. as may become due & payable under any law,
rules or regulations, applicable from time to time on the
underlying commodity of any contract offered for deposit /
trading / delivery and that MCX/ MCXCCL shall not be
responsible or liable on account of any non-compliance thereof.
All the Sellers giving delivery of goods and all the buyers taking
delivery of goods shall have the necessary GST Registration as
required under the Goods & Service Tax (GST) Act and obtain
other necessary licenses, if any.
In respect of all contracts executed by the Members on MCX, it
shall be the responsibility of the respective members to pay all
applicable statutory fee, stamp duty, taxes and levies in respect
of all deliveries as well as futures contracts directly to the
concerned Central/State/Local Government Departments and
the MCX/MCXCCL shall not be held liable or accountable or
responsible on account of any non-compliance thereof.
The buyer shall have to lodge their claim against quality and/or
quantity of goods/ delivery allocated to them while retaining
disputed goods in the designated vault itself (without lifting them
out of the vault), if any, within 48 hours from the date of
scheduled pay out of the MCXCCL and failing which, no claim
shall be entertained by the MCXCCL thereafter.
The MCXCCL is not responsible and shall not be held liable or
accountable or responsible for value of the goods/stock of the
commodities stored/lying in MCXCCL designated warehouse/s,
vault agency and which is fully/partially confiscated / seized by
any local or statutory or any other authority for any reason
whatsoever or for any deterioration in quality of the goods
stored due to above reason or which have passed the Final
Expiry date and continue to remain in the MCXCCL accredited
warehouse. The decision of the MCXCCL shall be final and
binding to all Members and their constituents in this regard. (The
interpretation or clarification given by the MCXCCL on any terms
of this delivery and settlement procedure shall be final and
binding on the members and other market participants.)
(Reference Circular no MCXCCL/C&S/080/2022 dated April 06, 2022 &
MCXCCL/C&S/276/2023 dated November 22, 2023)
