| 1. |
What are the benefits in Spot trading in commodities? |
| |
Direct buyer & seller interface with the aid of online platform. Effective price discovery for the seller due to pan India participation Availability of large buyer base for seller Counterparty guarantee of buying / selling the commodity Activity of the seller to fix price for this commodity. |
| |
|
| 2. |
Who can become member of NCDEX Spot? |
| |
An individual, partnership firm, Private limited company, public limited Company, co-operative societies are eligible to become members of NCDEX Spot. |
| |
|
| 3. |
Can we apply for the membership under the HUF account? |
| |
No, HUF is currently not permitted for NCDEX Spot membership. |
| |
|
| 4. |
Is NCDEX Spot a separate legal corporate entity? |
| |
NCDEX Spot Exchange Ltd (NSEL) is a public limited company registered under The Companies Act, 1956 with the Registrar of Companies, Maharashtra in Mumbai on October 18, 2006. The registration no of NCDEX Spot Exchange Ltd. is U93090MH2006PLC165172. |
| |
|
| 5. |
What are the membership charges? |
| |
There are two types of members : For trading cum clearing member (TCM), who are already existing member of NCDEX Ltd.,the criteria is as follows: Net worth of Rs 50 lacs Interest free deposit of Rs 5 lacs Annual membership fees of Rs. 10,000/- per annum (One time membership fees is waived) For New Trading cum clearing member (TCM) (Non-existing member of NCDEX Ltd.) Net worth of Rs 50 lacs Interest free deposit of Rs 5 lacs Annual membership fees of Rs.10,000/- per annum (One time membership fees is Rs.20,000/-) For Trading member (TM) Net worth of Rs. 5 lacs Annual membership fees of Rs.10,000/- |
| |
|
| 6. |
How is the net worth calculated for a new subsidiary? |
| |
Net worth of the new entity should be Rs 50 lacs. Please follow the procedure explained in detail in Annexure SC-1A of the application form to calculate the networth. |
| |
Top |
| |
|
| 7. |
Whether the networth of the holding company will be taken into consideration for the same? |
| |
No, the networth of the holding company is not taken into consideration for reckoning the networth of the entity applying for membership. |
| |
|
| 8. |
How could a new company submit the 3 years balance sheet? |
| |
In case of newly formed companies, only current balance sheet needs to be submitted. |
| |
|
| 9. |
Who will certify the various certificates, which are required to be certified by the auditor of the company? |
| |
The certificate and statements need to be certified by a Qualified Chartered Accountant who has audited the same. |
| |
|
| 10. |
Is it a must that the individual should be a graduate? |
| |
It is desirable for the individual’s own understanding of the Spot Markets. |
| |
|
| 11. |
What is the lock in period for the interest free security deposit? |
| |
The lock in period for the interest free security deposit fee is three years. |
| |
|
| 12. |
When is the security deposit eligible for refund in case of surrender? |
| |
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. |
| |
Top |
| |
|
| 13. |
Whether we can apply for the membership of NCDEX Spot in the same name in which we are holding the membership of NCDEX? |
| |
The existing member of NCDEX Ltd. can apply in the same name. |
| |
|
| 14. |
Whether exposure will be allowed against base capital? |
| |
Exposure will be permitted against base capital. |
| |
|
| 15. |
What are the trading hours? |
| |
The trade timings of the exchange are 1100 a.m. to 3.00 p.m. |
| |
|
| 16. |
Please indicate the permissible brokerage structure and brokerage pattern. |
| |
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. |
| |
|
| 17. |
Is there any additional cost towards acquiring membership in addition to what has been specified in the application form? |
| |
There are no additional costs other than what is stated in the application form. |
| |
|
| 18. |
Are the memberships to be taken afresh for each of the products to be traded in NCDEX Spot from time to time? |
| |
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 Spot. |
| |
Top |
| |
|
| 19. |
Do we need a separate terminal to trade on NCDEX Spot? |
| |
Yes, separate VSat / Internet connectivity is required. |
| |
|
| 20. |
What is the meaning of dominant promoter group? |
| |
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 Spot to identify and understand the individuals, who are the driving forces of the entities applying for membership on NCDEX Spot. |
| |
|
| 21. |
What are the commodities identified for trading? |
| |
To begin with, Sugar will be traded on Exchange. As and when other commodities are introduced, the market will be kept informed. |
| |
|
| 22. |
How NCDEX Spot is different from Mandi Operations? |
| |
It is not the same old Spot trading model. Consider the following benefits, none of which is available in the current spot market transactions • The seller has prior knowledge of the spot and futures prices at his own or at a nearby centre. This provides him with the option of selling his produce at the centre of his choice. • Since the goods are assayed prior to sale, he knows the grade of his produce and can guage the true price of his product based on the benchmark grade price and the applicable premium or discount accorded based on the grade. • The Spot platform would offer excellent opportunities for arbitrage against future prices if the goods in the spot market conform to futures quality. |
| |
|
| 23. |
What is your membership scrutiny process? |
| |
For the existing member of NCDEX, there is no any membership scrutiny process. And for the new members, 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 Spot. Successful applicants will be intimated by NCDEX Spot. |
| |
|
| 24. |
At what point of time one has to comply with the net worth requirements? |
| |
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. |
| |
Top |