Description
This is a presentation describing how the market operates in terms of risk management system, clearing and settlement and delivery mechanism.
Market Operations
Content
• Overview
• • • Risk Management & Surveillance Clearing & Settlement Delivery Mechanism
Price Circuit Filter
? Pre-defined in the Contract Specifications
? Circuit Filter provides the maximum price range
(% of variation) during a trading day ? Varies for different commodities
? Computed on the previous day’s Close Price
Margins
Type of Margin Initial Margin Mark to Market Margin Special Margin Incremental Margin Delivery Margin Predefined in contract specification Calculated on Real time basis Margin levied over and above the initial & additional margins Such margins may be levied on either on long or short open positions Online margins levied during the tender period of the contract on all the open positions till the time of expiry of the contract Margins levied on all the open positions marked for delivery Description
? The margin is calculated on o the contract wise net open positions o at end client level ? Real Time alerts for margin utilization beyond specified percentages (60%, 75%, 90%) ? Spread Benefit on Spread Contracts (75%)
Initial Margin
• Margins at Client level • Payable upfront • Alert signals to Members at 60%, 75% and
90% utilization
• Automatic ‘Square off’ mode if Member crosses the Permitted Margin limits (100%)
Initial Margin contd..
Margin Deposit of a Member = Rs. 1 crore
System generates alerts utilisation of 60% Rs. 60 75% Rs. 75 90% Rs. 90
on Margin lakh lakh lakh Member gets automatically in “Square Off” mode. Then he is restricted from taking fresh positions and is allowed only to Square off his existing positions build up by him.
In case Margin utilisation crosses 100%
The member gets activated ? upon reducing existing position, or ? by depositng Additional Margin with Exchange
Member in ACTIVE MODE
Marked-To-Market (MTM) Loss
•
Monitoring of MTM loss, both notional and booked, incurred by member up to the last executed trade This is calculated on Real-time basis by way of computing the difference between actual traded price and last traded price Alert signals to Members at 60%, 75%, 90% of MTM Losses Automatic ‘Square off’ mode, if Member crosses the Permitted MTM limit (75% of Deposit)
•
•
•
Marked-to-Market (MTM) contd..
Margin Deposit = Rs. 1 crore MTM limit (75%) = Rs. 75 lakh
System generates alerts on MTM loss of 60% Rs. 45 lakh 75% Rs. 56.25 lakh 90% Rs. 67.50 lakh Member gets automatically in “Square Off” mode. Then he is restricted from taking fresh positions and is allowed only to Square off his existing positions build up by him.
In case MTM crosses 100%
The member gets activated ? by depositng Additional Margin with the Exchange, or ? upon reducing existing position
Member in ACTIVE MODE
Special Margin
Commodity Base daily price limit (%) 1st slab of daily price limit without cooling off period (%) 3 2nd slab of daily price limit after cooling off period of 15 minutes(%) 3 Maximum daily price limit (%)
Gold
3
9
Silver
4
2
3
9
Copper
4
2
3
9
Crude Oil
4
2
3
9
Aluminium
4
2
3
9
Open Position
•
In order to avoid building-up of huge open position in any commodity, the FMC has specified Maximum Allowable Open Position Limit for Member and his Client * at Commodity level (all Contracts) * reduced limits for Near Month Contract
•
Exchange, through a software utility, monitors breach of specified limits at periodic intervals during trading session both at Member and Client levels
In case of violation, penalty is imposed
•
Contents
Risk Management System Surveillance System Clearing & Settlement Delivery Mechanism
On-line Monitoring
• Price Volatility • Trading pattern of Futures Market as compared to Spot Market • Margin Utilization by Members
• Marked-to-Market of Members
Suspension of Members
• On breach of Initial Security Deposit • Follow-up with Suspended Members • Square-off Open Position • Penalty for the Suspension Period • Activation on having Initial Security Deposit
Exchange Surveillance Policy
• Restricted entry through Electronic Access Card
• Close Circuit Camera in Surveillance Room
• Restricted access to the Confidential information Open Position, Trade Details, Margin Deposit etc. of Members / Clients • No Direct Outgoing calls • Recording of calls • Mobiles not allowed
Message to Members/Participants
• Launching of Commodities and Contracts
• Spot prices (domestic)
• Parity Prices of international commodities • Due Date Rates
• Imposition / withdrawals of margins
• Relaxation in Price Circuit Filter • Reminders on due dates about contract expiry • Any changes in the policy of the Exchange • Issue of circulars • Announcement of Holidays
Contents
Risk Management System Surveillance System Clearing & Settlement Delivery Mechanism
An Introduction
Clearing & Settlement (C&S) ? ? ? Acts as an interface between the Exchange and its members, Processing transactions of the members for the trades executed. Provides with the logical conclusion for the trades executed.
?
Supplements the trading activities of the members
by processing the margin increase/ release requests.
?
Billing centre for the Exchange.
Clearing Entities
? Clearing Members Trading-cum-Clearing Member Institutional Trading-cum-Clearing Member Professional Clearing Member ? Clearing Banks HDFC Bank IndusInd Bank UTI Bank Corporation Bank Citibank N.A Yes Bank
Bank of India Union Bank of India State Bank of India Kotak Mahindra Bank ICICI Bank Development Credit Bank
Security Deposit
* Cash * Bank guarantee - from Exchange approved banks * Fixed deposit - from Exchange approved banks * Securities * Warehouse Receipt - approved commodities
Security Deposit
Principles of Valuation ? If member maintains a cash deposit of less than 50 Lacs then maximum deposit in the form of BG/FD is 3 times the cash deposit (1:3 ratio) Limit = Cash+ min(3*cash, BG+FD) + (min(cash + min(3 *cash, BG+FD)), (WR+Sec)) ? If member maintains a minimum cash deposit of Rs. 50 Lacs then the member shall be exempt from the 1:3 ratio.
Limit = Cash +BG + FD + (min((Cash+BG+FD), (WR + Sec)
Security Deposit
S.No Case Cash (fig. in lacs)
Cash-10 BG-25;FD-30 WR-10; Sec.-10 Cash-10 BG-25; FD-30 WR-25; Sec.-25 Cash-100 BG-250; FD-300 WR-250; Sec.-250
BG& FD
WR & Sec
Total eligible limit 60 80 1150
1 2 3
10 10 100
30 30 550
20 40 500
4
Cash-100 BG-250; FD-300 WR-50; Sec.-550
100
550
550
1200
Funds Movement
? Members to have Settlement a/c and clients a/c ? All debit instructions and credit instructions effected in Settlement a/c ? Pay-in and pay-out instructions are issued by the Exchange ? Member to send written communication to the Exchange in respect of additional deposits ? From settlement a/c, the member is entitled to transfer money to clients a/c, but he cannot issue any other cheque ? Members to deposit all cheques received from clients in clients a/c and issue cheques to clients from clients a/c
Settlement
Daily Settlement ? ? ? Daily Settlement implies the settlement of MTM profit/ loss on a daily basis (T+1). Exchange computes the MTM profit/ loss for the day for all the members. Exchange sends debit/credit instructions to the member’s settlement account with the banks for MTM pay-in/ pay-out obligation on T+1 basis.
clearing
Final Settlement
? ? Final Settlement implies the settlement at the expiry of a contract. Based on the delivery logic provided in the contract specification for a commodity, the intentions are accepted by the Exchange during the tender period.
delivery
?
?
All the valid intentions for delivery are marked for delivery.
Balance open positions at the expiry of the contract are cash settled.
Settlement
? At end of day, reports are downloaded to the members ? In case of pay-in, the member to have sufficient balance in his account by 10.30 am ? Pay-out by 12.00 noon by way of electronic credit in the settlement account
Funds Pay In
Clearing Banks
Clearing Bank
MCX Settlement Account
Member Bank Account
Settlement Account
Margin payments
Client Account
Mark-to-market pay-in
Funds Pay out
Clearing Bank
Clearing Banks
Member Bank Account
MCX Settlement Account
Settlement Account
Margin refunds
Client Account
Mark-to-market pay-out
Contents
Risk Management System Surveillance System Clearing & Settlement Delivery Mechanism
Final Settlement Delivery
Final Settlement through Delivery 1. 2. 3. 4. Final settlement is based on the delivery logic applicable to the expiring contract. Based on the delivery logic, the open positions are marked for delivery at DDR. Open position shall be marked for delivery in deliverable lots. Balance open positions on expiry, if any, are closed out at the due date rates (DDR).
Following are the different types of delivery logic ? Sellers’ Option
?
?
Compulsory Option
Both Option
Delivery Logic
Sellers Option: ? The seller has the right to deliver. ? On receipt of valid intentions from selling members, deliveries are marked for intended quantities. ? On seller’s intention, buyer is obliged to take the delivery. Compulsory Option: ? Open positions (long & short) at expiry of contract shall be marked for delivery irrespective of the member’s intention. ? Members with open position are required to honor their delivery obligations i.e seller has to deliver the commodities and the buyer has to remit the funds. Both Option: ? Delivery shall be marked only in cases where the delivery intentions of both the buyers and sellers match with each other. ? If the intentions do not match, then all the open positions at the expiry of the contract are closed out at the DDR.
Delivery Specifics
Following are the checkpoints for the delivery procedure ? Intention for delivery, under Seller’s Option, is required to be submitted at least 5 days
before the expiry of the contract.
? ? ? ? Delivery intentions shall be in multiples of minimum deliverable lots. A seller at the time of submitting the intention has to provide a valid proof of delivery. The seller should have deposited duly certified goods in the Exchange approved warehouses at the time of submitting the delivery intention. Delivery orders of members with open short position shall be allocated to the members with open long position on the date of the expiry. Priorities shall be given to the members giving the delivery intentions at the time of delivery marking. ? ? ? Exchange shall display on its system, details of the delivery intentions received on each designated tender day. Seller can deliver goods in the physical / demat form as specified in the contract. Penalties are levied to members defaulting in giving / taking deliveries.
Delivery Specifics
? ? Deliveries marked shall be for the deliverable lots at the DDR. Any adjustment for quality and quantity variation, for the actual delivery delivered, shall
be
? ? CNF/ ?
effected subsequently.
Members have to ensure the necessary sales tax/ VAT registration as a pre-requisite. In absence of the sales tax/ VAT registration, the members may avail the services of Commission agents. Exchange shall issue delivery orders to the buying members, authorizing their lift the physical delivery form the warehouse. Buying members need to their representative to the Exchange.
representative to ?
submit the details of
The buying member need to provide end client billing details to the selling member’s end client to raise the tax invoices.
?
?
The seller member shall dispatch the tax invoices to the buying member under an
intimation to the Exchange. Exchange shall recover the amount of taxes from the buying member and remit the seller member, subject to receipt of the tax invoices.
same to the
Delivery- Supplemental Settlement
• • • •
Differences on account of: Quality differences – Premium/Discounts Quantity differences - Shortage/Excess in deliveries Sales Tax
Responsibility of Seller member:
Furnishing information to the Exchange for Settlement purposes – Transaction number, ST registration number, Validity date, surcharge rate, turnover tax rate, resale tax rate
Responsibility of Buying member: Furnishing information to the Exchange for Settlement purposes – Transaction number, name and address of the client, If sales tax exemption is sought then the form number
Delivery- Supplemental Settlement
• Invoice to be submitted by seller client to buyer client at the Delivery value of the transaction through clearing members
• Buyers to forward exemption forms to the sellers
through the clearing members • Delivery valuation for Sales Tax (Delivered quantity * Final settlement price) + or – (Premium/discount for grade actually delivered)
Dematerialization
• Dematerialisation refers to the issue of an electronic credit,
instead of a vault/warehouse receipt, to the depositor against the
deposit of commodities • Opening of Demat Account: • Mandatory to be opened with both – NSDL and CDSL • Pay-out in Demat may be received at either of the depositories • Currently, there is no provision for inter-depository transfer of commodities
Types of Demat Account
• Beneficiary Account: Demat a/c opened by an investor/member to hold and transact commodities through demat WR • Clearing Member (Pool) Account: o To transfer commodities to and receive delivery of commodities from the clearing house o Member doesnot have any ownership rights over the commodities held in such an account • Clearing Member to open both – Beneficiary and CM Pool A/c
Process of Opening a Demat Account
• Submit duly filled form to the empanelled DP • A copy of Membership letter received from MCX to be submitted
• Depository will generate a CM BP ID
Dematerialization - ICIN
• Commodities identification using Commodiries Identification Number) • ICIN to be unique for handling
ICIN
(International
• ICIN is a Unique number allotted by the depository
o Commodity type o Grade o Warehouse operator
o Location/branch
o Validity period for delivery in the exchange
Re-materialization
• Issue of physical delivery against the credit in the Demat A/c of a person • Beneficial Owner makes request to DP • R&T Agent authorizes the delivery to the Buyer client Warehouse to release physical
• Warehouse releases the commodity to the Client • For withdrawing fractional quantities from the warehouse, above mentioned process has to be followed
Thank You
doc_674153135.ppt
This is a presentation describing how the market operates in terms of risk management system, clearing and settlement and delivery mechanism.
Market Operations
Content
• Overview
• • • Risk Management & Surveillance Clearing & Settlement Delivery Mechanism
Price Circuit Filter
? Pre-defined in the Contract Specifications
? Circuit Filter provides the maximum price range
(% of variation) during a trading day ? Varies for different commodities
? Computed on the previous day’s Close Price
Margins
Type of Margin Initial Margin Mark to Market Margin Special Margin Incremental Margin Delivery Margin Predefined in contract specification Calculated on Real time basis Margin levied over and above the initial & additional margins Such margins may be levied on either on long or short open positions Online margins levied during the tender period of the contract on all the open positions till the time of expiry of the contract Margins levied on all the open positions marked for delivery Description
? The margin is calculated on o the contract wise net open positions o at end client level ? Real Time alerts for margin utilization beyond specified percentages (60%, 75%, 90%) ? Spread Benefit on Spread Contracts (75%)
Initial Margin
• Margins at Client level • Payable upfront • Alert signals to Members at 60%, 75% and
90% utilization
• Automatic ‘Square off’ mode if Member crosses the Permitted Margin limits (100%)
Initial Margin contd..
Margin Deposit of a Member = Rs. 1 crore
System generates alerts utilisation of 60% Rs. 60 75% Rs. 75 90% Rs. 90
on Margin lakh lakh lakh Member gets automatically in “Square Off” mode. Then he is restricted from taking fresh positions and is allowed only to Square off his existing positions build up by him.
In case Margin utilisation crosses 100%
The member gets activated ? upon reducing existing position, or ? by depositng Additional Margin with Exchange
Member in ACTIVE MODE
Marked-To-Market (MTM) Loss
•
Monitoring of MTM loss, both notional and booked, incurred by member up to the last executed trade This is calculated on Real-time basis by way of computing the difference between actual traded price and last traded price Alert signals to Members at 60%, 75%, 90% of MTM Losses Automatic ‘Square off’ mode, if Member crosses the Permitted MTM limit (75% of Deposit)
•
•
•
Marked-to-Market (MTM) contd..
Margin Deposit = Rs. 1 crore MTM limit (75%) = Rs. 75 lakh
System generates alerts on MTM loss of 60% Rs. 45 lakh 75% Rs. 56.25 lakh 90% Rs. 67.50 lakh Member gets automatically in “Square Off” mode. Then he is restricted from taking fresh positions and is allowed only to Square off his existing positions build up by him.
In case MTM crosses 100%
The member gets activated ? by depositng Additional Margin with the Exchange, or ? upon reducing existing position
Member in ACTIVE MODE
Special Margin
Commodity Base daily price limit (%) 1st slab of daily price limit without cooling off period (%) 3 2nd slab of daily price limit after cooling off period of 15 minutes(%) 3 Maximum daily price limit (%)
Gold
3
9
Silver
4
2
3
9
Copper
4
2
3
9
Crude Oil
4
2
3
9
Aluminium
4
2
3
9
Open Position
•
In order to avoid building-up of huge open position in any commodity, the FMC has specified Maximum Allowable Open Position Limit for Member and his Client * at Commodity level (all Contracts) * reduced limits for Near Month Contract
•
Exchange, through a software utility, monitors breach of specified limits at periodic intervals during trading session both at Member and Client levels
In case of violation, penalty is imposed
•
Contents
Risk Management System Surveillance System Clearing & Settlement Delivery Mechanism
On-line Monitoring
• Price Volatility • Trading pattern of Futures Market as compared to Spot Market • Margin Utilization by Members
• Marked-to-Market of Members
Suspension of Members
• On breach of Initial Security Deposit • Follow-up with Suspended Members • Square-off Open Position • Penalty for the Suspension Period • Activation on having Initial Security Deposit
Exchange Surveillance Policy
• Restricted entry through Electronic Access Card
• Close Circuit Camera in Surveillance Room
• Restricted access to the Confidential information Open Position, Trade Details, Margin Deposit etc. of Members / Clients • No Direct Outgoing calls • Recording of calls • Mobiles not allowed
Message to Members/Participants
• Launching of Commodities and Contracts
• Spot prices (domestic)
• Parity Prices of international commodities • Due Date Rates
• Imposition / withdrawals of margins
• Relaxation in Price Circuit Filter • Reminders on due dates about contract expiry • Any changes in the policy of the Exchange • Issue of circulars • Announcement of Holidays
Contents
Risk Management System Surveillance System Clearing & Settlement Delivery Mechanism
An Introduction
Clearing & Settlement (C&S) ? ? ? Acts as an interface between the Exchange and its members, Processing transactions of the members for the trades executed. Provides with the logical conclusion for the trades executed.
?
Supplements the trading activities of the members
by processing the margin increase/ release requests.
?
Billing centre for the Exchange.
Clearing Entities
? Clearing Members Trading-cum-Clearing Member Institutional Trading-cum-Clearing Member Professional Clearing Member ? Clearing Banks HDFC Bank IndusInd Bank UTI Bank Corporation Bank Citibank N.A Yes Bank
Bank of India Union Bank of India State Bank of India Kotak Mahindra Bank ICICI Bank Development Credit Bank
Security Deposit
* Cash * Bank guarantee - from Exchange approved banks * Fixed deposit - from Exchange approved banks * Securities * Warehouse Receipt - approved commodities
Security Deposit
Principles of Valuation ? If member maintains a cash deposit of less than 50 Lacs then maximum deposit in the form of BG/FD is 3 times the cash deposit (1:3 ratio) Limit = Cash+ min(3*cash, BG+FD) + (min(cash + min(3 *cash, BG+FD)), (WR+Sec)) ? If member maintains a minimum cash deposit of Rs. 50 Lacs then the member shall be exempt from the 1:3 ratio.
Limit = Cash +BG + FD + (min((Cash+BG+FD), (WR + Sec)
Security Deposit
S.No Case Cash (fig. in lacs)
Cash-10 BG-25;FD-30 WR-10; Sec.-10 Cash-10 BG-25; FD-30 WR-25; Sec.-25 Cash-100 BG-250; FD-300 WR-250; Sec.-250
BG& FD
WR & Sec
Total eligible limit 60 80 1150
1 2 3
10 10 100
30 30 550
20 40 500
4
Cash-100 BG-250; FD-300 WR-50; Sec.-550
100
550
550
1200
Funds Movement
? Members to have Settlement a/c and clients a/c ? All debit instructions and credit instructions effected in Settlement a/c ? Pay-in and pay-out instructions are issued by the Exchange ? Member to send written communication to the Exchange in respect of additional deposits ? From settlement a/c, the member is entitled to transfer money to clients a/c, but he cannot issue any other cheque ? Members to deposit all cheques received from clients in clients a/c and issue cheques to clients from clients a/c
Settlement
Daily Settlement ? ? ? Daily Settlement implies the settlement of MTM profit/ loss on a daily basis (T+1). Exchange computes the MTM profit/ loss for the day for all the members. Exchange sends debit/credit instructions to the member’s settlement account with the banks for MTM pay-in/ pay-out obligation on T+1 basis.
clearing
Final Settlement
? ? Final Settlement implies the settlement at the expiry of a contract. Based on the delivery logic provided in the contract specification for a commodity, the intentions are accepted by the Exchange during the tender period.
delivery
?
?
All the valid intentions for delivery are marked for delivery.
Balance open positions at the expiry of the contract are cash settled.
Settlement
? At end of day, reports are downloaded to the members ? In case of pay-in, the member to have sufficient balance in his account by 10.30 am ? Pay-out by 12.00 noon by way of electronic credit in the settlement account
Funds Pay In
Clearing Banks
Clearing Bank
MCX Settlement Account
Member Bank Account
Settlement Account
Margin payments
Client Account
Mark-to-market pay-in
Funds Pay out
Clearing Bank
Clearing Banks
Member Bank Account
MCX Settlement Account
Settlement Account
Margin refunds
Client Account
Mark-to-market pay-out
Contents
Risk Management System Surveillance System Clearing & Settlement Delivery Mechanism
Final Settlement Delivery
Final Settlement through Delivery 1. 2. 3. 4. Final settlement is based on the delivery logic applicable to the expiring contract. Based on the delivery logic, the open positions are marked for delivery at DDR. Open position shall be marked for delivery in deliverable lots. Balance open positions on expiry, if any, are closed out at the due date rates (DDR).
Following are the different types of delivery logic ? Sellers’ Option
?
?
Compulsory Option
Both Option
Delivery Logic
Sellers Option: ? The seller has the right to deliver. ? On receipt of valid intentions from selling members, deliveries are marked for intended quantities. ? On seller’s intention, buyer is obliged to take the delivery. Compulsory Option: ? Open positions (long & short) at expiry of contract shall be marked for delivery irrespective of the member’s intention. ? Members with open position are required to honor their delivery obligations i.e seller has to deliver the commodities and the buyer has to remit the funds. Both Option: ? Delivery shall be marked only in cases where the delivery intentions of both the buyers and sellers match with each other. ? If the intentions do not match, then all the open positions at the expiry of the contract are closed out at the DDR.
Delivery Specifics
Following are the checkpoints for the delivery procedure ? Intention for delivery, under Seller’s Option, is required to be submitted at least 5 days
before the expiry of the contract.
? ? ? ? Delivery intentions shall be in multiples of minimum deliverable lots. A seller at the time of submitting the intention has to provide a valid proof of delivery. The seller should have deposited duly certified goods in the Exchange approved warehouses at the time of submitting the delivery intention. Delivery orders of members with open short position shall be allocated to the members with open long position on the date of the expiry. Priorities shall be given to the members giving the delivery intentions at the time of delivery marking. ? ? ? Exchange shall display on its system, details of the delivery intentions received on each designated tender day. Seller can deliver goods in the physical / demat form as specified in the contract. Penalties are levied to members defaulting in giving / taking deliveries.
Delivery Specifics
? ? Deliveries marked shall be for the deliverable lots at the DDR. Any adjustment for quality and quantity variation, for the actual delivery delivered, shall
be
? ? CNF/ ?
effected subsequently.
Members have to ensure the necessary sales tax/ VAT registration as a pre-requisite. In absence of the sales tax/ VAT registration, the members may avail the services of Commission agents. Exchange shall issue delivery orders to the buying members, authorizing their lift the physical delivery form the warehouse. Buying members need to their representative to the Exchange.
representative to ?
submit the details of
The buying member need to provide end client billing details to the selling member’s end client to raise the tax invoices.
?
?
The seller member shall dispatch the tax invoices to the buying member under an
intimation to the Exchange. Exchange shall recover the amount of taxes from the buying member and remit the seller member, subject to receipt of the tax invoices.
same to the
Delivery- Supplemental Settlement
• • • •
Differences on account of: Quality differences – Premium/Discounts Quantity differences - Shortage/Excess in deliveries Sales Tax
Responsibility of Seller member:
Furnishing information to the Exchange for Settlement purposes – Transaction number, ST registration number, Validity date, surcharge rate, turnover tax rate, resale tax rate
Responsibility of Buying member: Furnishing information to the Exchange for Settlement purposes – Transaction number, name and address of the client, If sales tax exemption is sought then the form number
Delivery- Supplemental Settlement
• Invoice to be submitted by seller client to buyer client at the Delivery value of the transaction through clearing members
• Buyers to forward exemption forms to the sellers
through the clearing members • Delivery valuation for Sales Tax (Delivered quantity * Final settlement price) + or – (Premium/discount for grade actually delivered)
Dematerialization
• Dematerialisation refers to the issue of an electronic credit,
instead of a vault/warehouse receipt, to the depositor against the
deposit of commodities • Opening of Demat Account: • Mandatory to be opened with both – NSDL and CDSL • Pay-out in Demat may be received at either of the depositories • Currently, there is no provision for inter-depository transfer of commodities
Types of Demat Account
• Beneficiary Account: Demat a/c opened by an investor/member to hold and transact commodities through demat WR • Clearing Member (Pool) Account: o To transfer commodities to and receive delivery of commodities from the clearing house o Member doesnot have any ownership rights over the commodities held in such an account • Clearing Member to open both – Beneficiary and CM Pool A/c
Process of Opening a Demat Account
• Submit duly filled form to the empanelled DP • A copy of Membership letter received from MCX to be submitted
• Depository will generate a CM BP ID
Dematerialization - ICIN
• Commodities identification using Commodiries Identification Number) • ICIN to be unique for handling
ICIN
(International
• ICIN is a Unique number allotted by the depository
o Commodity type o Grade o Warehouse operator
o Location/branch
o Validity period for delivery in the exchange
Re-materialization
• Issue of physical delivery against the credit in the Demat A/c of a person • Beneficial Owner makes request to DP • R&T Agent authorizes the delivery to the Buyer client Warehouse to release physical
• Warehouse releases the commodity to the Client • For withdrawing fractional quantities from the warehouse, above mentioned process has to be followed
Thank You
doc_674153135.ppt