abhishreshthaa
Abhijeet S
Settlement – Premium/ Discount
Standard Acceptable grade is defined in contract specification based on the
Nature of the commodity,
Grades available in the market place
The acceptability for settlement
Variation in grade and Premiums/Discounts for
Gold
Mustard Seed
Cotton
No variations in grade for
Silver
Soya Oil
Soya Seed
Mustard Oil
CPO Crude Palm oil
RBD Palm Olein
Settlement – Premium/ Discount
Delivery accepted within the ‘Acceptable grade’ from the Delivering (Seller) Member
Quality Specifications are assayed by accredited Assayer
Premium/Discount - Calculated based on the grade of commodity delivered
Clearing member wise premiums/discount report is generated
Date of settlement of the premiums/discounts
Grades delivered
Premiums/discounts for each case
Net funds to pay or receive for each clearing member.
Example - GOLD
Standard Specifications:
Key differentiator for GOLD: Purity
The purity of standard grade is Fineness is 100 %.
Computation of premium/discount =
100 – (Purity level for the grade /purity level for the standard grade)X100.
Standard Specifications:
Key differentiator for Mustard Seed : Oil Content
Oil content for standard grade mustard seed < 42%>
Computation of premium/discount =
100 – (Purity level for the grade /purity level for the standard grade)X100
Standard Acceptable grade is defined in contract specification based on the
Nature of the commodity,
Grades available in the market place
The acceptability for settlement
Variation in grade and Premiums/Discounts for
Gold
Mustard Seed
Cotton
No variations in grade for
Silver
Soya Oil
Soya Seed
Mustard Oil
CPO Crude Palm oil
RBD Palm Olein
Settlement – Premium/ Discount
Delivery accepted within the ‘Acceptable grade’ from the Delivering (Seller) Member
Quality Specifications are assayed by accredited Assayer
Premium/Discount - Calculated based on the grade of commodity delivered
Clearing member wise premiums/discount report is generated
Date of settlement of the premiums/discounts
Grades delivered
Premiums/discounts for each case
Net funds to pay or receive for each clearing member.
Example - GOLD
Standard Specifications:
Key differentiator for GOLD: Purity
The purity of standard grade is Fineness is 100 %.
Computation of premium/discount =
100 – (Purity level for the grade /purity level for the standard grade)X100.
Standard Specifications:
Key differentiator for Mustard Seed : Oil Content
Oil content for standard grade mustard seed < 42%>
Computation of premium/discount =
100 – (Purity level for the grade /purity level for the standard grade)X100