Tender and delivery period: The tender and delivery period will commence on 1st day of the contract maturity month or if 1st day is a holiday, then it would commence on immediate subsequent working day. Normal trading in a contract will continue upto the last trading day prior to the day of commencement of tender and delivery period.

Delivery period margin: With effect from the date of commencement of tender and delivery period, the delivery period margin of 25% on the net outstanding position will be applicable. Such margin will be applicable on the net outstanding position at member level in the contract entering into delivery period. If two clients of the same member have outstanding position in such contracts, the member himself can settle the delivery among his clients and such delivery will not be routed through the Exchange mechanism and therefore on such offsetting positions, the Exchange will not charge any margin, though the member is entitled to charge delivery period margin from such clients till fulfillment of their obligations. If the seller delivers gold to Group 4 Securities in advance, then delivery period margin is not applicable on such position. 

Tender of delivery: During 1st to 6th of the contract maturity month, the seller will have a right to deliver gold on any working day (excluding Saturdays, Sundays and other holidays). Such delivery can be either in full on a single delivery day or it can be in parts on each of such days. However, the open sale position, if any, remaining outstanding on 5th of the contract maturity month (preceding working day if 5th is a holiday) must be delivered on 6th day of the contract maturity month (subsequent working day, if 6th is a holiday). 

Buyer's intention: The net buyers having net buy position on the date of commencement of tender and delivery period, which is 1st day of the contract maturity month, have to indicate an intention to lift delivery specifying the quantity and place of delivery as per their choice by 3 p.m. on such day. On the basis of such intention received from the buyers, the tender notice received from the sellers is firstly allocated among the willing buyers and residual quantity, if any, is allocated to other buyers, irrespective of the fact whether they have given their intention for lifting delivery or not. Further, the buyer will not have any option about choosing the place of delivery, rather he has to accept delivery as per allocation made by the Exchange and communicated to him by end of that day. Once a delivery is allocated to a buyer, he shall not square off such position.

Buyer's option: If a delivery is allocated to a buyer on the 1st day of the tender and delivery period, on the immediate succeeding day he is required to submit a request to the Exchange in the specified format stating that he is not willing to lift delivery and wishes to settle the contract as per the Due Date Rate. In such a case, such buyers are required to settle the contract as per the Due Date Rate and also to pay a penalty of 1 % of the Due Date Rate. In such case, the seller is informed by the Exchange by the next day, that is 3rd day of the tender period, asking him not to deliver the commodity, and to settle the contract with the buyer as per the Due Date Rate. In addition to above, the seller gets 90 % of the penalty amount recovered from the buyer so as to compensate him. 

Payment by the buyer: In case the buyer does not exercise his option as stated under point no 5 above and the delivery is allocated to him, he is required to make payment within 2 working days of allocation of delivery to him. The payment is to be made as per delivery quantity allocated to him multiplied by the closing price of the maturing contract. The buyer will also be required to submit necessary forms for sales tax purposes. If the buyer is located in the same place, where seller is giving delivery and the buyer also has sales tax registration, then no sales tax is payable by the buyer. However, if the buyer is from a different state and he wants the bill to be issued in favour of such buyer being inter state delivery, then he is required to pay CST of 1 %. In case a buyer fails to make payment, the action relating to his declaration as defaulter is initiated. For the period between 1st day of tender period to the actual date of delivery, the MTM calculation and corresponding pay in / pay out will continue.

Clearing Agents of buyers and sellers: For the purpose of effecting delivery of gold and silver, every member will be entitled to appoint a maximum number of two Clearing Agents, who will be entitled to receive and deliver precious metals on behalf of such member. These Clearing members have to submit requisite form, four photographs, a copy of their ration card/ driving license or other document, as may be specified by the Exchange. The Exchange will issue a photo identity card for each Clearing Agent, which will be duly signed and stamped by the Exchange and the member with lamination. At the time of giving or receiving delivery of precious metal, the Clearing Agent will be required to show this Card to Group 4 Securities persons. A list of all such Clearing agents will be forwarded by the Exchange to Group 4 Securities in advance. 

Intimation about the Clearing Agents: By 5.00 pm on the 2nd day of tender period, the member will be required to forward name of the Clearing agent, who will visit Group 4 Securities office for giving or lifting delivery. This information will be compiled by the Exchange and will be forwarded to Group 4 Securities.

Delivery: On such delivery days, the seller will be required to deliver gold at Group 4 securities facilities at specified centers. Such specified centers are Mumbai and Ahmedabad. The seller has to submit the delivery alongwith bill made in favour of individual buyers.

Non performance by the seller: In case a seller who has submitted tender notice fails to deliver gold on 6th working day as per schedule stated above, the contract will be closed out as per the Due Date Rate and a penalty of 1% will be imposed on him, out of which 90 % will be paid to the buyer, while 10% will be appropriated by the Exchange. 

Tolerance limit: In respect of gold, there will be no tolerance in respect of weight. It must be imported gold bar of 1 Kg weight. 

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.

Validation process: On receipt of delivery, the Group 4 personnel will do the following validations:
a. whether the person carrying gold / silver is the designated clearing agent of the member;
b. whether the selling member is listed in the statement forwarded by the Exchange as a delivering member
c. whether the quantity being delivered by the seller is exactly the same quantity as communicated by the Exchange;
d. whether the serial no of all the bars is mentioned in the seller's bill;
e. whether the original certificates are accompanied with the gold and silver bars
f. whether the serial nos listed in the certificate tally with the nos written inscribed on the bars
g. whether the seller has issued individual bills of relevant quantity in favour of each of the buyer
h. Any other validation check, as they may desire

Delivery process: In case any of the above validation fails, the Group 4 securities will contact the Exchange office and take any further action, only as per instructions received from the Exchange in writing. If all validations are through, then the Group 4 personnel will put the gold in bag/s and seal the same in front of the customer with unique tamper-proof seal/s. Then the custodian of Group 4 will cut a serially numbered Group 4 receipt (in triplicate consisting of White, Pink and Yellow slips), get the signature of the seller's clearing agent and signing the same for authorization, hand over the Pink slip to seller's clearing agent, send by courier the third copy (Yellow Colour slip) while retaining the White for Group 4 records. The receipt details in full are then entered into the package supplied by MCX and is uploaded to MCX server for authorization and further processing. Group 4 in front of the selling member's clearing agent deposit the said metal into a bag and seal it with a tamper-proof unique numbered Group 4 seal and give a copy of the same to the customer, send the second one to MCX for its records and third copy of the receipt for its record. The sealed bag will be vaulted in the same condition with Group 4 until further delivery to MCX customer. Even in case if the metal has to be sent to various destinations, it shall be done in same bag only. Each bag shall not contain any more than 20 Kgs of Gold and where the depository is more than 20 kgs., the same will be stored in multiple bags with each having individual seals with unique number. If the metal delivered by a seller has to go to 10 different buyers, 10 individual packets will be made for each buyer and unique numbers will be assigned to each packet. On this basis, it would also be apparent that how much quantity is to be released on the same day to the buyer at the same location and how much quantity has to move to other delivery centers, because the buyers are located in those centers.

Cost of transportation, insurance, etc.: The cost of transport, insurance, etc. for getting the delivery upto the Group 4 Securities delivery point will be born by the seller. If he keeps the delivery in the Group 4 Securities for some days prior to the date of actual delivery, then the vault charges, insurance, etc. upto the date of physical delivery will be born by the seller. The vault charges, insurance, etc. with effect from such date of physical delivery will be born by the buyer. The cost of movement of goods, air freight, Group 4 managerial charges, etc. will be born by the buyer. In case delivery of more than one buyer is moving in one consignment between one delivery center to another delivery center of Group 4 securities, then the cost will be shared by all such buyers, which will be intimated to them by the Exchange. If the buyer keeps the delivery for more days after the scheduled delivery out day, he will bear the cost of vault charges, insurance, etc. If the buyer requests for taking delivery at his office, the cost of transportation, insurance, etc. between Group 4 securities delivery center to his office will be born by the buyer. In the process of delivery movement, if any other cost is incurred, the Exchange will allocate the same among the buyers and sellers, as the case may be. 

Release of delivery to the buyer: The buyers after making payment for the delivery, will be entitled to lift delivery from Group 4 office on any working day . For such delivery, which has to be transported from other delivery centers, they will get delivery within two days of effecting payment. At the time of taking delivery, the buyer can open the sealed packets in front of Group 4 personnel. If he is satisfied with the quantity, weight and quality of material, then he will issue receipt of the metals instantly. If he is not satisfied with the metal, he can insist for assaying by any of the approved assayers available at that center. If the buyer chooses for assaying, Group 4 person will carry the goods to the assayers facilities, get it assayed and bring it back to Group 4 facilities alongwith assayer's certificate. If the assayer's certificate differs from the certificate submitted by the seller in respect of quality or weight materially, then the buyer and seller have to mutually negotiate the final settlement proceeds within 1 day from receipt of assayer's report, however if they do not agree on any mutually acceptable amount within 1 day, then the Exchange will send the goods to a second assayer and in that case, the report received from such assayer will be final and binding on both buyer and seller. The cost of first assaying as well as cost of transportation from Group 4 to assayer's facilities to and fro will be born by the buyer, while the cost of second assaying, if any, will be equally divided between the buyer and seller. The vault charges during such period of first and second assaying, if any, will be born by both the buyers and sellers equally. 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 bill made by the seller. 

Release of payment to the seller: If delivery is released to the buyer in the manner stated above and he does not opt for assaying, the payment is released to the seller once delivery is given to the buyer. If the delivery is released to the buyer after two days due to inter city movement and the buyer does not opt for assaying, then payment is released to the seller on completion of delivery process. If the buyer opts for assaying or if the Exchange goes for the second assaying, then payment is released to the seller after the process of assaying and settlement relating thereto is over.

Due Date Rate: In order to settle all outstanding position not settled by way of delivery, Due Date Rate is calculated on 5th day of the month (if 5th is a holiday, then preceding working day). This is calculated by way of taking simple average of last 5 days of the spot market. For the purpose of gold, the spot market price will be obtained from the whole sale market of Mumbai. For obtaining the prices of spot market, the Exchange will take the prices from a panel of dealers, importers and traders and take the average out of 3 prices taken on a day from three different entities. In addition to this, the seller who does not deliver gold on 6th day of the maturity month (subsequent working day, if 6th is a holiday) will be subject to a penalty of 1%, out of which 90% will go the buyer, who could not receive delivery and 10% will be appropriated by the Exchange. 

Applicability of Business Rules: The general provisions of Business Rules relating to the procedures not specifically laid down in this circular and decisions taken by FMC/ Board / Executive Committee in respect of matters specified above will apply mutatis mutandis.