FAQs

• The following types of entities are eligible to become members of Ace:
  

  • Proprietorship Firm
  • Hindu Undivided Family(HUF)
  • Registered Partnership Firm
  • Registered Limited Liability Partnership
  • Private Limited Company
  • Public Limited Company
  • Co-operative Societies

• The membership of the Exchange is open to all market participants and depending on their specific needs, following are the categories of membership:
  

  • Trading Member(TM)
  • Trading cum Clearing Member (TCM)
  • Institutional Trading cum Clearing Member (ITCM)
  • Professional Clearing Member (PCM)

• Please click here to view the latest membership charges

• No, the membership availed at the first instance is composite one and will be valid for all the products which are traded on Ace.

• It is desirable; however, we will consider waiving the same in case of the concerned person having adequate experience in commodity and financial markets on a case to case basis

• The main objective clause to be inserted in the Memorandum of Association is:
  
  
  • To carry on the business of trading in agricultural products, metals including precious metals, precious stones, diamonds, petroleum and energy products and all other commodities and securities, in spot markets and in futures and all kinds of derivatives of all the above commodities and securities.
  • To carry on business as brokers, sub brokers, market makers, arbitrageurs, investors and/or hedgers in agricultural products, metals including precious metals, precious stones, diamonds, petroleum and energy products and all other commodities and securities, in spot markets and in futures and all kinds of derivatives of all the above commodities and securities permitted under the laws of India.
  • To become members and participate in trading, settlement and other activities of commodity exchange/s (including national multi - commodity exchange/s) facilitating, for itself or for clients, trades and clearing / settlement of trades in spots, in futures and in derivatives of all the above commodities permitted under the laws of India.

• An existing stock broking company is not permitted by SEBI to take membership of Commodity Exchanges in the same name and they need to form a separate entity for seeking membership of Ace.

• The membership forms received with the requisite documents will be processed at our end and in case of any additional information is required, the same will be called for. If found in order, the applicants will be subsequently called for personal interaction with the Membership Committee of Ace. Successful applicants will then be intimated by Ace.

• Yes, the address of the firm as mentioned in the partnership deed shall be accepted provided that Partnership Deed has been duly registered with Registrar of firms.

• No, the same is not acceptable. A registered partnership deed is acceptable; however it is not mandatory to register the deed under the provision of the Indian Partnership Act, 1932.

• Prior approval for change in shareholding / sharing pattern is required wherein the changes result into change in dominant promoter group.
  
  No prior approval for change in shareholding (for corporate) / sharing pattern (for partnership firms) is required if such a change:
  

  • Does not alter the shareholding / share of DPG constituents in percentage terms,
  • Does not lead to addition or deletion of a DPG constituent and
  • Does not result in change of management / control.

• An applicant for membership is required to identify a set of maximum four individuals termed as the "Dominant Promoter Group" who are required to hold minimum 51% equity stake / sharing ratio directly or indirectly in the member company / partnership firm for a minimum period of at least three years from the date of grant of membership. At the end of three years DPG can be changed with exchange's prior approval

• DPG should hold minimum 51% of the paid up equity capital / sharing ratio in a company/partnership firm.

• The shareholders who are close relatives namely parents, spouse, children (and their descendants), brothers and sisters can provide support by giving an irrevocable, unconditional undertaking in the prescribed format of the Exchange

• No

• DPG can be a combination or either of direct and indirect holding of DPG constituents in the member company. For example, Mr. Arun is holding 40% stake in Copper Industries Ltd. ABD industry group which is owned by Mr. Arun's father, mother, brother and wife hold 60% in Copper Industries ltd together they own 100% in Copper Industries Ltd.
  
  Mr.Arun decided to become a member and bought 39% stake in his individual capacity in Superman Commodity trading ltd which was an existing member with a commodity exchange. ABD industry group also bought 25% stake in Superman Commodity trading ltd
  
  Arun identified himself as a DPG by stating the following
  
  

  Particulars	Share holding calculation
  Share holding in individual capacity of Arun in Superman commodities ltd	39%
  ABD has given a undertaking for corporate support in favor of Arun	15%*
  Total Share holding	54%

  
  
  *((60*25)/100 = 15%)
  If the entire stake of the member company is held by a corporate, the DPG can be identified from the parent company in the same manner as identified for a member company.
  
  The DPG shareholders will have to submit corporate support undertaking along with the board resolution for corporate support to form DPG in Member Company.

• The member has to forward a request to Membership Department with covering letter and board resolution.

• The net-worth can be calculated by 2 methods.Click here for the formats and methods of calculation.

• The certificate and statements need to be certified by a Qualified Chartered Accountant who has audited the same.

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Collateral

• Collaterals are assets that are deposited / pledged / offered by a member to the exchange towards capital requirement / Margin. Collateral is a form of security to the exchange in case the member fails to make good his obligation. Collateral becomes subject to seizure on default. For example, the securities / cash deposited as collaterals in a Member’s account can be used towards payin in case of default

• Collateral security could be in the following forms:

  • Cash
    • DD
    • Cheque(subject to clearance)
  • Cash Equivalent
    • Bank Guarantee
    • Fixed deposit receipt
  • Approved list of Demat Shares & Securities
  • Approved Demat commodities deliverable on Ace platform.

  The above types of collaterals are further explained below

• Collateral security could be in the form of
  

  • Cash
    DD / Cheque (subject to clearance)
  • Bank guarantee (BGs) of Scheduled banks
    A BG is issued by a bank on behalf of a broker / member in favour of the Exchange in lieu of security deposit. BG can be provided to the applicable extent as laid down by the Exchange.
  • Approved listed shares and securities
    Members can deposit equity shares of approved companies in electronic form ('Demat securities') in the designated depository accounts maintained by the Custodian(s) approved / appointed by the Exchange. These securities shall be pledged in favor of Ace Derivatives and Commodity Exchange Ltd. (the Exchange).
  • Approved Demat - Commodities
    Only those commodities which are traded on the Exchange and stored at the Exchange accredited warehouse / vault.

• Base Minimum Capital means and includes the initial security deposit, additional security deposit, margin money, any other credit amounts, bank guarantee, and other collateral, by whatever name called, specified to be part of the base capital.

• BMC can be provided in Cash Equivalent:
  

  • Fixed deposits Receipts (FDR) of approved banks.FDR issued by Co-operative bank will not be accepted.
  • Bank guarantee (BGs) of Approved banks.

• Please click here to refer to Circular No: ACE/C&S-004/2010/025 and Circular No: ACE/C&S-004/2011/018 for the same

• The lock in period for the interest free security deposit fee is three years (3 yrs).

• The member may have to provide Additional Base Capital (ABC) in order to get higher limits to trade and settle. The same can be provided to the exchange in cash equivalent.

• ABC can be provided in the following forms:
  

  • Cash Equivalent
  • Fixed deposits Receipts (FDR) of approved banks. FDR issued by Cooperative bank will not be accepted.
  • Bank guarantee (BGs) of approved banks.
  • Approved listed shares and securities.
  • Approved Demat Commodities which are traded on the Exchange and stored at the Exchange accredited warehouse / vault.

• The members are required to send all the collateral related documents to the below mentioned address:
  Clearing and Settlement Department
  Ace Derivatives & Commodity Exchange Ltd 401, Infinity Park, Bldg no 4,
  General AK Vaidya Marg Dindoshi, Malad(E), Mumbai 400097.

• Please click here to refer to the procedure of increasing ABC by way of cash.

• The members who wish to release the Additional Base Capital (cash deposit) will have to fax their request to the Exchange (Please click here to view the details.)

• Members who wish to release the Bank Guarantee / Fixed Deposit Receipt for Base Minimum Capital/Additional Base Capital (BMC / ABC) will have to fax their request to the Exchange. (Please click here to refer to the Collateral formats)

• Please click here to view the approved banks for FD and BG.

• The Bank Guarantee should be typed on a non-judicial stamp paper of value Rs. 300 or the value prevailing in the state where it is executed, whichever is higher.

• The confirmation of the Bank Guarantee by the issuing banks should be submitted to Ace within 21 days of receipt of the same. In case the confirmation is not submitted by the issuing bank, the Bank Guarantee so submitted will be treated as invalid till confirmation is received and the member's collateral shall be duly reduced.

• Daily Settlement Obligation report will be provided to members wherein detailed information about collaterals submitted by members would be given.

• The Exchange will send reminder letters one month and 15 days prior to the expiry of the collateral, so that members get sufficient time to renew the collateral. The letters will be sent to members through courier.

• Members who wish to release the Securities / Demat commodities from Additional Base Capital (ABC) will have to fax their request to the Exchange.

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Fund Settlement

• The members can trade on the Exchange from 10.00 A.M to 5.00 P.M. from Monday to Friday & 10.00 A.M to 2.00 P.M on Saturday. The timings would change to 10.A.M. to 11.30 P.M. for International referenceable commodities. (During daylight saving, the timings would be 10.00 AM to 11.55 PM for International referenceable commodities)

• Ace would look into the clearing of the trades and settlement of trades itself.

• Marking to market refers to the computation of the profit or loss that a Member realizes due to the continuous movement of price of the Commodity.

• In simple terms the mark to market would be computed as under:
  

  • On the day of entering into the contract and the position left open, MTM is the difference between the entry value and daily settlement price for that day
  • On any intervening days, when the Member holds an open position, MTM is the difference between the daily settlement value for that day and the previous day's settlement price.
  • On the expiry date if the Member has an open position, it is the difference between the final settlement price and the previous day's settlement price.

  MTM value for member is calculated on a daily basis. Please refer example given below.
  
  Mark to Market profit and loss calculation
  Contract multiplier for the contract is 100
  
  

  Day and Time	Price in Rs	MTM – Buyer	MTM- Seller
  Day 1 (11 AM)	100 – Entry Price
  Day 1(End of Day)	105	(105 –100)*100 =+5*100 = 500	(100 – 105)*100 =-5*100 = -500
  Day 2(End of Day)	98	(98 – 105)*100 =-7*100 = -700	(105 – 98)*100 =+7*100 = 700
  Day 3(End of Day)	102 - Exit Price	(102 – 98)*100 =4*100 = 400	(98 – 102)*100 =-4*100 = -400
  Cumulative MTM over a period of time		(+5 - 7 +4)*100 = 2*100 = 200	= (-5 + 7 - 4)*100 =-2*100 =-200

• The daily profit / losses of the members are calculated using the daily settlement price/ final settlement price (on expiry). The Daily Settlement Price / Final Settlement Price (on expiry) notified by the Exchange shall be binding on all Members and their constituents. The daily MTM profit / loss made by the members for the day would be paid or collected by exchanges on the next settlement day.
  
  The Members are intimated of the next day pay in / pay out amount through the Obligation File. The pay in amount along with the old shortages of the member will also be informed to the clearing banks.

• The following are the tentative timings for the settlements
  
  

  Particulars		1st Run	2nd Run	3rd Run	4th Run	5th Run
  Margin Call		8:45
  ABC	PayOut	9:15
  MTM	Payin	9:30	11:00	14.30(Monday to Friday) 13.00 ( Saturday)	16.00( Monday to Friday)	15.00( Monday to Friday)
  MTM	PayOut	12:00
  Delivery Funds	Payin	12:30	16:00
  Delivery Funds	PayOut	15:30 (also supplementary pay-in / pay-out)
  Delivery Commodity	Payin	12:15 (Physical)	12:30(Demat)	13:30
  Delivery Commodity	PayOut	16:00(Demat)	16:00(Physical)	16:30 (with held release pay out)

• The members have to open the below mentioned accounts with any of the empanelled banks for clearing purpose:
  

  • Settlement Account -For Daily Pay-In & PayOut from the exchange
  • Client Account – For making and accepting Pay-In & PayOut from the clients.
  • Own Account – For Proprietary transaction

• Every day after the close of market hours during the End of Day process, MTM profit / loss transactions are generated.

• MBT is the facility provided to the members for increasing the collaterals for trading purpose and fulfilling their MTM pay-in obligation.

• Manual Bank Transaction (MBT) would include the following steps:
  

  • The member will place the request through C&S interface provided by the exchange.
  • The bank will confirm or reject the transaction placed by the member after checking the availability of funds in member’s account.
  • Finally, the exchange will verify and confirm the transaction and accordingly the exposure will be given to the member.

• Yes, the clearing member can place the request for change in clearing bank. The following documents are required to be submitted:
  

  • A request from the member seeking permission to close clearing accounts with existing clearing bank and to open new clearing accounts with another clearing bank.
  • No Objection Certificate (NOC) letter from his existing designated clearing bank.
  • Once the above documents are received, Exchange will issue an introductory letter for opening of new clearing accounts to the new bank.

• The member can bring in funds in the multiple runs held later during the day. If the member does not settle the MTM obligation before the cut-off time set by the exchange, the shortage would be blocked from his total available collateral until the member makes good the obligation. If after blocking of MTM payin the collateral falls below the margin requirement the member may go in square off mode.

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Delivery and Settlement

• On expiry of any commodity contract the open interest is settled. The detail of the delivery and settlement is mentioned in the contract specification of all commodities.

• The different types of Delivery Logic are:
  

  • Both option
  • Seller option
  • Compulsory delivery

• Both option based contracts are contracts in which delivery of the commodity will take place only if both buyer and seller give their intention to give or take delivery of the same quantity on or before the expiry of the contract.

• A sellers option contract is a contract in which the delivery would be based on seller's choice. If the seller member provides intention to give delivery then the Exchange will allocate the delivery to the buyer member provided the intentions are received within five trading days prior to the expiry of the contract.
  
  The buyer will have to take delivery on compulsory basis of the commodity that has been allocated to him by the Exchange.

• Under contracts in Compulsory delivery, on the expiry of the contract all open interest position of the members will result in compulsory delivery. Even if the Exchange has not received any intention from members, it will still allocate the delivery against the counter parties on the end of expiry of the contract for all of the outstanding position.

• A seller member who intends to give delivery has to provide his intention on or before the start of the tender period in case of seller option & both option contracts i.e. on the date of intention.
  
  In case of compulsory delivery contract, the seller may or may not give the intention. All the outstanding open interest position will be compulsorily marked for delivery on the expiry of the contract.

• A Buyer member who intends to take delivery can give his intention on the designated dates.
  
  In case of Seller option contract, if the buyer gives intention then he is prioritized and the sellers' intention received (if any) will be matched first against such buyer who has given intention to take delivery.
  
  In case of compulsory delivery, all the outstanding open interest position will be compulsorily marked for delivery.

• The intention should be communicated to the Exchange through:
  

  • TWS
  • C & S Login

  This intention should reach the exchange within the stipulated time period.

• A daily obligation report is generated by the Exchange that has the details of the marked and settled quantity. The Exchange also provides a file, which the member can download & use in his back office software.

• • Initial Margin
  • Special Margin
  • Tender Period Margin
  • Delivery Period Margin
  • Additional Margin
  • Regulatory Margin

• For better capital efficiency, the Exchange shall consider the Base Capital deposits towards margin requirements. If the Member wishes to increase his positions, the Member can deposit Additional Base Capital in the formats prescribed by the Exchange from time to time.

• When there is excess volatility, Exchange may impose special margin of appropriate percentage, as deemed fit and proper on either long or short side in respect of all outstanding positions. This margin will remain till such excess volatility persists, after which the same will be relaxed.

• Tender margins shall be levied on contracts as specified in the product document. The tender margins shall be commodity specific and shall form a part of the contract specifications.

• Delivery Margin is levied on the open interest position that has been marked for delivery. After the delivery is marked Tender Period Margin is released and Delivery Period Margin is levied. It is levied on both the buyer and the seller member. This margin is released immediately on Payin done by the member.

• In addition to the above margins the Exchange may impose additional margins on both long and short side over and above the other margins, at such other percentage, as deemed fit. Removal of such Margins will be at the discretion of the Exchange

• Any margins levied by the Regulator shall be termed as Regulatory margins. Such margins may be levied on either or both long and short side of the contract. Regulatory margins may be collected in cash. Removal of such margins shall be at the discretion of the Regulator.

• The Exchange issues a settlement schedule on a monthly basis. It illustrates the date and time of various activities/process like intention submission dates, payin & payout dates of funds and commodities.

• The commodity pay-in should be done on or before the Schedule pay-in day. The seller has to submit documentary evidence of deposit of commodity in Exchange designated Warehouse along with the quality certificate and / or has to transfer the commodity ISIN to Exchange account at the time of schedule delivery payin.

• The Buyer member has to make available the funds in his bank settlement account on scheduled pay in day to enable the Exchange to collect the funds. Normally the funds pay in is on E+2 / E+1 basis where 'E' stands for expiry of the contract as per the respective commodities.

• The payout of the commodity will be done only on receipt of the funds payin from the buyer member.

• Payout of funds will be credited to Seller member on schedule pay out date in their bank settlement account. The funds pay out would be done on E+2 / E+1basis.

• These are the few variables that the Exchange has to compute at the time of the delivery. Since the actual quantity & quality may differ at the time of the delivery, the Exchange debits or credits such differences as per the schedule.

• Final Settlement Price (FSP) is the rate at which the outstanding open position of members is marked for delivery. The FSP will be arrived at as per the Contract Specifications.

• The exchange identifies delivery locations for commodities based on various parameters. These locations are known as Delivery Centre or Base Delivery Centre.

• In case of the intention received from buyer / seller to give or take delivery in an additional delivery centre, the Exchange will try to allocate such delivery against the intended counterparty from whom such intentions has been received. In case of contracts exclusive of taxes, buyer has to pay taxes, charges and levies in states and / or mandis where the delivery takes place.

• The members tendering delivery will have the option of delivering such grades of goods as permitted by the Exchange under the contract specifications. The Buyer will not have any option to select a particular grade and the delivery offered by the seller and allocated by the Exchange shall be binding on him.

• • Quality Certificates: Revalidation & Final Expiry
    The selling member has to forward the warehouse receipt along with a valid quality certificate (QC) to the Exchange authorities. In case the warehouse receipt is not accompanied by a QC, then such warehouse receipt will be treated as bad delivery by the Exchange.
  • Quality Certificates: Validity date
    It means the date up to which the commodity is valid for delivery on the Exchange platform at pay-in. After the expiry of validity date, the commodity should be either withdrawn from the warehouse or further revalidated if expiry date is not reached.
  • Quality Certificates: Final expiry date
    It indicates normal shelf life of the commodity, i.e. the commodity will be eligible for pay in up to that particular date. After reaching the expiry date, no further revalidation will be permitted on the same commodity and therefore, the depositor / holder of such commodities have to withdraw the commodity from the warehouse latest by the expiry date.

• In case if the seller member defaults or refuses to give the delivery till the schedule commodity pay in day, the Exchange will levy penalty to the member. These penalties may differ from commodity to commodity. The Exchange will close out the open interest position of the defaulting member as percentage of FSP as penalty. In addition to this penalty, the defaulting member has to reimburse the replacement cost as per the contract specification of the particular commodity.

• All charges which are incidental to the physical delivery are to be borne by the recipient and paid upfront at the time of delivery. The charges till the time pay-in is completed is to be borne by the depositor (seller) and after the pay-out is completed, the charges have to be borne by the buyer.

• There are 4 steps involve in demat process:
  

  • The warehouse on receipt of goods and duly filled Commodity Deposit Form (CDF) from the depositor enters the details in the System.
  • The designated Assayer tests the goods and enters the values of parameter tested in the same System.
  • The warehouse verifies and confirms the test results by the assayer and generates the corporate action. This corporate action is sent to depository for process through R & T agents.
  • The depository processes the corporate action on receipt of and gives credit to the client.

• The following type of Demat accounts may be opened:
  

  • Beneficiary account: A beneficiary account is a Demat account in the name of an Individual (single or jointly). Such an account could also be in the name of a Corporate, a partnership firm, a society and a trust. This account is to be used for transacting in commodity balances held by the account holder at the Exchange accredited warehouses. These commodity balances would have been in a physical process set up and represented through a warehouse receipt.
  • Pool Account: A Member pool account is a Demat account opened by the Clearing Members (TCM / ITCM / PCM). This account is opened to facilitate the payin and pay-out process. A Member is required to open both the pool account as well as a beneficiary account with each of the depositories and client of the Members is to open a BO Account with each of the depositories.

• Dematerialization of commodity refers to issue of an electronic credit, instead of issuing a vault/warehouse receipt, to the depositor / buyer of commodities

• Re-materialization refers to issue of physical delivery against the credit in the Demat account of a client.

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Sales Tax

• No. However, incase the member intends to undertake the delivery,then in such case he needs to have a proper local VAT registration, where the commodity is located or alternatively he can appoint a Clearing & Forwarding agent.

• The market participants intending to receive / give delivery should ensure that they have all the proper local VAT registration numbers / documents on or before the settlement of the delivery. Deliveries given by market participants who are not registered as per the local VAT guidelines or whose registration is not valid on the date of settlement / delivery shall not be liable to collect the VAT from Buyer members.
  
  Further the seller member would be obliged to fulfill any appropriate monetary compensation demanded by the APMC authorities / VAT department due to the unregistered sale. Or alternatively they can appoint a Clearing &Forwarding agent.

• VAT registration is to be obtained in the State where the delivery is affected.

• VAT rates for commodities differ from state to state. In the case of trades leading to delivery, VAT as per the delivery center / state will be payable. Many states as per the VAT laws, also provide for levy of additional tax, turnover tax, resale tax, etc. which may or may not be recoverable from the buyer depending upon the provisions of the local State VAT law

• It is obligatory on the part of the registered seller to collect the VAT from the buyer (in case the commodity is covered under the local VAT) and file the returns as per the defined procedure of the relevant local VAT laws.
  
  However, in the case of commodities which are liable to be taxed on purchases only, the buyer will have to discharge the liability for payment of tax. Further, payment of VAT to the seller will be the sole responsibility of the Buyer.

• VAT has to be paid by the buyer members on the day of VAT settlement only as specified in the settlement calendar. The local VAT levied would be based on the Final Settlement Price. The VAT settlement would be executed after three (3)days of pay in / pay out day.

• Yes, the participants can avail of the exemptions, if any. The buyers will have to indicate their ability to give supporting documents / certificates / declarations prescribed under the respective State VAT laws at the time of VAT settlement and will have to be submitted along with the Invoice. Submission of incomplete or invalid declarations / certificates shall not be considered for exemption/s. The said details of exemptions must be informed by the buyers to the respective sellers as well.

• At the time of VAT Settlement the buyers should have confirmed documented evidence regarding their eligibility to avail exemption/s for non-payment of VAT. The party will have to physically deliver the supporting documents to their respective counter party/ies within 5 business days and the clearing members are expected to forward the same to the relevant parties within the next two days thereafter.

• Yes, the client/participant will have to register in all those states where the delivery centres for the commodities is located. In case the registration is not availed the member is expected to appoint a Clearing & Forwarding agent.

• The files containing the amount of VAT collected / paid would be made available to the members over FTP.

• Yes, inclusive of all taxes and levies means VAT is added in the amount traded on the Exchange platform. Hence, to raise the sales invoice and to comply with local VAT requirements member / client or appointed agent has to be registered with local VAT authority.

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Service Tax

• Service Tax is a form of indirect tax imposed by the Government on specified services called 'taxable services'. For detailed information on this the Member will have to contact the local Services Tax Office.

• The service tax shall be paid by the service provider (i.e. the Member)

• 10.3 %( 10% ST, 2% EC and 1% SHEC) on the value of taxable service (i.e.) gross amount received by the service tax provider (member) for the services rendered by Member to the Client.

• Service Tax is payable on the amount actually received i.e. Total Amount received by the Member.

• All the persons providing taxable services shall register with the Central Excise Department of the concerned jurisdiction (Local Area). The registration shall be for each premise where billing is done. Only one registration is needed even if the service is provided in more than one premise provided the bills are raised in one place. If bills are raised in different premises, the registration should be obtained separately for each such premise where billing is done.

• Please get in touch with the relevant department of Govt. who will register and issue the service tax registration no. and certificate.

• The Service Tax shall be paid in the specified branches of designated banks.

• In the case of Individual or Proprietary Concern or Partnership Firm, the service tax shall be paid on a quarterly basis. The payment is to be made by 25th day of the month following the Quarterly Basis i.e. for Apr, May, June it should be paid by 25th July. For other categories such as companies, payment should be made on a monthly basis before 25th of the following month.

• In case of delay in payment of service tax, interest @1.25% per month or part thereof should be paid which may vary and will have to be confirmed with the relevant department.

• Yes, the Service Tax can be paid centrally if the accounting and billing process of the organization is done centrally

• No specific mention has been made in the Act. However, records like invoice copy and books of account which constitute sufficient evidence for calculation of service tax liability and payment of service tax shall be maintained.

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Stamp Duty

• The percentage of stamp duty can be checked with the relevant stamp duty authorities in the Stamp duty office of the relevant state.

• Stamp Duty is applicable on the Value of the Contract note and is calculated on the percentage specified by the stamp duty authority of the relevant state.

• Yes, it is to be paid state wise as all state govt. has specified certain value of stamp duty to be paid for futures contracts. (Some states may insist on payment of minimum stamp duty).

• No, he has to pay stamp duty whichever is higher and pay in the state which has higher stamp duty.

• Yes, as per Article 51 A of the amended Bombay Stamp Act, 1958, Members/Constituents in Maharashtra have been requested to pay stamp duty on all transactions in forward contracts in commodities at the rate of Re 1 per lac or part thereof. As stamp duty is levied under State law and if there is a contention by a member that the stamp duty is not leviable, members may raise contention before the State stamp duty authorities.
  
  Note: Kindly refer competent authorities of the respective States for details stated above.

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Technology

• The members can use the below modes of connectivity or a combination.
  • MPLS Leased Line(wireline)
  • MPLS Leased Line(wireless)
  • Internet VPN
  • VSAT(Very Small Aperture Terminal)

• The Exchange has tied up with Sify Technology Limited (Sify) for providing the connectivity to the members. The feasibility study of the last mile for the members shall be done by Sif.Depending on the outcome of feasibility study report,the last mile from the member's premise to the nearest Sify MPLS PoP can be on Tata, Bharti,MTNL/BSNL and Sify.
  

• The Exchange has made available the charges for the above stated connectivity in the following two circulars.
  
  

  Circular Date	Circular No.	Type	Title
  26/10/2010	003	Technology	VSAT Connectivity
  26/10/2010	002	Technology	Nation Wide Connectivity

  
  
  Any change will be intimated through an exchange circular

• The member has the freedom to choose the mode of connectivity with the Exchange.The Exchange recommends wireline or wireless leased line connectivity as a stable connectivity.
  

• The member needs to make the payments for the connectivity in advance by the Demand Draft/Cheque favoring Sify Technologies Limited.
  

• The minimum PC requirement is as mentioned below
  
  

  Processor : Intel® Pentium® 4 or Intel Celeron® (or compatible) 1.3GHz processor or higher (dual-core processors and those with Hyper-Threading Technology supported)

  • Operating System: Microsoft® Windows® XP service pack 2 or Windows 7
  • RAM :512MB or above
  • Hard-Disk space: 2GB of available hard-disk space
  • Monitor: 15" Color monitor with 1,024x768 monitor resolution, 16-bit color video card
  • Internet Explorer 7 or above for CNS URL

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