Shankar Kapas Contract Specifications (Applicable for contracts expiring in October 2015 and thereafter) Rajkot (Exclusive of VAT)

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1 Shankar Kapas Contract Specifications (Applicable for contracts expiring in October 2015 and thereafter) Type of Contract Name of Commodity Ticker symbol Trading System Basis Unit of trading Delivery unit Quotation/base value Tick size Futures Contract SHANKAR Kapas SHANKRKPAS NCDEX Trading System Rajkot (Exclusive of VAT) 1 lot (200 maunds of 20 kg each i.e. 4 MT) 1 lot (200 maunds of 20 kg each i.e. 4 MT) Rs. Per 20 kg 50 paisa Raw Cotton 1. Staple Length Basis : mm Tenderable Range: 28 mm and above and not deliverable below 28 mm Premium/Discount: Premium of Rs. 2 per 20 kg for lengths between mm Additional Premium of Rs. 2 per 20 kg for lengths between mm Additional Premium of Rs. 2 per 20 kg for lengths between mm There would be no additional premium for lengths above 31 mm Quality specification 2. Outturn Minimum 35% with no premium above 35% and not Tenderable below 35% 3. Trash content: Maximum 3% Tenderable Range: Maximum up to 3% with no premium below 3% 4. Micronnaire: Basis: Micronnaire Tenderable range of Micronnaire with no premium/discount. 5. Strength: Basis: Minimum 29 GTex Tenderable above 29 GTex with no premium or discount. Strength less than 29 GTex is not deliverable on Exchange platform.

2 6. Reflectance (Rd value) Deliverable Range: Yellowness (+b value) Deliverable Range: Moisture: Max. 8% with no premium below 8%. Quantity variation Trading Months Delivery center +/- 1% for total weight of each deliverable lot October, November, December, January, February, March and April Rajkot (Gujarat) As per directions of the Forward Markets Commission from time to time. Currently: Trading hours Mondays through Fridays A.M. to 9.00 / 9.30* P.M (*during US daylight saving period) On the expiry date, contracts expiring on that day will not be available for trading after 5 P.M. The Exchange may vary above timing with due notice. Delivery specification No. of active contracts Opening of contracts Closing of contract Daily Price Limit (DPL) Upon expiry of the contracts, the delivery position would be arrived at by the Exchange based on the information to give/ take delivery furnished by the sellers and buyers as per the process put in place by the Exchange for affecting physical delivery. As per Launch calendar As per Launch calendar All open positions will be settled as per general rules and product specific regulations The DPL is (+/-) 4%. If 4% DPL is hit on a day, no trading will be allowed beyond 4%. However, trading will continue within (+/-) 4% DPL on that day. If a contract closes at 4%, then on the subsequent day, for all the contracts in the commodity, the DPL will be (+/-) 4%, and if it is hit, the DPL will be further relaxed by 2% with a cooling off period of 15 minutes in between. Trading will not be allowed during the cooling off period. If 4+2% DPL is also hit, no trading will be allowed beyond 6%. However, trading will continue within (+/-) 6% DPL on that day. If a contract closes at 6%, then on the subsequent day/s, for all contracts in the commodity, the DPL will be 4% and if it is hit, the DPL will be further relaxed by 2% with a cooling off period of 15 minutes in between. Trading will not be allowed during the cooling off period. Once all contracts

3 in the commodity close below 4+2% DPL i.e. below 6% on the subsequent day/s, the DPL on following day/s will be reset to (+/-) 4% for all contracts in the commodity. If the DPL is hit in a contract of a commodity, then trading will be stopped for 15 minutes only in that contract of the commodity and trading will continue in other contracts of that commodity as usual. The DPL on the launch (first) day of new contract shall be as per the circular no. NCDEX/RISK-027/2011/284 dated September 15, Limits on open positions for aggregate as well as near month will be across all contracts and all Exchanges Member-wise: 2,50,000 MT or 20% of the total market wide open position in the commodity, whichever is higher Client-wise : 25,000 MT or 5% of the total market wide open position in the commodity, whichever is higher Position Limits The above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange will, on a case to case basis, decide the hedge limits. Please refer to Circular No. NCDEX/CLEARING-018/2014/228 dated July 22, For near month contracts: Applicable from one Month prior to expiry date Member: 1,25,000 MT or 20% of the total near month market wide open position in the commodity, whichever is higher Client: 12,500 MT or 5% of the total near month market wide open position in the commodity, whichever is higher Special margin Delivery logic Final Settlement Price In case of unidirectional price movement/ increased volatility, an additional/ special margin at such other percentage, as deemed fit by the Regulator/Exchange, may be imposed on the buy and the sell side or on either of the buy or sell sides in respect of all outstanding positions. Reduction/removal of such additional/ special margins shall be at the discretion of the Regulator/Exchange. Intention matching The Final Settlement Price (FSP) shall be arrived at by taking the simple average of the last polled spot prices of the last three trading days viz., E0 (expiry day), E-1 and E-2. In the event of the spot prices for any one of the E-1 and E-2 is not available, the spot price of E-3 would be used for arriving at the average. In case the spot prices are not available for both E-1 and E-2, then the average of E0 and E-3 (two days) would be taken. If all the three days prices viz., E-1, E-2 and E-3 are

4 not available, then only one day s price viz., E0 will be taken as the FSP. Maximum Order Size 50 Lots i.e. 200 MT Minimum Initial Margin 5% Contract Launch Calendar Contract Launch month Contract expiry month April 2015 October 2015 May 2015 November 2015 June 2015 December 2015 July 2015 January 2016 August 2015 February 2016 September 2015 March 2016 October 2015 April 2016 April 2016 October 2016 May 2016 November 2016 June 2016 December 2016 Members and market participants who enter into buy and sell transactions may please note that they need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives, notifications of the Exchange as well as of the Regulators, Governments and other authorities. It is clarified that it is the sole obligation and responsibility of the Members and market participants to ensure that apart from the approved quality standards stipulated by the Exchange, the commodity deposited / traded / delivered through the approved warehouses of Exchange is in due compliance with the applicable regulations laid down by authorities like Food Safety Standard Authority of India, AGMARK, BIS, etc. as also other State/Central laws and authorities issuing such regulations in this behalf from time to time, including but not limited to compliance of provisions and rates relating to Sales Tax, Value Added Tax, APMC Tax, Mandi Tax, LBT, Octroi, Excise duty, stamp duty, etc. as applicable from time to time on

5 the underlying commodity of any contract offered for deposit / trading / delivery and the Exchange shall not be responsible or liable on account of any non-compliance thereof.

NCDEX SPOT Exchange Limited Circular to all Trading and Clearing Members of NCDEX Spot Exchange Limited

NCDEX SPOT Exchange Limited Circular to all Trading and Clearing Members of NCDEX Spot Exchange Limited Circular No: NCDEX SPOT/TRADING/028/2012/036 Date : October 23, 2012 Subject : Contract Specifications