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| PROCESSES .... |
Process of Spot Trading:
- Commodity to be traded is received by IEM at any one of its warehouses with invoices of manufacturing unit only.
- On receipt, the commodity is weighed, unloaded, assayed and stocked and an intimation of the receipt of goods of acceptable quantity is sent to the concerned TCM of NSPOT.
- The TCM then deposits the commodity in the Warehouse Management System of NCDEX Spot against the selling party.
- The concerned warehouse of IEM locks the commodity so deposited against the seller.
- Seller can then place his bids for the commodity in stock, through the on line trading system.
- Buyers can also put their bids for the commodity on offer through their respective trading system, subject to availability of required margins with NSPOT.
- On match, the trade is affected and is locked.
- The buyer than provides the balance funds on or before the pre-decided settlement day. The settlement day is arrived at on the basis of the type of contract entered into, typically either T+3 or T+9.
- All transactions on NSPOT are conducted at basic price only (Naked of duty).
- On receipt of funds from the buyer, the clearing system transfers the material to the buyer in the WMS system.
- Thereafter authorized person from the buyer can collect the material from the warehouse on presentation of necessary identity documents.
- Duty and taxes on a transaction are charged separately as applicable from time to time. For this purpose, IEM carries out tax settlement one day after the date of settlement under intimation to NCDEX-SPOT.
- IEM also raises debit notes for buyers and sellers for services rendered, including service tax and other applicable cess thereon.
A Flow Chart Illustrating the process is shown on Next Page.
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