NATIONAL COMMODITY & DERIVATIVES EXCHANGE LIMITED Circular to all Trading and Clearing Members of the Exchange Circular No: NCDEX/CLEARING-019/2012/250

This is in continuation of our circulars in respect of penalty for failure to meet delivery obligations in compulsory delivery contracts. It is hereby clarified that the differential penalty collected from the defaulting seller member, in case the average of three highest of the last spot prices of 5 (five) succeeding days after the Tender Date / Expiry of the contract (T/E + 1 to T/E + 5 days) is higher than Settlement price / Final Settlement Price, shall continue to be paid to the buyer member. These conditions have already been mentioned in the product notes of individual commodities.