International Commodity Exchange Division

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REQUIREMENTS OF FOREIGN PARTICIPANTS IN IPSTA I.C.E. DIVISION
 
TRADING PATTERN IN IPSTA I.C.E. DIVISION
 

 

REQUIREMENTS OF FOREIGN PARTICIPANTS
(Member OR Registered Non-Member Client)
IN IPSTA INTERNATIONAL COMMODITY EXCHANGE DIVISION :

  1. Application form of the Exchange for Membership (Form A) duly filled in
    four sets.
  2. Admission fee and annual fees to be paid.
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Category

Net owned funds
requirements (US$)

Admission fee (Rs)

Annual fee
(Rs)
Composite Clearing Member (CCM)

50,000

50,000

5,000
Composite Trading Member (CTM)

35,000

35,000

3,500
Trading cum Clearing Member (TCM)

20,000

20,000

2,000
Trading Member (TM )

8,000

15,000

1,500
Institutional Clearing Member (ICM)

N.A.

100,000

10,000
Registered Non-Member (RNM)

Not required

Rs. 1,000

Rs. 600

To become a CCM or a TCM, the applicant should get the approval of the Foreign Investment Promotion Board (FIPB) of the Government of India and be registered as a company in India. FCCCI will present the application to FIPB. The applicant should subscribe to the equity of FCCCI. Clearing members alone need to subscribe to the equity of FCCCI.

Category

Minimum equity (Rs)

Maximum equity (Rs)
Composite Clearing Member (CCM)

250,000

1,250,000
Trading cum Clearing Member (TCM)

100,000

240,000
Institutional Clearing Member (ICM)

1,000,000

5,000,000

To become a CTM or a TM, the applicant need not apply to FIPB. A branch office would be sufficient; registration as a company is not mandatory.

To become an RNM, the applicant need not be registered as a company nor have a branch office in India.

  1. Application form of the Exchange for Registered-Non-Members (RNM), duly filled (Form A) in triplicate.
  2. Registration and processing fee of US$185 for the Forward Markets Commission for five years and registration fee of US$21 for the Exchange (RNM) for one year. Subsequently, renewal fee of US$13 is payable per annum.

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TRADING PATTERN IN IPSTA INTERNATIONAL COMMODITY EXCHANGE DIVISION :

  • Trading takes place according to bye-laws, rules and regulations of the Association.
  • 18 Contracts are traded, three for each alternate calendar month, MLS ASTA, VB ASTA and FAQ quality for February, April, June, August, October and December.
  • All contracts are fully guaranteed by the First Commodities Clearing Corporation of India Ltd. leading to no risk by default.
  • Unit of trading is 15 tonnes for MLS ASTA and VB ASTA and 12.5 tonnes for FAQ and price quote shall be for FOB contract.
  • The trading limit per member is restricted to 225 tonnes.
  • Prices are quoted in US$ per Tonne.
  • All margins and variation margins are collected and disbursed in US Dollars.
  • A Transaction Fee of 90 cents per transaction will be collected by the Exchange for MLS ASTA and VB ASTA and 75 cents per transaction for FAQ.
  • Registered Non member clients can trade and deliver through any Composite Clearing Members or Composite Trading Members of the exchange after entering into an agreement for the same.
  • Daily clearing (mark-to-market) allows members/non member clients to collect/disburse their net profits/losses daily through the clearing banks, as per variation in prices. Swift transfer of funds is possible through hi tech clearing banks.

DELIVERY PATTERN IN IPSTA

  • The open position at the end of the contract results in actual physical delivery.
  • The delivery is FOB or can be Ex- Designated Warehouse at the option of the buyer.
  • Delivery centres include Kochi, Panjang, Singapore, Kuching, Belem and Bangkok.
  • The basis for MLS ASTA and VB ASTA grades shall be pepper with extraneous matters permissible up to 1% by weight; light pepper permissible up to 2% by weight; moisture permissible up to 12% by weight; mould visible to the naked eye permissible up to 1% by weight; mammalian excreta permissible up to 2.2 mg per kg (1 mg per pound); other excreta permissible up to 11.0 mg per kg (5 mg per pound); and insects permissible up to 441 per 100 kg (2 per pound).
  • The basis for FAQ quality black pepper grade shall be with light pepper permissible up to 10%, moisture permissible up to 13%, extraneous matter permissible up to 2%, mould permissible up to 2% and free from oil wash.
  • The quality for delivery will be certified by internationally renowned independent testing agency.

If you are interested in getting the application forms for membership/ non-member client in IPSTA International Commodity Exchange Division, kindly click here.