Forward Markets Commission has accorded in principle approval for the following national level multi commodity exchanges in the country apart from NCDEX.

National Commodity & Derivatives Exchange Limited

Whether the networth of the holding company will be taken into consideration for the same? Who will certify the various certificates, which are required to be certified by the auditor of the company? When is the security deposit eligible for refund in case of surrender?

Are the course materials available for the proposed exam to be undertaken by the core dealer? Whether we can apply for the membership of NCDEX in the same name in which we are holding the membership of NSEIL? Whether exposure will be allowed against base capital and collateral?

Please indicate the permissible brokerage structure and brokerage pattern? Is there any additional cost towards acquiring membership in addition to what has been specified in the application form? Are the memberships to be taken afresh for each of the products to be traded in NCDEX from time to time? What should be the main objective clause in the Memorandum of Association to aid in trading in commodity futures?

At what point of time one has to comply with the Net worth requirements? Can a partnership deed be used for address proof for partnership firm's registered office address? IF Partnership Deed is notarized, in that case is it acceptable? After placing a STOP Loss order, can it be seen in Pending orders screen F3?

What should be the difference between Trigger Price and Limit Price? What are the messages that will be sent to the front end on Order confirmation, Triggered, traded, Modified, Rejected and Cancelled? Will the User get a message if the CM cancels or modifies an order? Will a STOP Loss orde r be carried forward to the next day if it doesn't trigger or get traded? How would a seller get the electronic balance for the physical holdings?

Can commodities be re-deposited in the warehouse after the validity period of the assayer's certificate? Is there a facility of buy back of VSAT in case of surrender of membership?

What are the guidelines for issue of advertisement by the members? Whether prior approval of the Exchange is required for issue of advertisement? Can the logo of the Exchange be used by the member for issue of advertisement, use on letter head, visiting cards or website of the member? Is there any restriction on the members to carryout any activity other than trading on the Exchange platform like trading in securities?

What are the guidelines for appointment of Compliance Officers by the members? Can a member enter into a common member client agreement with the client for all the Exchanges?

What are the guidelines issued by the Exchange for issue of contract notes? Are all the members of the Exchange required to take fidelity insurance? What are the guidelines for display of details at member's office? What are the guidelines for portfolio management services by the members?

What are the guidelines for Brokerage to be charged by the member? What are the guidelines for trading in in-active client codes by the member? Is sales tax registration necessary for those commodities which are inclusive of all taxes and levies?

Where can a person verify the percentage of stamp duty applicable on futures contract? Can a member pay stamp duty in states other than where the client is registered and trading? Can a member pay stamp duty of all his clients at one location? If Stamp Duty is applicable in two states, one where the Client is registered and the other i.

On what basis service tax is payable - on the amount billed or received? Whether registration should be done for each service provided by the service provider? In case of delayed payment, whether interest is to be paid? What are the records to be maintained by the service provider member? Which are the major greenhouse gases GHGs and what is a carbon dioxide equivalent CO2e? What alternative mechanisms for GHG emission reductions does the Kyoto Protocol KP provide for?

How do developing countries participate in these mechanisms? What are Certified Emission Reductions CERs and how are they issued?

What will be major features of NCDEX CER futures contract? Why is the NCDEX CER futures contract a DEC expiry contract? Futures trading in commodities results in transparent and fair price discovery on account of large scale participations of entities associated with different value chains and reflects views and expectations of wider section of people related to that commodities. The trading on futures contract on our platform will be facilitated on an online platform for market participants to trade in a wide range of commodity derivatives driven by the best global practices of professionalism and transparencies.

We have provided with more details on the entire gamut of commodity trading in India in general and on NCDEX in particular in our website under "Presentations".

Please visit our website www. An individual, partnership firm, Private limited company, public limited Company, co-operative societies are eligible to become members of NCDEX. Yes, HUF is permitted for NCDEX membership. This change has been made effective March National Commodity and Derivatives Exchange Ltd NCDEX is a public limited company registered under The Companies Act, with the Registrar of Companies, Maharashtra in Mumbai on April 23, The registration no of NCDEX is U MH PLC For trading cum clearing member TCM the criteria is as follows: Net worth of Rs 50 lacs Interest free deposit of Rs 15 lacs towards base capital Collateral deposit of Rs 15 lacs in form of bank guarantees, fixed deposit.

Net worth of the new entity should be Rs 50 lacs. Please follow the procedure explained in detail in Annexure C-1A of the application form to calculate the networth. No, the networth of the holding company is not taken into consideration for reckoning the networth of the entity applying for membership. The certificate and statements need to be certified by a Qualified Chartered Accountant who has audited the same.

It is desirable, however, we will consider waiving the same in case of persons having adequate experience in commodity market, financial markets. What is the lock in period for the interest free security deposit? The lock in period for the interest free security deposit fee is three years and three months. The interest free security deposit will be refunded to the TCM, when they express their intention to relinquish their membership rights after a cooling period of months of surrendering the membership rights.

The minimum lock in period for membership is three years and three months. Collateral security could be in the form of bank guarantee, RBI Bonds, fixed deposits and Government of India Securities. These certificates have to be deposited with the NCDEX and the same will be refunded on relinquishment of the membership.

The course module and the study materials is being complied and the same will be made available on our website. The core dealer is expected to pass the exam on or before the date stipulated by NCDEX. The existing stock broking company cannot apply in the same and need to form separate entity for seeking membership of NCDEX.

Exposure will be permitted against base capital and collateral however a portion of the same will utilized for formation of Settlement Guarantee Fund. The trade timings of the Exchange from Monday to Friday are IST On Saturday, Exchange would remain closed as per FMC guidelines.

Please indicate the permissible brokerage structure and brokerage pattern. The exchange does not stipulate any directives in this regard and it is free to be bilaterally decided between client and member of the exchange.

No, the membership availed at the first instance is composite one and will be valid for all the products which are to be traded on NCDEX. Whether one can use the idle NSE terminal for trading on NCDEX? The dominant promoter group stipulation is applicable in case of partnership firms, private limited companies and unlisted public companies. This exercise is an effort by NCDEX to identify and understand the individuals, who are the driving forces of the entities applying for membership on NCDEX.

Currently, the exchange facilitates futures trading in 59 commodities, out of which 39 are agricultural, 6 precious metals, 3 polymers, 4 energy produces, 6 metals and carbon trading.

The commodities are mentioned below in alphabetical order: NCDEX is a professionally managed, nation wide, on-line multi-commodity exchange promoted by ICICI Bank Ltd, National Bank for Agriculture and Rural Development NABARDLife Insurance Corporation of India LICand National Stock Exchange NSE. NCDEX is a technology driven de-mutualised commodity exchange with an independent board of directors and professionals not having any vested interest in commodity markets.

It is committed to provide a world class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by the best global practices of professionalism and transparency. The four institutional promoters of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nation wide reach, technology and risk management skills. We are in dialogue with large scale players in commodity market for voluntary market making like in case of gold and silver major bullion importing banks have agreed fro market making.

Similarly large commodity trading houses have agreed to do market making in commodities they are dealing in. The membership forms will be processed at our end and in case of any additional information, the same will be called for. If found in order, the applicants will be subsequently called for personal interaction with the membership committee of NCDEX.

Successful applicants will be intimated by NCDEX. 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.

In view of undertaking as above it is suggested that designated director on entitiy having membership of BSE does not assume responsibility as qualifying director in corporate entity seeking membership of NCDEX. However entity having membership of BSE can seek membership of NCDEX through subsidiary route. Upon the provisional admission as NCDEX member and being advised on the same by NCDEX, the prospective members are required to comply with the networth requirements in weeks time.

Regarding Partnership Deed being a proof of Address of the firm, we feel that it should be acceptable if such Partnership Deed has been duly registered with Registrar of firms. Further, appears to be in respect of corporate clientsin case of corporate clients the registered office of the Company figures in the certificate of incorporation itself and therefore, the MOA and Articles of association should suffice.

A stop loss order is an order which will be visible to the market only when it satisfies the business conditions for buy and sell. It is used as a tool to limit the loss. A Buy Stop loss order is an order which will be visible to the market when the LTP of the contract matches or exceeds the trigger price specified by the user. A Sell Stop loss order is an order which will be visible to the market when the LTP of the contract matches or falls below the trigger price specified by the user. For placing buy stop loss order: Press F1 Select the order type Specify the limit price in case of SL -Ltrigger price and other fields.

Press Enter and then Ctrl to send the order For Placing sell stop loss order: Press F2 Select the order type Specify the limit price in case of SL -Ltrigger price and other fields. Press Enter and then Ctrl to send the order. Trigger price is the price specified by the user and is the price at which the user wants that order to get triggered i. Limit price is the price specified by the user in case of a SL-L order and is the price at which the order should get traded.

In case of SL-M this is taken as the Market price at that time. The status of the order will be Untriggered or Confirm.

Stop loss order gets confirmed the moment they are received by the trading system. The order may or may not get triggered immediately depending upon the trigger price and the LTP. The order can be modified from the F3 Outstanding Order screen as shown below. A Buy Stop loss order will get triggered when the LTP on that particular contract matches or exceeds the trigger price specified by the user.

A Sell Stop loss order will get triggered when the LTP on that particular contract matches or falls below the trigger price specified by the user.

For Buy Stop loss order: For a Stop loss order to get traded - Firstly the stop loss order should be triggered based on LTP and Trigger Price condition. The order must find a matching counter party order. The order can be cancelled from the F3 Outstanding Order screen as shown below. The order can be cancelled by the system in the following three situations: The Member enters in Square-Off mode. The Member is Suspended. Xor operation in excel order is a day order and remains outstanding till end of day.

The messages displayed will be as shown below: If yes then in what cases will it be rejected? Based on business validations the order will be rejected. The validity of the stop loss can be any of the following: Day GTC GTD IOC GTDys. Will a STOP Loss order be carried forward to the next day if it doesn't trigger or get traded?

The Stop Loss order with a Limit price outside the price range can be placed. Please note the following conditions - Limit price out side the operating range - Order will go into Freeze Limit price outside the Freeze range - Order will be rejected There is no validation on the trigger price.

Presently NCDEX has tied-up with NCCL for clearing the trades and for settlement of trades. All contracts with open positions not intended for delivery and non-deliverable contracts would be cash settled. All contracts with open position which is intended for delivery would have to be settled by delivery and in case of delivery defaults compensation as per the Exchange norms would be paid to the buyers.

All contracts settling in cash would be settled on the following day after the toronto stock exchange listings contract expiry date. All contracts materializing into deliveries would settle in a period of days after the expiry. The exact settlement day would be specified in the settlement calendar released by the Exchange for every expiry month.

Deliveries are not always guaranteed to the buyer. Also in case of delivery default compensation are paid to the buyers as per the Exchange norms intimated to market vide various circulars from time to time. The buyer and the seller have to express their intention for delivery.

Deliveries would be matched randomly at client level open positions. Contracts not assigned for delivery would be settled in cash as per the Final Settlement Price FSP. How would the settlement take place in commodity futures market? For open positions on the expiry day of the contract, the buyer and the seller can give intentions for delivery through the trading system. Deliveries would take place in electronic form Demat form. All other open positions would be settled in cash with the Final Settlement Price FSP.

Any buyer intending to take physical delivery would have to submit Remat request to its Depository Participant, who would pass on the same to the registrar and the warehouse. On a specified day, the buyer would go to the warehouse and pick up the commodity after confirmation from warehouse.

The process is called dematerialization. The seller intending to make delivery would have to take the commodities to the designated exchange accredited warehouse. These commodities would have to be assayed by the Exchange accredited assayer. The forex fines deutsche bank report must confirm the quality of commodities to be meeting the contract specifications with allowed variances.

If the commodities meet the specifications as required, the warehouse would accept them. The seller's would issue and dispatch the respective invoices to its clearing member, who would then dispatch the invoice to the buyer's clearing member. Please refer our website www. The Exchange has accredited various warehouses and the details are available in the below mentioned link: NCDEX would prescribe the accreditation norms, strategies in forex scalping of financial and technical parameters, which would have to be met by the warehouses.

The butler creek remington 870 folding stock review warehouse service provider would decide the warehousing charges. However the tentative warehouse charges are available on our website. The charges are based on the services provided by respective warehouses. For contracts materializing into deliveries, sales tax would be added to the settlement amount.

The sales tax would be settled on the specified day after the payout as mentioned in the settlement calender. Yes, These would be pre-defined and made available on the website. Those commodities cannot be delivered till it is again revalidated. A revalidation request is to be submitted at the warehouse and once the commodities are certified acceptable by the accredited assayer then a new ISIN no. Cake decorating shops in preston lancs the commodity fails the revalidation test then such commodities will have to be taken out of the warehouse by remat.

Commodities are only accepted if they pass the assayer test and confirm to NCDEX quality specifications. Partial delivery as well as bad delivery would be considered as delivery default and appropriate penalties would be levied.

After verification of the facts a view will be taken on further course of action. The Exchange will take only complaints which have been referred within the FED of the commodity under dispute. Please refer the below mentioned link http: Addition of Delivery Request. Position the cursor on the applicable contract. The current selection is for GLDPURMUM Jan nedbank share trading costs. The following screen will appear.

Click on Ncfm option trading strategies module pdf button. The below window will open. Delivery intentions for participant code can be entered only from Corporate Manager id. Remarks - Any remarks can be entered. Warehouse Location - For Sellers - From the drop down list, choose the warehouse and location where the goods are available in the demat form. For Buyers - Select the warehouse preference.

Dematerialized - For Sellers - This flag should always be set to yes. For Buyers - This option is not available. The TMID, Client Code and Participant ID fields will be highlighted.

If the counter party is a Client - Enter TM ID and Client id of the counter party If the counter party is a Participant - Enter only Participant id of the counter party. If the counter party is a Member i. Delivery instructions for counter party settlements have to be given separately for Sell as well as Buy.

Click on Send You will get a confirmation on the same window with the delivery number and also on the system message area as shown in the figure given below. Delivery Information screen after sending the delivery intention. Modification of Delivery Information A Dealer can modify only the delivery information entered by him. A Branch Manager can modify the delivery information of any dealer under his branch.

A Corporate Manager can modify the delivery information of all dealers and branch managers of the trading member firm. A Clearing user can modify all delivery information for a trading member that is clearing through the Clearing member 1.

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Select the Outstanding request option. Double Click on the record to be modified. A window as displayed below will open. Click on the Modify button. Update the changes as per your requirement. You will get a modification confirmation in the same window with the delivery number and also in the system message area as shown in the figures given below. Delivery Information Cancellation Delivery Information cancellation can be performed by the following sequence 1.

Double Click on the record to be cancelled. A window as displayed below shall open. Click on what is the meaning of ltp in stock market Delete button in the screen given above. Click on the Confirm button in the screen given below.

You will get a cancellation confirmation on the same window and also on the system message area as shown in the figures given below. Trading the trend line break forex current selection is for CASTORDSA Jun contract. Click on Delivery Entry button. If The delivery request is For Pro - Select Pro.

For Client - Select CLI and enter the correct client code in the Client Id field for whom the position is outstanding. The TMID, Client Code and Participant ID fields will be highlighted as shown in the figure given below. Press Enter to send the delivery request Press CTRL to confirm the delivery request Note: Delivery instruction will only be submitted if both Enter and CTRL keys are pressed. Delivery information screen after sending the delivery intention.

A Clearing user can modify all delivery information for a trading member that is clearing through the Clearing member Delivery information modification can be performed by the following sequence 1. Click on the record to be modified. Click on Modify Del button to open the delivery information modification screen. Update the changes as per your requirement 5. Press Enter to send the modified delivery request.

Press CTRL to confirm the modification. You will get a modification confirmation in the system message area as shown in the figure given below. Delivery Information Cancellation Delivery information cancellation can be performed by the following sequence 1. Click on the record to be cancelled. Click on the Cancel Del button to cancel the delivery information. Click on the Yes button in the screen given above. You will get a cancellation confirmation in the system message area as shown in the figure given below.

There is no additional capacity available. As the operations are time handbook on forex trading nicholas tan, we thought it prudent to have a separate indian stock market eod charts. Members can trading binary option 100 no deposit bonus any of the three connectivity's: NCDEX has tied up with HCL Comnet for VSAT services.

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The services would be provided as a package deal at the price agreed. The cost works out to be approximately Rs. The best forex options brokers for scalping cost over a period of 5 years works out to be approx. The member would directly deal with the vendor. However, NCDEX would monitor the service levels of the vendor.

Member is free to approach NCDEX for problems faced and NCDEX would intervene. The member would have to directly make the payment to the vendor. As soon as NCDEX confirms the membership, NCDEX would intimate the service provider.

The member remington 742 woodsmaster synthetic stock approach the service provider, along with the one time payment.

Yes, the service provider would buy back the VSAT at a price, which would be dependent on the year of surrender and the condition in which it is surrendered. The rates for buy back would be specified. NCDEX has negotiated the best price, split into the following two components: One time VSAT cost of Rs.

Annual bandwidth charges of Rs. No AMC charges is payable for the first three years and AMC is payable at Rs. The AMC and bandwidth charges are payable in advance. The AMC and bandwidth charges will apply till the surrender request has been processed. For further information please refer the connectivity FAQs under Technology menu. Guidelines for issue of advertisement by the members are given in circular no.

Please refer to the same. No Prior approval of the Exchange is required only in case the member is not following the guidelines issued by the Exchange in this regard or the member wish to use the logo of the Exchange.

Please refer to circular no. As per the guidelines issued by the Exchange, prior approval of the Exchange is required to be taken by the member for using the logo. Please also refer circular no. As per the provisions of our What is the meaning of ltp in stock market Laws 6.

Even member allowing other member to trade through him as a client would face similar penal action. Please refer circular no. However, there are restrictions on the members, who are registered with Stock Exchanges, to deal in other than securities. The Exchange has so far not stipulated the appointment of Compliance Officer as mandatory and the member need not communicate the same to the Exchange. Separate member client agreement is to be executed for each of the commodity Exchange for which member is offering broking services to the client.

For maintenance imsforex copies soft or hard copies of the digital contract notes so issued, may be confirmed from Inspection Section.

It is mandatory only for those members who are trading on account of their clients, for others i. Please refer Circular no. Members should not undertake any advisory services in the nature of portfolio advisory services, portfolio management services and similar such other advisory services resulting in fund based portfolio management services to clients for investment in commodities future contracts. There is no minimum brokerage prescribed by the Exchange till date.

Is a copy of income tax returns mandatory to be collected by the members from the client at the time of registration or KYC? No, members may not insist upon copies of income tax return. The member need not have 24 tricks to trading binary options local sales tax registration.

Do the market participants need to have sales tax registration? Rates of sales make money double in sbi for commodities differs from State to State. Winchester cattle market car park States' as per the sales tax laws, also provide for how much money did jk rowling make off harry potter of additional tax, turnover tax, resale tax, etc.

It is obligatory on the part of the registered seller to collect the sales tax from the buyer in case the commodity is covered under the local sales tax and file the returns as per the defined procedure of the relevant local sales tax 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 sales tax to the seller will be the sole responsibility of the Buyer.

Sales tax has to be paid by the buyer members on the day of sales tax settlement only as specified in the settlement calendar. The local sales tax levied would be based on the Final Settlement Price.

The participants can avail of the exemptions, if any. The said details of exemptions must be informed by the buyers to the respective sellers. In case the registration is not availed the member is expected to appoint a clearing and forwarding agent. The amount will is reflected in the SL for the buyer member and for the Seller member he has to export the data in excelsheet from Web NCFE module to view the details.

Yes, inclusive of all taxes and levies means sales tax is added in the amount traded on the Exchange platform. Anugya patra is a settlement related document which is to be provided by seller. In case of "Chana" at Indore. It is a document which proves that seller had paid "Mandi tax" at Indore Mandi. Mandi tax has to be paid to the Mandi authority when the seller deposits Chana for the first time. Depositor will get Anugya patra from Mandi authorities which are to be passed on to the corresponding buyer.

In case, if both seller and the buyer are registered at same Mandi, the seller has to write Anugya patra. Number on the invoice which will be provided to the buyer.

AMC Certificate is a settlement related document which is to be provided by seller in the commodities which has delivery centers in Andhra Pradesh for e.

He has to check 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. No, he has to pay in individual states depending on where his client is trading. If the Client is trading in Mumbai, and the main office is based in Delhi from where the Contract Notes are printed, then Stamp duty is applicable according the Maharashtra Stamp Duty Act for the particular Client and is to be paid in the State of Maharashtra. No, he has to pay stamp duty whichever is higher and pay in the state which has higher stamp duty. Please refer to our circular no.

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.

Service Tax is a form of indirect tax imposed by the Government on specified services called 'taxable services'. Presently it covers 58 services for detailed information the Member will have to Contact the local Services Tax Office.

Service Tax is payable on the amount actually received i. 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.

Only one registration is required even if the service provider provides more than one taxable service. Get in touch with the relevant department of Govt. In the case of individual or proprietary concern or partnership firm, the service tax shall be paid on a quarterly basis.

Payment to be made by 25th day of the month following the Quarterly Basis i. 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. No specific mention is 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.

The member can claim input credit once payment is made and not on the day on which he receives or books his Invoice. There are many CTCL vendors and the number of CTCL Terminals provided on one CTCL user id would be decided by the CTCL vendor.

Gases in the atmosphere form a cover around earth. When sunrays enter the earth's atmosphere, some of them are reflected back into the universe by the gaseous cover, and the rest are allowed to enter the earth's system. When sunrays strike the earth's surface, the surface absorbs some of the heat and reflects back the rest. The earth's heated surface also radiates some heat back to the environment. This effect is called the greenhouse effect and the gases responsible for it are known as greenhouse gases.

Carbon dioxide CO2 Methane CH4 Nitrous oxide N20 Hydrofluorocarbons HFCs Perfluorocarbons PFCs Sulphur hexafluoride SF6 Approximately 25 other gases, such as chloroform and carbon monoxide, qualify as climate-changing greenhouse gases, but only the above mentioned 6 are released in sufficient quantities to justify regulation under different carbon trading regimes. Water vapour is a very important greenhouse gas, but it is not controllable by human intervention and is regulated by natural cycle.

GHGs are weighted in terms of their potential for warming the atmosphere. The Global warming potential GWP is a measure of how much a given mass of greenhouse gas contributes to global warming. The GWP is a measure of the relative contribution of different gases to the greenhouse effect. Carbon dioxide CO2 has been assigned as the reference gas with a GWP of 1. The GWP of other GHGs is calculated in CO2e terms. Thus, one unit of GWP is the warming potential of one tonne of CO2.

The GWP is calculated over a specific time interval. Transaction of carbon emission instruments is known as 'Carbon Trading'. Generally one instrument represents one tonne of Carbon dioxide equivalent CO2e.

The instruments can be 'Carbon Credits' i. Historically there existed a natural balance of greenhouse gases in the atmosphere. This kept the average temperature conducive for the sustenance of life on the planet. But during the last years since the industrial revolution, the level of greenhouse gases has gone up significantly because of the burning of fossil fuels like coal and oil.

These human induced anthropogenic GHG emissions have caused serious disturbances in the natural cycle of climate regulation. Artificially high GHG levels in the atmosphere trap more heat by augmenting the greenhouse effect. The average temperature of the earth has seen an unprecedented increase in recent times. Climate change has multiple implications such as the receding of glaciers, rising sea levels, droughts, cyclones, floods.

Scientifically authenticated reports have all emphasized the urgency for immediate action for controlling the increase in anthropogenic greenhouse gases in the atmosphere. This has paved the way for carbon trading wherein governments, companies and individuals are making efforts either through regulatory or voluntary measures, to curb GHGs emissions. The Kyoto Protocol adopted under the UNFCCC is a significant landmark in this direction.

In over countries at the "Earth Summit" in Rio de Janeiro adopted the United Nations Framework Convention on Climate Change UNFCCC. The UNFCCC is a legal framework that enables Parties to the Convention to start the process of stabilizing greenhouse gases GHGs in the atmosphere. Parties to the UNFCCC have been meeting every year since to implement and define this framework. At the third meeting of the Parties, COP 3, the Kyoto Protocol, an international and legally binding agreement to reduce greenhouse gas emissions worldwide, came into force on 16 February Under the Protocol, industrialized countries or so-called Annex I Parties are legally obligated to reduce their emissions against set targets.

In time for the first compliance periodAnnex I Parties will have to encourage or regulate private companies and individuals to reduce GHG emissions. Most of these reductions will occur within the borders of each Annex I country, but the Kyoto Protocol identifies mechanisms by which credit can be received for GHG reduction projects in non-Annex I countries i.

Under the Kyoto Protocol, three innovative mechanisms have been designed to economically contain the global level of greenhouse gas emissions. The mechanisms are built on the logic that as emissions anywhere have global impact, the emission reduction anywhere should also have a similar affect on the global GHG dynamics. Hence, it makes no difference whether the cuts are made at company X or company Y; country A or country B.

It is the overall global level that is important. The UNFCCC issues Certified Emission Reductions CERs against audited amounts of per tonne CO2e emission reductions. The CDM mechanism allows for the implementation of project activities that reduce emissions in return for credits.

Projects can generate Certified Emission Reductions CERs from up to a total of 21 years. These credits can then be sold to companies and governments from developed countries to help them meet their own targets.

The CDM is the only mechanism under the Kyoto Protocol that involves developing countries or non-Annex I countries. Annex I countries buy certified emission reduction CERs credits from companies in non-Annex I countries and use them to fulfill their GHG reduction commitments under the Kyoto Protocol.

One Carbon Credit unit represents one tonne reduction of CO2e. CERs are carbon credits from a project that reduces GHG emissions compared with what would have happened otherwise. CERs are issued under Clean Development Mechanism CDM by UNFCCC. An allowance specifies the maximum emission limit for an entity for a given period.

The Certified Emission Reduction CER market, under the UNFCCC framework, would soon be one of the biggest carbon markets in the world. India currently has the second largest portfolio of CDM projects. India is a significant player in the carbon market. As on 3rd AprilIndian projects accounted for 39 million issued CERs, for a significant On the trading side, while India is a major seller of CERs, European Union countries and Japan are the major buyers of CERs.

Internationally five major exchanges other than NCDEX have either launched or are planning launching CER futures contracts. NCDEX is the first exchange in any of the developing countries of the world to launch the UN issued carbon credit CER futures contract on its platform. The intention matching contract will be different from the compulsory delivery contracts floated on European exchanges.

The intention matching contract will provide an OTC kind of arrangement to the buyers and sellers for the physical delivery of CERs. The Exchange will match specific delivery requirements of buyers and sellers for guaranteed deliverable CERs. Simultaneously it will provide an opportunity for cash settlement to investors who are not interested in delivery.

The NCDEX CER contract will be traded under the symbol "CERNCDEX". The features of the contract among others will include: Client wise - lots 5.

NCDEX will facilitate the physical delivery of CERs where specific delivery requirements of the buyers and sellers will be matched by the Exchange. For details on the delivery process, please refer to the product note for the contract. Emission positions of compliance players will be reviewed only on 31st December basis by the respective regulators. Hence, it will be more relevant if compliance buyers get CER volumes released during December for meeting their emission obligations.

Major price indicators are: Supply-demand scenario Crude oil prices Coal prices CO2 emissions - inventory position published internationally Weather conditions Global large buyer-seller market economic growth Regulatory provisions from buyer-seller governments International negotiations Euro Rupee fluctuations Especially relevant for Indian CER trade.

Major participants in carbon trading are: Buyers - Compliance participants obligated emitters in developed countries that include companies involved in various energy intensive activities. Under the Kyoto Protocol, major buyers are governments and private companies from: New Zealand There are various carbon funds working la mutual funds for buying CERs on behalf of compliance players and investors. Individual companies and intermediaries are also trading in the CER market.

Several of these have established their operational subsidiaries in major CER producing countries like India, China and Brazil. Investment banks and other financial institutions are also taking an active interest in the trading of CERs. Sellers - India, China and Brazil are the major CER producing countries.

China is the largest producer of CERs, but every transaction of Chinese CERs needs the government approval. Whereas in India, which is second largest producer of CERs, no taxes are imposed on CER revenues. Also the government does not play a significant role in the trading of CERs.

All the major corporates and PSUs in India have developed sizable portfolios of CER projects and a considerable numbers of CERs are expected to come from these projects.