1.1.      All deals executed and matched on the trading platform of PetEx, shall result in compulsory physical delivery and on the Settlement Date, shall be settled by the Trading Members by themselves in accordance with and as per manner prescribed and permitted by Relevant Authority from time to time. 

1.2.      The delivery of commodity arising out of each trade will be in accordance with the terms specified in the special terms and conditions subject to which any commodity has been offered for trading. Settlement in each market segment of PetEx or with respect to specified commodities shall be on gross basis trade for trade basis or any other basis as may be specified in the special terms and conditions from time to time. Settlement shall be effected by Members giving and receiving delivery and/or paying and receiving funds as may be specified by in the special terms and conditions from time to time. 

1.3.      The General Terms and Conditions along with any resolutions, notices, directions, circulars and decisions of Relevant Authority for the time being in force shall be deemed to be part of the terms and conditions of every contract/deal/trade. In case the provisions contained in the Special Terms and Conditions are silent on any part or performance of the trade or anything related thereto, the relevant provisions contained in the General Terms and Conditions shall be applicable.

 1.4.      Deliveries shall be in a manner prescribed by Relevant Authority or Special Terms and Conditions or Contract Specifications through notified delivery centres and in accordance with the settlement system put in place by Relevant Authority for the purpose.

 1.5.      No order/trade shall be permitted in the trading system unless the quantity of goods equivalent to the quantity proposed to be sold through PetEx platform has been deposited by the seller in the warehouse notified by Relevant Authority or authorized warehouses specified in the Special Terms and Conditions and/or Contract Specifications issued for any particular commodity and necessary electronic balances have been created and confirmed by the concerned Member unless permitted otherwise by Relevant Authority for a specific market segment or commodity. 

1.6.      The goods with pre-specified quality or otherwise along with other parameters offered for trading shall be delivered through the electronic delivery system as put in place by Relevant Authority or any other process prescribed by Relevant Authority. 

1.7.      The Seller shall deposit and hold the commodity in the notified warehouses or authorized warehouses specified in the Special Terms and Conditions issued for any particular commodity. Relevant Authority may at its own discretion, make it mandatory to get the commodity brought in by the Seller to be checked for the quality by Assayers approved by Relevant Authority before the deposit of the same is accepted by the Warehouse. 

1.8.      Relevant Authority may modify or prescribe any other manner of giving and taking deliveries of commodities sold through PetEx platform. Alternately, Relevant Authority may permit the goods to be delivered directly from the Sellers own warehouse/godown/ yard/factory subject to such terms and processes as may be stipulated in that regard. 

1.9.      In case of commodities requiring environmental clearances, Relevant Authority may prescribe certain specific norms or terms and conditions like Assayer’s Certificate, environmental clearance related certificates etc. for accepting any such commodities for trading through PetEx platform. 

1.10.    Relevant Authority may prescribe from time to time such norms and procedures which may include delivery with respect to market lot, odd lot, minimum lot, part delivery, delivery period, expiry date, designated tender days, delivery orders, delivery grades, delivery centers, freight adjustment factors, sampling analysis & certification method, warehousing/assaying charges etc. along with any other norms and procedures which are necessary for the purpose. 

1.11.    The Goods deposited at the warehouse shall continue to be owned by the holder of such Goods is held by such depositor/holder. The ownership of Goods shall stand transferred to the Buyer upon the transfer of electronic credit to such Buyer. Accordingly, the warehouse charges shall be payable by the depositor/seller/holder till the Goods is held in its account. 

1.12.    The Relevant Authority may prescribe from time to time the requirements and procedures for determining disputed deliveries or defective deliveries, and measures, procedures and system of resolving the dispute or defect in deliveries or of consequences of such deliveries or the resolution. 

1.13.    Without prejudice to the generality of the foregoing, the Relevant Authority may close out deals against a Member in the following circumstances, 

a)   In case of the selling Members – on failure to complete good delivery on the due date; and 

b)     In case of the buying members – on failure to pay the amount due on the due date, 

c)    Any other circumstances as may be prescribed by the RELEVANT AUTHORITY. 

1.14.    Any loss, damage or shortfall sustained or suffered as result of such closing out together with penalty if any, shall be payable by the Members who failed to give due delivery or to pay amount due.



2.1.      The Relevant Authority, PetEx or the Special Terms and Conditions shall prescribe the process from time to time for the functioning and operations of Clearing and settlement of the trades executed on the PetEx trading platform and to regulate such functions which shall be deemed to form a part of any clearing and settlement process so provided. The Relevant Authority, PetEx, Special Terms and Conditions may specify different process and procedures for clearing and settlement for any or all Members or in respect of any or all commodities or any specific commodity or in respect of specific area/region from time to time. 

2.2.      Transactions Subject To Change in Settlement Procedure – 

Relevant Authority may, at any time through a notice, Circular or directive bring into effect any substitution of or any additions to or deletions from or variations, alterations or amendments in any settlement procedure or in any clearing and settlement process or in the time or forms prescribed thereof, in respect of all or any deals or trades entered into or to be entered into the PetEx trading system, and all such changes shall be binding on both the parties to the trade. 

2.3.      Clearing Bank 

2.3.1. Relevant Authority would notify identified Clearing Banks to perform the functions of collection of margin money and settlement of all deals entered into through PetEx and for any other transfer of fund between Trading Members and PetEx and/or between Trading Members inter-se or between PetEx and Clients as the case may be, as may be directed by Relevant Authority from time to time. 

2.3.2. Payment in respect of all trades for the Clearing shall be made through such Clearing Bank(s); Provided however that the trades of Sales and Purchases executed between different Clients of the same Member in the same Settlement, may be offset by process of netting of funds to arrive at Net Obligations of funds. However the physical delivery will have to be settled on gross basis by giving and taking delivery of the quantities of commodities as per trades concluded on PetEx. 

2.4.      Members To Have Account With The Clearing Bank 

For the purpose of efficient and timely settlement of trades, Relevant Authority may require the Member to open an account with designated Clearing Banks or effect the trades clearing settlement process through certain Clearing Banks only. 

2.5.      Clearing Bank To act as per the instructions of PetEx 

Relevant Authority shall instruct the Clearing Bank as to the debits and credits to be carried out for the funds settlement between the Members. The Clearing Bank shall act as per the instructions received from PetEx for the funds movement. Instructions of PetEx as to debits and credits to a Member’s accounts shall be deemed to be irrevocable and confirmed mandate by a Member to debit his account and/ or credit his account with funds as specified in the instruction. PetEx shall have the right to view the funds availability in the clearing bank account of the Member for the purposes of such debit or credit instructions.


2.6.      Clearing Hours, Days, Scheduled Timings And Clearing Charges


2.6.1.    The Relevant Authority shall from time to time fix the various clearing hours, clearing days, the Pay-in and Pay-out days and the scheduled time to be observed in connection with the clearing and settlement operations of Trades/Deals. The Relevant Authority may specify different schedules for any or all Members or for any specific commodity or for any specific region/area from time to time. 

2.6.2.    The Relevant Authority may at any time curtail, extend, alter or postpone to any other date or dates the entire Clearing or any or all of the various clearing days in respect of any or all of the trades/deals in commodities. 

2.6.3.    The Relevant Authority shall from time to time prescribe the scale of clearing charges for the clearing and settlement of transactions through PetEx clearing system. 

2.7.      Settlement Obligations Statements For Members 

PetEx shall generate and provide to each Member, Settlement Obligations Statements showing the fund obligations, quantities of the different kinds of commodities for which delivery/ deliveries is/ are to be given and/or taken and the funds payable or receivable by him in his capacity as Member. The Obligations Statement shall be deemed to be confirmed by the Member for which deliveries are to be given and/or taken and funds to be debited and/or credited to his account as specified in the Obligations Statements and shall be deemed instructions to the Clearing Banks/Institutions for the same.  

11.8.    Mode Of Funds Payment 

The mode of funds pay-in and pay-out shall be electronic mode of fund transfer as approved by the Reserve Bank of India from time to time or as by way of Demand Draft, Pay Orders or other method of payment as approved by the Reserve Bank of India for executing commercial transactions. Payment of funds in cash shall not be allowed in any case by PetEx. 

2.9.      Receipt Of Commodities 

Commodities which are to be received by a Member in all trades/deals shall be delivered to him directly by the delivering Member or would be credited to buyers account in electronic form in Commodity management system on the respective pay-out day as per instructions contained in the Special Terms and Conditions or as informed/notified by Relevant Authority from time to time or any other manner as may be prescribed by Relevant Authority. 

2.10. Mode Of Receipt Of Funds 

2.10.1. On the Pay-out day, unless otherwise specified by Relevant Authority will make payment to the account of Members or issued demand draft to the Members who are due to receive funds. 

2.10.2. All funds due to a Clearing member shall normally be credited to his account unless – 

a)     the Member has not delivered commodities on Pay-in day as per Settlement Obligations Statement or

b)     the full extent of funds obligation of the Member was not available with or received by PetEx for the other buying Member or 

c)     it is otherwise ordered by Relevant Authority or Relevant Authority on its own or at the instance of any r the buying member for sufficient reasons to the satisfaction of the Relevant Authority. 

2.11. Withholding Of Commodities electronic form And Funds 

Notwithstanding anything contained in these General Terms and Conditions, PetEx may withhold, for such period(s), pay-out of any commodities and any funds including commodities in electronic form and funds including margins, if – 

a)     the Member fails to deliver the required commodities on pay-in day or 

b)     the Member fails to deposit the margin or security deposit requirements or 

c)     the Member fails to fulfil any other obligation including its obligations relating to other trades executed on PetEx platform or 

d)     the Relevant Authority, otherwise, deems fit. 

2.12. Withheld Commodities in electronic form And Funds – How Dealt With 

The commodities in electronic form and funds withheld shall be dealt with by the Relevant Authority in such manner as it may deem fit by Relevant Authority or the Relevant Authority or as per the provisions Special Terms and Conditions applicable from time to time, which may include appropriating the withheld funds for the purpose of fulfilling the obligations of the Member towards any other Member/s or withholding of commodities in electronic form till fulfilment of obligations by such member to the satisfaction of Relevant Authority. 

2.13. Death Of A Member 

If a Member dies on or before the Pay-in day, the heirs or legal representatives of such deceased Member may receive and/or deliver commodities and make and receive payment on account of such deceased Member whom Relevant Authority approves. Relevant Authority may, if it deems appropriate at its discretion decide the sale as not complete and Goods in such event shall be returned/continue to be owned by the Seller. For the purpose of ascertaining the legal heirs of the deceased Member, Relevant Authority may follow such procedure or require submission of such documents as deem fit by Relevant Authority. 

2.14. Delivery When Complete 

2.14.1. On the due date of settlement as notified under the settlement calendar, the selling member shall deliver to the buying member at such place and at such time, in such manner and in such delivery units as the Relevant Authority may notify from time to time, commodities together with the necessary documents, electronic or otherwise and the applicable invoices and the buying member shall pay for them on the same day or such other day and in such manner as the Relevant Authority may specify from time to time or as prescribed under the applicable Special Terms and Conditions. For farmers, once the delivery process in the prescribed manner is complete, the farmers will get the payment possibly on the same day or the next working day, if banking operations remain open or as per terms specified in the Special terms and conditions 

2.14.2. Commodities delivered by the Client / delivering Member in accordance with the contract specifications or in accordance with the quality and quantity offered for sale, to the Buying Client / receiving Member accompanied by the related documents of title as above, shall, in the absence of fraud or apparent error, be considered as good delivery and the receiving Member shall accept them as good delivery and failing such acceptance, Relevant Authority shall be entitled to close-out or deal with the same against the receiving Member in accordance with Special terms and conditions relating thereto or as deemed fit by Relevant Authority. 

2.14.3. If there is a shortage in the goods delivered (other than shortage which can be attributed to natural loss of moisture or normal spillage or sampling as prescribed by the Relevant Authority) or the goods are not of the quality as notified in the contract specification or are not of quality offered for sale on the trading system, then the delivery shall not be complete provided such shortage or deficiency in quality is notified by the Buyer or Buying Member to the PetEx or the receiving member and accepted by such member. Relevant Authority may however, prescribe specific period for notifying such shortage or deficiency in quality to PetEx for this purpose under Special Terms and Conditions or otherwise. 

2.14.4. Relevant Authority shall withhold the sale proceeds, fully or partly as may be prescribed by Relevant Authority, during the period specified for the Buyers to lodge complaint with regard to the quality or quantity of the goods and if any such complaint is received, Relevant Authority may withhold such sale proceeds till the dispute is resolved. 

2.14.5. If the Buyer does not refer any shortage or deficiency in the goods within the time stipulated, the delivery shall be deemed to be good delivery for all purposes and the buyer shall not dispute the quality or quantity thereafter and the settlement obligation for physical delivery shall be deemed to be completed for all purposes. 

2.15. Penalty For Bad Delivery Or Non-Delivery 

2.15.1. Relevant Authority may initiate such disciplinary action against the delivering Trading Member responsible for the commodities of which delivery is not given or which are not good delivery or of which there is incomplete delivery, as  deem fit by Relevant Authority including issuing of show cause notice, temporary or permanent suspension or termination of membership or restricting Members participation in any other trading activities till such time and on such terms and conditions as deem fit by Relevant Authority. 

2.15.2. Notwithstanding anything mentioned above, Relevant Authority may impose on a delivering Trading Member responsible for the commodities of which delivery is not given or which are not good delivery or of which there is incomplete delivery, such penalty /compensation and other charges as it may prescribe from time to time in this regard. Such penalty/compensation and other charges shall be in addition to any loss arising on account of closing-out and shall be in addition to the commission/charges chargeable/payable in that behalf. 

2.16. Disputes relating to Delivery 

2.16.1. In case of any shortage in quantity of commodity (other than shortage which can be attributed to natural loss of moisture or normal spillage or sampling as prescribed by the Relevant Authority), then the delivering Member shall make good the shortage or in the alternative, pay up the receiving Member, the price of the commodity to the extent of the short quantity together with such compensation/penalty as may be prescribed / notified by the Relevant Authority or the Relevant Authority or Special Terms and Conditions within such period as permitted therein. 

2.16.2. In case of deficiency in quality of commodity delivered and notified to Relevant Authority within the period prescribed above, Relevant Authority may request the seller to rectify the defect or substitute the defective commodity with the commodity meeting the quality specifications as per terms of sale together with compensation if prescribed/imposed by the Relevant Authority and resolve the issues raised by the Buyer within such time as may be stipulated by the Relevant Authority. 

2.16.3. In the event of dispute on quality, the Relevant Authority may refer the commodity for re-assaying from such assayer as Relevant Authority may decide on a case to case basis and the decision of such assayer shall be final and binding upon the Buyer, Seller and the warehouse person/delivery center and delivery shall be effected accordingly. 

2.16.4. In the event of the issues not being able to be resolved between the Buyer and the Seller, the matter shall be dealt in accordance with Special Terms and Conditions stipulated in the contract or in absence of any such special Terms and conditions, in accordance with these General Terms and Conditions and as further stipulated from time to time. 

2.17. Delivery through Agents 

The Relevant Authority may, in general or in specific cases, permit Trading Members / Clients to complete delivery under these General Terms and Conditions through their Agents on the terms and conditions as may be stipulated by the Relevant Authority from time to time. The deliveries given to or taken by such Agents shall be construed as deliveries given to or taken by Trading Members / Clients for the purpose of compliance of delivery obligations under these General Terms and Conditions. Trading Members / Clients shall be responsible for all acts and omissions of their Agents and for statutory compliances required in that regard. 

2.18. Charges 

2.18.1. Transportation / loading /unloading costs while the goods are deposited in the warehouse would be borne by the Seller and would be borne by the Buyer while taking out delivery or as may be prescribed under the applicable special terms and conditions. 

2.18.2. Assaying charges, if payable, at the time of deposit of commodity shall be borne by the Seller. 

2.18.3. Assaying charges, at the time of verifying quality arising out of a reference of a dispute, would be borne by the party disputing the quality who shall also bear the storage charges till the time of actual physical delivery or resolution of dispute in his/its favour as per General Terms and Conditions herein. In the event of the dispute being decided against the seller, the seller shall be responsible to refund /pay the storage charges. 

2.18.4. The buying and selling members shall be liable to pay such incidental charges as mentioned in the Special terms and conditions. 

2.19. Disabling Of A Member 

Any Member who fails to deliver commodities or pay funds on the pay-in day shall (without prejudice to any other right of the Relevant Authority), may be forthwith disabled from dealing through the trading system until the PetEx or Relevant Authority may decide otherwise.