1.  DEFINITIONS

 

Unless in the context it is explicitly stated otherwise, all words and expressions used herein but not defined, and defined in the following, shall have the meanings respectively assigned to them therein in the following order of priority:

 

1. Companies Act, 2013

 

1. Special Terms and Conditions as applicable to specific commodity/commodities and/or contracts

 

1. c) General Terms and Conditions of PetEx.

 

1.1.    “ACTIVE MEMBER” of the Exchange means a member of the Exchange, who is not an inactive member of the Exchange.

 

1.2.   “APPROVED USER” means a person employed or engaged by a member of an Exchange in his/their own exclusive arrangement with the permission of the Exchange for trading in the automated trading system or any other trading system approved by the Exchange.

 

1.3.    “APPROVED OFFICE” means the registered office of the exchange member, including such premises or offices from where the member is approved by the Exchange to trade and/or clear on the automated trading system or any other trading system of the Exchange and/or to carry out back office activities.

 

1.4.    “ARTICLES” means the Articles of Association of the Company.

 

1.5.  “AUTHORISED PERSON” means a person, who is registered with the Exchange as an authorized or approved user of an exchange member  and employed whether through a contract of employment or otherwise by the exchange member (whether by way of salary, commission, allowance or otherwise) expressed in terms of money or capable of being so expressed for any kind of work or activity, manual or otherwise, and who gets his remuneration directly or indirectly from the exchange member for any activity relating, directly or indirectly, to the trades done and executed on the Exchange even if such person is not receiving any consideration or remuneration from the exchange member for the services rendered by him.

 

1.6.  “AUTHORISED REPRESENTATIVE” is a person who represents a Member of the Exchange in respect of his business and is duly approved by the Exchange under these general terms and conditions.

 

1.7.  “AUTOMATED TRADING SYSTEM” or Trading system of the Exchange means PetEx Trader Workstation System, which shall be the online computerized system provided by the Exchange for conducting spot trading in commodities permitted by the Exchange, access to which is made available to an exchange member, for use either by himself or by his authorized persons, authorized users and their clients, and which makes available, quotations in the commodities traded on the Exchange, facilitates trading in such commodities and disseminates information regarding trades effected, volumes transacted, other notifications, etc., as may be decided to be placed thereon by the Relevant Authority. The Automated Trading System shall hereafter be referred to as” PTWS”.

 

1.8.  “AUCTION” refers to a process of sale/purchase online or otherwise, where goods /commodity are offered for sale/purchase by inviting bids from more than one participant.

 

1.9.   “BASIS” variety or grade is the description of a standard variety or grade for a commodity permitted for trading at the exchange as specified in the contract specifications laid down in the general terms and conditions of the Exchange and which is deliverable without any “premium” or “discount” against sale of such variety or grade of commodity.

 

1.10.   “BOARD OF DIRECTORS” means and includes the “Board of Directors” or “the Governing Board” or “the Board of PetEx” or “Board”, by whatever name called, vested with the general powers of management and superintendence and complete jurisdiction over all members of the Exchange and all matters contained in the various provisions under the Articles, General Terms and conditions of the Exchange, and over the commodities or securities or any other instruments thereof, which are traded on the Exchange.

 

1.11.    “BRANCH OFFICE” in relation to a Member means:

 

1. any establishment described as a branch and approved by the PetEx.

 

1. any establishment carrying on either the same or substantially the same activity as that carried on by the head office and approved by the PetEx.

 

1. any other place, which the PetEx may approve.

 

1.12.  “BUYER” – For the purpose of these General Terms and Conditions, unless the context indicates otherwise, the term Buyer includes the buying Client and buying Member through whom such client trades and denotes the buying Member when he is dealing on his own account as a principal.

 

1.13.  “BUY ORDER” means an order to buy a commodity permitted for trading on the exchange.

 

1.14.  “COMMODITY” shall mean all goods and products including Petroleum, Petrochemicals, Chemicals and all commodities including energy and any other as may be admitted for trading on the PetEx online trading platform.

 

1.15.  “CLIENT” means a person/entity who has been registered with a Member of PetEx for the purpose of trading or transacting on PetEx platform and/or who trades through such Member on the terms and conditions prescribed by the PetEx and on whose instructions and account, the Member enters into a transaction on the PetEx or does any act in relation/ incidental thereto.

 

1.16.  “CONTINUOUS TRADING” means trading on PetEx electronic platform in permitted commodities with prescribed specifications, throughout the trading hours as announced by the PetEx and in which the matching of orders shall take place online during the trading hours as per process put in place by the PetEx.

 

1.17.  “CONTRACTS/DEALS/TRADE/TRANSACTION” means, unless the context indicates otherwise, a trade, contract or a ready delivery contract relating to buying and selling of commodities admitted to dealings by the PetEx on its platform and which shall be cleared and settled in the manner prescribed by the PetEx.

 

1.18. “CLEARING HOUSE” means the division of the Exchange, or an entity designated as such by the Exchange, providing the services of settlement of transactions to the exchange members, and guaranteeing settlement by delivery or otherwise of the obligations to the clearing members, on behalf of the Exchange.

 

1.19. “CLEARING BANK” means a bank that is designated or appointed to provide banking and other facilities to the Exchange, the Clearing House of the Exchange and members of the Exchange to facilitate clearing and settlement functions.

 

1.20. “CLEARING MEMBER” means a PetEx Associate Member, PetEx

Business Partner or a PetEx Institutional Member of the Exchange who has the right to clear transactions in commodities that are executed in the trading system of the Exchange.

 

1.22. “COMMITTEE” means any committee appointed by the Board of Directors empowering it to perform such functions as the Board may determine from time to time, including framing of Rules and Regulations.

 

1.23.  “CHAIRMAN” means the Chairman of the Board of Directors of Petroleum Exchange of India Private Limited.

 

1.24.  “CHIEF EXECUTIVE OFFICER” means the Chief Executive Officer of the Exchange appointed by the Board.

 

1.25.  “CERTIFIED WAREHOUSE RECEIPT” means a receipt issued under the authority of the Exchange or any agency approved by the exchange as a certified warehouse, evidencing proof of ownership of a stated quantity of commodities of a stated grade and quality by the beneficial owner or the holder of the certified warehouse receipt. Certified warehouse receipt may either be in physical form or in dematerialized/electronic form as may be permitted by law.

 

1.26.“CERTIFIED WAREHOUSE” means a warehouse approved and designated by the Exchange for making deliveries to and taking deliveries from for fulfilling contractual obligations resulting from transactions in commodities.

 

1.27. “COMPANY” means Petroleum Exchange of India Private Limited and shall also be referred to as “PetEx” or the Exchange.

 

1.28.  “DELIVERY” means delivery of commodity in accordance with the applicable clearing and settlement obligations under, these General Terms and Conditions and/or any Special Terms and Conditions. It means the tender and receipt of warehouse receipts/ or any other document of title to goods by issue of delivery order in settlement of a transaction.

 

1.29. “DELIVERY CENTERS” are the centers where the commodities permitted for trading on the Exchange can be delivered by the seller against his outstanding short open position during the delivery period through issue of delivery orders and lifting of delivery of commodity by the buyer against his long open position.

 

1.30.  “DELIVERY ORDER” means an order issued by a seller in the prescribed form in favor of the Clearing House offering delivery of goods at one or more permitted delivery centers towards fulfilment of the seller’s obligation.

 

1.31. “DELIVERY PERIOD” means the period during which the commodities are tendered in fulfilment of the transactions executed under the contract specifications issued as product circulars by the Exchange.

 

1.32.  “DIRECTORS” mean the Directors of Petroleum Exchange of India Private Limited for the time being.

1.33.  “EXCHANGE” means Petroleum Exchange of India Private Limited and the premises and/or the PTWS system for executing transactions in commodities that are permitted to be traded.

 

1.34. “EXCHANGE MEMBER – CLIENT AGREEMENT” means an agreement, which is executed between an Exchange member and his client, in the form and manner prescribed by the Exchange from time to time.

 

1.35. “EMD” or “Earnest Money Deposit” means a deposit or payment of cash /other specified assets/documents to establish or maintain a position in a commodity and includes initial margin, special margin, ordinary margin, delivery period margin, additional margin and variation margin or any other type of margin as may be determined by the Exchange from time to time.

 

1.36.  “FINANCIAL YEAR” means year commencing from 1st April and ending with 31st March of the following year.

 

1.37. “FINANCING or FINANCIAL DEALS” mean and include deals entered into by two exchange members for a client or a group of clients under the same exchange member and/or different exchange members, normally done to secure payment against the first leg of a transaction, which is carried out between  the client and the exchange member on principal-to-principal basis.

 

1.38. “FINAL SETTLEMENT OBLIGATIONS” means the amounts payable and/or the commodities deliverable by a Member in respect of the transactions concluded on PetEx platform, as determined by PetEx in such time and such manner as may be prescribed from time to time.

 

1.39.  “GENERAL TERMS AND CONDITIONS” mean the rules and regulations of the Exchange drawn by the relevant authority from time to time for regulating the trading activities and responsibilities of the members of the Exchange and procedure thereof and includes any modification or alteration made therein, as also circulars, orders and notices issued by the relevant authority from time to time and is a part and parcel of Regulation of the Exchange.

 

1.40. “INACTIVE MEMBER” of the Exchange means a member of the Exchange who has not traded in the Exchange even for a single day in a year.

 

1.41. “IN WRITING” or “WRITTEN” includes handwriting, typewriting, printing, lithography, fax, downloading through computers, e-mail and/or other modes of representing or reproducing words in visible form.

 

1.42.  “LIMIT ORDER” in the case of a buy order, means the rate at or below which the order may be matched on “PTWS” and in the case of a sale order means the rate at or above which the order may be matched on “PTWS”. A limit order can only be fulfilled if the market price reaches the limit price.

 

1.43. “MANAGING DIRECTOR” means the managing director of the Company appointed by the Board in accordance with the provisions of the Articles of Association of the Exchange.

 

1.44. “MEMBER” or “Member of the Exchange” or “Exchange Member” means a person, a sole proprietary firm, Joint Hindu family, a partnership firm, a company (as defined under the Companies Act), a co-operative society, a body corporate or public sector organization or statutory corporation or a government department or non-government entity or any other entity admitted as such by the Exchange for trading, clearing or settlement of contracts permitted in the Exchange and shall not mean a shareholder of the Company unless expressly stated. Membership of the Exchange in this context shall not mean or require shareholding in the Company as a pre-condition. Member shall also mean all categories of members admitted by the PetEx including PetEx Associate Member, PetEx Business Partner, PetEx Institutional Member or any kind or category of member as permitted or may be permitted by PetEx.

 

1.45. “MARKET TYPE” means and refers to different markets (Continuous, Bilateral, Yankee) in which trading is allowed on “PTWS” or any other trading system allowed by the Exchange.

 

1.46. “ORDER” means an offer to buy or sell any commodity through “PTWS” or any other trading system permitted by the Exchange for specific commodities.

 

1.47. “PARTICIPANTS” shall mean and include collectively all the Trading Members, Clients of trading members and persons authorized by trading members. The term includes all the entities involved in the trading activities excluding PetEx.

 

1.48. “PAY-IN”, in respect of transactions done on the Exchange, means making available funds to the Clearing House by the exchange members in accordance with the applicable settlement schedule notified by the Clearing House from time to time.

 

1.49. “PAY-IN DATE” means the date and time prescribed by the Exchange or its clearing house for each settlement by which date and time, exchange members are required to perform their obligations by way of payment of funds or commodities as applicable, to the clearing house.

 

1.50. “PAY-OUT” in respect of transactions done on the Exchange means release of funds by the clearing house to the exchange members who become entitled to receive them to the extent of and upon their fulfilling their pay-in obligations into the clearing house, in accordance with the applicable settlement schedule notified by the Exchange or clearing house from time to time.

 

1.51. “PAY-OUT DATE” means the date and time prescribed by the Exchange or clearing house for each settlement on which date and time, the clearing house shall be required to release funds to the respective accounts of the exchange members and/or clients.

 

1.52.  “PLACE OF BUSINESS” means an office where a member is conducting a bonafide business for dealing in commodities and the address of which is officially intimated to the Exchange.

 

1.53. “PTWS” or “PETEX TRADER WORKSTATION” means a computer terminal of an exchange member which is approved by the Exchange and which is online connected to “PTWS” or any other trading system of the Exchange, for the purpose of trading on the Exchange.

 

1.54. “QUOTE” means a bid price and/or an offer price given by an exchange member for a commodity on “PTWS” or any other trading system allowed by the Exchange.

 

1.55. “RATE” means the price of unit of quote specified in the contract specifications for a commodity transacted on “PTWS” or any other trading system allowed by the Exchange.

 

1.56. “REGISTERED NON-MEMBER” (RNM) means a client of a member of the Exchange who is registered with the Exchange to transact in contracts in specified commodities permitted by the exchange for such registered non-member through an exchange member.

 

1.57. “RELATIVE” means a person who is a relative within the meaning assigned under the Companies Act, in force from time to time.

 

1.58. “RELEVANT AUTHORITY” shall mean, the Board of PetEx or such other Official/s or committee of persons as may be specified/authorized by the Board from time to time as Relevant Authority for a specified purpose/s. Relevant Authority shall also include any Regulatory authority specifically specified by PetEx as a Relevant Authority for the purpose of these General Terms and Conditions. The Term “PetEx” and “Relevant Authority” has been interchangeably used for desired giving effect to the clauses and shall have the same meaning and should be read in the context applicable unless specified otherwise.

 

1.59.  “SECRETARY” shall mean a Company Secretary as per the Companies Act.

 

1.60. “SALE ORDER” means an order to sell a commodity permitted for trading on the Exchange.

 

1.61. “SELLER” For the purpose of these General Terms and Conditions unless the context indicates otherwise the term seller includes the selling Client and the selling Trading Member acting as his broker and agent and denotes the selling Trading Member when he is dealing on his own account as a principal.

 

1.62. “SETTLEMENT CALENDAR” OR “SETTLEMENT SCHEDULE” shall mean the dates and times for settlement of contracts, Pay-in, Pay-out, Delivery and all other obligations and rights of Trading Members in respect of every trade/transaction/Contract. The phrase `Settlement Calendar’ and `Settlement Schedule’ shall have the same meaning and shall be used interchangeably.

 

1.63. “SETTLEMENT DATE” means the date on which the outstanding obligations in a Trade are required to be settled as provided in these General Terms and Conditions and/or Special Terms and Conditions and/or as may be prescribed by the Relevant Authority.

 

1.64. “SPECIAL TERMS AND CONDITIONS” means the terms and conditions subject to which any commodity has been offered for trading on PetEx trading platform. The Term Contract note, and Special Terms and Conditions are interchangeably used and have the same meaning unless the context requires otherwise.

 

1.65.  “SUB-BROKER” means any person not being a member of the Exchange, who acts on behalf of a broker as an agent or otherwise for assisting the clients in buying, selling or dealing in contracts through such broker.

 

1.66. “STANDING COMMITTEE” means a committee constituted and empowered by the Board under the General Terms and Conditions for the management of the business and regulatory affairs of the Exchange.

 

1.67.  “STANDING ORDER” means an unmatched order, which is retained on “PTWS” or any other trading system of the Exchange in the order book.

 

 

1.69.  “TRADE” means a transaction for purchase and sale of a commodity resulting from the matching of a bid to buy or a part of a bid to buy with an offer to sell or a part of an offer to sell, or vice versa on “PTWS” or any other trading system permitted by the Exchange.

 

1.70. “TRADING” for the purpose of these General Terms and Conditions shall mean trading in commodities through automated trading system of PetEx as prescribed by Relevant Authority from time to time and shall include all types of categories of trading including auction trading, continuous trading and others. The term Trading shall also include any other category of dealing with commodities defined as such by Relevant Authority from time to time.

 

1.71.  “TRADING DAY” means days other than Sunday and other than days which are declared as Trading Holidays by the Relevant Authority from time to time.

 

1.72. “TRADE FINANCE” means the mechanism implemented by the Exchange for trade finance against pledge of warehouse receipts through the Clearing House of the Exchange.

 

1.73. “TRADING SESSION” of a working day means the hours of that day during which the sale and purchase of commodities are permitted by the Exchange.

 

1.74. “TRADING SEGMENT” or “SEGMENTS” mean different segments or divisions into which the commodities and centers of trading are admitted to dealings on the Exchange, as classified by the Relevant Authority for admission of members to the exchange and for the purpose of trading on “PTWS” or any other trading system approved by the Exchange.

 

1.75.  “TRADING MEMBER” means the person or entity granted membership of PetEx for the purpose of trading on the Trading System of PetEx on his own account and/or on behalf of his Clients and the term includes all types of entities registered with PetEx as Members of PetEx. The term “Trading Member” and “Member” are interchangeably used in these General Terms and Conditions and should carry the same meaning as defined herein

 

1.76. “TRADING SYSTEM” refers to automated electronic online Trading System of PetEx as modified from time to time and means such space, systems and networks as the Company may from time to time determine and which shall be notified by the Board as reserved for trading in specific commodities permitted on the exchange.

 

1.77. “UNIT OF TRADING” means the minimum quantity of a commodity that can be purchased or sold, as may be specified by the Exchange, from time to time in the contract specifications for a commodity.

 

1.78. “UNIT OF QUOTATION” means the specified quantity of a commodity for which the bid or offer price may be given by an exchange member for a commodity.

 

1.79. “WAREHOUSE” means and includes any place of storage, godown, warehouse, tanks, silos, store house, storage tank, etc. where the commodities traded on the Exchange are stored.

 

1.80. “WAREHOUSE RECEIPT” means a document, whether in physical or electronic form evidencing a commodity being held in the approved warehouse.

 

1.81. “WORKING DAY” means a day on which the sale and purchase of commodities is permitted by the Exchange.