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Annexure 1

Contract Specifications of Brent Crude Oil

Symbol BRCRUDEOIL

Description BRENTCRUDEMMMYY

Contract Listing Contracts are available as per the Contract LaunchCalendar.

Contract Start Day As per the Contract Launch Calendar.

Last Trading Day As per the Contract Launch Calendar.

Trading

Trading Period Mondays through Saturdays

Trading Session Monday to Friday: 10.00 a.m. to 11.30 p.m.Saturday: 10.00 a.m. to 2.00 p.m.

Trading Unit 100 barrels

Quotation/ Base Value Rs. per barrel

Price Quote Ex Mumbai (excluding all taxes, levies and freight)

Maximum Order Size 10,000 barrels

Tick Size (Minimum PriceMovement)

Re. 1

Daily Price Limits The base price limit will be 4%. Whenever the basedaily price limit is breached, the relaxation will beallowed upto 6% without any cooling off period in thetrade. In case the daily price limit of 6% is alsobreached, then after a cooling off period of 15 minutes,the daily price limit will be relaxed upto 9%

In case price movement in international markets is morethan the maximum daily price limit (currently 9%), thesame may be further relaxed in steps of 3% with theapproval of FMC.

Initial Margin Minimum 5% or based on SPAN whichever is higher

Addi tional and/ orSpecial Margin

In case of additional volatility, an additional margin (onboth buy & sell side) and/ or special margin (on eitherbuy or sell side) at such percentage, as deemed fit; willbe imposed in respect of all outstanding positions.

Maximum AllowableOpen Position

For individual clients: 4,00,000 barrels

For a member collectively for all clients: 20,00,000barrels or 15 % of the market wide open position,whichever is higher

Delivery

Delivery Unit 50,000 barrels with +/- 2% tolerance limit

Delivery Period Margin 25%

Delivery Center Port installation at Mumbai / JNPT port

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Quality Specifications Brent Blend confirming to the following qualityspecification is deliverable:- API Gravity: Between 38 degree 39 degree- Sulfur: 0.4% by weight or less

Due Date Rate DDR is calculated on the last trading day of the contracton the basis of the market price of Brent crude oil, ex-Mumbai, excluding all taxes, levies and freight, asavailable for this variety from various market sourcesand converted at the Rupee-US Dollar rate prevailingon expiry

Delivery Logic Both

Contract Launch Calendar of Brent Crude Oil

Contract Month Launch DateContractExpiry Date

January 2013 16/10/2012 15/01/2013

February 2013 13/11/2012 12/02/2013

March 2013 14/12/2012 13/03/2013

April 2013 16/01/2013 12/04/2013

May 2013 13/02/2013 15/05/2013

June 2013 14/03/2013 12/06/2013

July 2013 13/04/2013 15/07/2013

August 2013 16/05/2013 14/08/2013

September 2013 13/06/2013 12/09/2013

October 2013 16/07/2013 15/10/2013

November 2013 16/08/2013 13/11/2013

December 2013 13/09/2013 13/12/2013

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Annexure 2

Delivery and Settlement Procedure of Brent Crude Oil Contract

Delivery logic Both Option

Tender day 1st

working day after expiry of contract.Tender and delivery period 1

stto 2

ndworking days after expiry of the contract.

Buyers and SellersIntention On the contract expiry day by 6.00 p.m.Seller will submit copies of relevant documents asevidence that he is holding stock at the time of givinghis intention.

Mode of communication Fax / CourierMatching of Buyers andSellers intention

On the basis of intention received from the buyers andsellers, the Exchange will match the total quantityoffered by the buyers and sellers and with respect tothe matched quantity, the allocation of deliverybetween the buyers and sellers will be done. Theunmatched quantity of open position will be closed outas per DDR and actual delivery will be effected only tothe extent of matched quantity.

Dissemination of theinformation on deliveryintention on TWS

On the contract expiry day by 7.00 p.m.

Delivery period margin 25% margin will be imposed during tender anddelivery period on both buyers and sellers on matchedquantity.

Delivery period marginexemption

Sellers are exempted from payment of margin, ifgoods are tendered during tender days of the contractmonth with all the documentary evidences.

Delivery allocation

- Date- Rate

On expiry date of the ContractAt due date rate (DDR)

Delivery pay-in ofCommodities

E+1 working day by 5.00 p.m. (E stands for expiry)

Delivery pay-out ofCommodities

E+2 working days by 5.00 p.m.

Pay-in of funds E+2 working days by 11.00 a.m.Pay-out of funds E+2 working days after 2.00 p.m.Penal provisions After getting (matching) intentions from the buyer and

seller to take or give delivery, if any of the party fails tohonour his obligations, a penalty of 2.5% of the DDR

will be imposed on him.

Additionally, a replacement cost of 4% of DDR will berecovered from the defaulting buyer / seller.

Out of the penalty, 2% will be credited to IPF and0.5% will be credited to the counter party. While, outof the replacement cost recovered, 90% will bepassed on to the counterparty and 10% will beretained by the Exchange towards administrativeexpenses.

Delivery center Port installation at Mumbai / JNPT port

Deliverable grade The members tendering delivery will have the optionof delivering such grades as permitted by the

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Exchange as per the contract specifications. Thebuyer will not have any option to select a particulargrade and the delivery offered by the seller andallocation by the Exchange shall be binding on buyer.

Odd lot treatment Delivery will be effected only on delivery lot basis. Incase there is any mismatch in the position of sellerand buyer then delivery will not be matched andaccordingly the position will be closed out at DDR.

Storage, Insurance andFreight charges

The freight, insurance, storage and all other expenseswill be on account of the buyer.

Taxes, duties, cess andlevies

Ex Mumbai (excluding all taxes, levies and freight).All other charges, levies or Cess, freight, import orexport duties and taxes applicable at the deliverycenter will be on account of buyer. The seller willissue invoice in the name of the buyer, accordingly.

Extension of deliveryperiod

The Exchange may extend the Delivery Period due toeither force majeure or any other reason, as it thinksfit in the interest of the market.

Due date rate DDR is calculated on the last trading day of the

contract on the basis of the market price of Brentcrude oil, ex-Mumbai, excluding all taxes, levies andfreight, as available for this variety from variousmarket sources and converted at the Rupee-US Dollarrate prevailing on expiry

Legal obligation Every member delivering and receiving warehousereceipt by way of delivery shall provide appropriate taxforms wherever required as per law and as customand neither of the parties shall unreasonably refuse todo so.

Evidence of stock in

possession

At the time of issuing delivery, the Member must

prove to the Exchange that he holds stocks of thequantity and quality specified at the declared deliverycenter by producing bank documents/ LC/ appropriatereceipt.

Delivery of Goods Each delivery shall be in multiples of minimumdelivery lots and shall be designated for only onedelivery center and one location in such center.Delivery will be accompanied with duly dischargedStorage / Shipping / import / export documents,invoice and valid Quality Certificate, as per contractspecifications from the Exchange approved quality

certifying agency/s. Delivery once submitted cannotbe withdrawn or cancelled or changed, unless soagreed by the Exchange. Goods tendered underdelivery shall be in conformity with the contractspecifications.

Closing out of outstandingposition

All outstanding positions on the expiry of contractwhere expression of interest for tendering delivery orreceiving delivery has not been received and suchpositions where expression of intentions have beenreceived but have not found the counter party forhonoring the intentions, shall be closed out at duedate rate and respective pay-in and pay-out of fundsof such close out positions shall be effected on thefollowing day of last day of trading by 11.00 a.m.

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Sampling and Analysis atthe time of delivery

In case the buyer does not agree to the Surveyor'sreport as to the quality of the commodity, he shalldesire for second sampling and intimate the Exchangein writing within 48 hours of the commodity pay-outdate.

Sampling Procedure The system of drawing of samples tendered fordelivery will be as prescribed in the Bureau of IndianStandards procedure. Three Samples shall be drawnas under:

First Sample for the buyer

Second Sample for the seller

Third Sample for final reference, if necessary

If the first sample collected by the buyer and analyzedby the surveyor, out of the exchange empanelledsurveyor/s for the contract, appointed by him,conforms to the specifications, then the goodstendered for delivery shall be accepted and nosubsequent claims from the buyer regarding quantumof rebate or any other indemnification shall beadmissible nor the sellers shall be obliged to pass anysealed samples to the buyer if requestedsubsequently. The sampling methods to be adoptedfor analysis will be decided by the Exchange.

Failu re of First Sample If the first sample as examined by the buyer'ssurveyor fails to conform to the quality standardsspecified, the buyer shall intimate the seller within 72hours of the collection of sealed sample along with acopy of the Surveyors report. The seller shallimmediately send the second sealed sample to

another approved laboratory (out of Exchangeapproved panel), which is also agreed by theExchange. In the event the buyer and seller do notmutually reach agreement with the results of thesecond sample test, then the Exchange shall send thethird sealed sample to any one of the approvedlaboratories / surveyor, as decided by the Exchange.

Final Surveyors report The final approved laboratory and/or surveyors reportshall be forwarded by the Exchange to the partiesimmediately on receipt of the same. In case disputeon quality of the goods allocated to the buyer is raised

by the buyer before funds pay-out to the seller, thepay-out of funds to the seller will be made on thebasis of the final test report received by the Exchange,pursuant to the third and the final test, or it would berecovered from the seller, if the payment was alreadyreleased. The Exchange will also direct the party, inwhose favour the result is declared to collect the costof tests and detention charges from the other party. Incase the commodity stands rejected then it will betantamount to failure on the part of the seller to givedelivery, whose outstanding short position, shall be

closed out as per the Penal provision applicable forseller default or any other rate as decided by theExchange, treating the failure on the part of the seller

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to give delivery as shortage. The decision of theExchange in this regard shall be final and binding toboth the parties.

Obligations of theindependent analyst

In order to ensure that tests are exactly comparableand that the results are consistent, the final approvedlaboratory and / or surveyor shall determine theparticular analytical test by applying the methodsspecified in relevant IS. The said laboratory and / orthe surveyor shall be required to append a certificateor certificates to those effects to the analysis reportissued by the laboratory and/or surveyor.

Appl icabi li ty of Business The general provisions of Byelaws, Rules andBusiness Rules of the Exchange and decisions takenby Forward Markets Commission, the Board ofDirectors and Executive Committee of the Exchangein respect of matters specified in this document shallform an integral part of this contract. The Exchange orFMC as the case may be, may further prescribeadditional measures relating to delivery procedures,warehousing, quality certification, margining, risk

management from time to time.

The buyer shall have to lodge his claim, if any, againstquality and/or quantity of goods/ delivery allocated tohim if any, while retaining the disputed goods in thewarehouse/s (without lifting them out of thewarehouse/s), within 48 hours from the date ofscheduled commodity pay out of the Exchange, failingwhich, no claim shall be entertained by the Exchangethereafter.

Quality certification of the lot is based on the sample/s

selected and therefore, it should not be construed andmean that the entire lot of the goods is duly qualitycertified. In case of dispute arising on quality of thegoods not conforming to the contract specificationsand discovered / found out subsequently, theintroducing member and/ or its constituent who hastendered delivery on Exchange platform shall be liablefor all losses / cost/ closeout charges / claims etcincluding refund of funds pay-out released earlier, asmay be decided by the Exchange in the matter andwhich shall be final and binding to the member. (The

interpretation or clarification given by the Exchange onany terms of this contract shall be final and binding onthe members and others.)