MCX delivery of commodities

Commodities
1

Hi all
I see there are couple of posts, where how one can get the MCX delivery of commodities but none of them have answered for it, hence creating a new post here.

for example lets say I am interested to buy 10 grams of gold but outside bullions/shops they sell at higher rate than the mcx trading rate. So to avoid buying the gold from them, I try to buy from MCX and take delivery, so pricing is fair. How can one get the delivery given such scenarios to buy gold outside MCX.

to add, I tried searching the mcx web. Links are giving error 500. https://www.mcxindia.com/search?indexCatalogue=mcxindia-search-index&searchQuery=gold+delivery&wordsMode=0

I am unsure, why mcx itself has no info, is it way of hiding info, I dont know. Anyone in the tradingqna help me with above query.

2

As you may already know, MCX contracts are compulsory delivery contracts, meaning that upon contract expiry, you will receive the physical commodity.

The delivery process will be done by the broker if they are facilitating MCX physical delivery

Delivery Process:

  1. Open a COMRIS Account: Similar to a demat account, you will need to open a COMRIS (Commodity Receipts Information System) account to store your receipts.
  2. Receipt of Delivery: If you have a COMRIS account and a GST number, the counterparty will send you a delivery receipt post the expiry of your futures contract. This receipt will be stored in your COMRIS account.
  3. Vault/Warehouse: The deliverable commodity will be securely stored in a designated Vault or Warehouse.
  4. Collecting the Commodity: Once you receive the delivery receipt, you can visit the assigned Vault/Warehouse, show the receipt, and collect the commodity.

Associated Charges (Approximate):

  1. Physical Delivery Brokerage Charges
  2. C&F (Clearing & Forwarding) Agent Charges: Typically range from 0.4% to 1% of the contract value. The C&F agent will assist with GST settlement and facilitate billing in accordance with the delivery location warehouse standards.
  3. Warehouse Charges: These include fees for storing the commodity and handling charges. The specific amount may vary depending on the commodity and warehouse.
  4. Transportation Cost and Lifting Charges: These costs are associated with transporting the commodity from the warehouse to your location. Charges will vary depending on the distance and quantity.
  5. GST charges: For precious metal it is 3% and for other metals its 18%.

Because of the complexity of the product getting delivered and the unnecessary additional charges, most of the brokers doesn’t allow MCX contracts getting physical delivered.

4 Likes
3

thanks for the detailed explanation.

wrt Point number2 in delivery process, is GST number a must for delivery? How does individuals can get recepit of delivery in case of non-gst or individual holders.

4

GST is must required,
since most individuals don’t have GST numbers, they can get the help of a C&F agent

The C&F agent will assist with GST settlement and facilitate billing in accordance with the delivery location warehouse standards.