Omkam Capital Markets Private Limited

Safe investment opportunity in

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 Corporate High

Net worth Individuals Retail Investors

Commodity Castor Seed Castor Oil Cotton Wash Oil Paddy Steel

Duration T+3 & T+36 T+5 & T+30 T+2 & T+25 T+2 & T+25 T+2 & T+25

Investment Rs. 10 lacs Rs. 10 lacs Rs. 10 lacs Rs. 3.3-4 lacs Rs. 4.8 lacs

Yield * 13-14% 13-14% 13-14% 13-14% 13-14%

*Yields are at member level and do not include brokerage. They may vary depending of demand and supply.
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Investors can invest money and lock their returns Investor has to buy in near settlement contract and sell in far settlement contract simultaneously Price for both settlement available Exchange provides counter guarantee in respect of quality of goods, weight and counter guarantee risk No basis risk, No link with future contracts

T+2 and T+25 contract offers unique investment opportunity to investors Investor purchases T+2 contract and simultaneously sells T+25 contract Pay-in obligation is on T+2 while Pay-out of the funds will be on T+25. Entire settlement cycle is of 31-33 days. Hence the money remains invested for such period. Price differential between the two settlement dates offers a net annual interest rate of about 13-14% after deducting all expenses Income arising out of such trades are treated as Business Income

 The difference in the buy price in near contract and far contract provides the opportunity for the investors to get the ensured return. Tabular representation of the trade mechanism.
Contract
T+2 T+25 Trade on Same day

Investors
Buy (lower Price) Sell (Higher Price)

Traders
Sell Buy

Fund Movement
Contract T+2 T+25 Investors Traders

Commodity Movement
Contract T+2 T+25
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Investor s

Traders

Bank FD 9.25% for 390 days; NSEL Trading Opportunity 13-14% Bank FD minimum duration 390 days; NSEL Trade duration 33-55 days depending on the contract Individuals have an option of rolling over their position as per their convenience

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COSTS INVOLVED IN BUYING AND SELLING IN PADDY TRADERS CONTRACT QTY. IN BAGS
A 1 2 3 4 5 BUYING IN T+2 Contract Cost of One Truck (300 Bags / Lots) Exchange Transaction Fee: @ Rs 10/- Per Lac Delivery Allocation Charges: @ Rs 90/- Per Lac Brokerage of Member: Assumed at 0.15% CNF Billing Charges: IBMA - Rs 100/- per bill of 300 Bags Total Cost to Investors in Buying Paddy in T+2 Contract B 1 2 3 4 5 SELLING IN T+25 Contract Sale Proceeds of One Truck (300 Bags / Lots) RECEIVABLE Less:Exchange Transaction Fee: @ Rs 10/- Per LAC PAYABLE Less: Delivery Allocation Charges: @ Rs 90/- Per Lac PAYABLE Brokerage of Member: Assumed at 0.15% CNF Billing Charges: IBMA - Rs 100/- per bill of 300 Bags Net Receivable for Investors in Selling Paddy in T+25 Contract C D 1 2 3 4 5 NET EARNINGS PER ONE TRUCK LOAD OF PADDY IN T+25 DAYS SETTLEMENT DAYS CALCULATION Date of Trading Settlement Date for T+2 Contract i.e. FUNDS PAY IN Difference i.e. number of days for which initial margin is blocked Settlement Date for T+25 Contract i.e. FUNDS PAY OUT Number of Days for which funds are invested LESS: ONE DAY on account of utilisation of fund by both parties. G 1 2 3 COST OF INVESTMENT Initial Margin Cost: @ 3% Up To T+2 Day Balance Money: Day T+25 VAT @ 5% debited at the time of funds pay in Total Return calculated for one day investment of H ANNUALIZED RETURNS [ NET EARNINGS*100*365/Total Investment]

RATE Per 100 Kgs

AMOUNT Rs. 405000.00 40.50 364.50 607.50 100.00 406112.50

Minimum Order Size - 300 Bags AMOUNT REQUIRED AT PAY IN WITH VAT

300

2700

405000.00

20250.00

425250.00

300

2748.5

412275.00 41.23 371.05 618.41 100.00 411144.31 5031.81

6-Jan-12 10-Jan-12 4 13-Feb-12

34
33

12150 405000.00

4 33

48600.00 13365000.00

20250.00

33

668250.00
14081850.00 13.04

Trade are backed by collaterals in the form of stock Cash Margin of 1% is levied on the open position of the buyer In case of adverse price movement, Exchange collects additional margin from the members The exchange has defined guidelines for auction/closeout (circular: 029/2008) Adequate Settlement Guarantee Fund Warehouse Management includes Selection, Accreditation, Quality Testing, Fumigation and Insurance

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