The Trades & Settlement Are Guaranteed By The Exchanges:

Both the commodity exchanges have got respected Indian corporates as their promoters. Multi Commodity exchange of India, promoted by Financial Technologies Ltd has got on board institutions such as SBI, HDFC Bank, Canara Bank, Corporation Bank, Bank of India, Union Bank of India, Bank of Baroda. The National Commodity and Derivatives Exchange (NCDEX) has got NSE, ICICI, NABARD, CRISIL, LIC, PNB, Canara Bank as the major share-holders.
Also the exchange guarantees the settlement of trades and so eliminates the counter-party risk in the transactions.
The exchange for this purpose maintains a Settlement –Guarantee fund akin to the stock exchanges.

Physical Deliveries In Commodity Futures Exchanges:

In order to maintain the futures prices in line with the spot market, the exchanges have made available provisions of settlement of contracts by physical delivery. It is seller’s choice in most of the contracts. For some contracts delivery has been made compulsory
Specific cities/mandis for specific commodities have been mandated as the delivery centres. The seller of commodity futures, may choose to deliver physical stock instead of settling the positions by cash, in which case he has to to deliver the stocks to the exchange and accredited warehouses. The buyer of the commodity futures, if he is interested in physical delivery would be matched with a seller and would be required to take delivery. World-wide commodity futures are generally used for hedging and speculation and hence physical deliveries are negligible. However the possibility of physical delivery has made these markets more attractive in India.
In case of NCDEX it is mandatory to open a Demat account with an approved DP by the buyer and seller if they wish to take/ give delivery of goods.

VAT / Sales Tax Registration

If the trade is squared off no sales tax is applicable. The sales tax is applicable only in case of trade resulting into delivery.

Transaction Charges:

Transaction charges are levied bythe exchanges to the tune of Rs. 4 to Rs. 6 per lakh of transaction amount.

Expiry Date:

At NCDEX the general contracts expire on 20th  day of each month. If 20th happens to be a holiday the expiry is on the previous working day.
At MCX the general expiry day is 15th of every month. If 15th  happens to be a holiday the expiry is on the previous working day.