Auction Purchase Cover – Option – 01

Buyer Advantages Large seller base across the country Buyers cross geographical barriers for procuring products. Administrative cost reduction No administrative and transaction charges for buyers. Ease of procurement Large seller base enables the buyers in procuring full / partial quantities with competitive prices especially when the product is not easily available with a single seller. www.NCDFIeMarket.com

Seller Advantages Coordination in the process NCDFI eMarket coordinates the entire process i.e. supplies and payments. Opportunity to participate Even small suppliers can participate in these auctions provided they meet the quality parameters. Qualified buyers Buyers requirement is clearly specified which helps sellers to screen every buyer before participating in auctions. www.NCDFIeMarket.com

Auction Process Overview Buyers e-Portal Sellers Quantity required, Location, Reserve Price, Delivery period Information, auction setup PRE- AUCTION Buyers e-Portal Sellers Places bid quantity & FOR price Can observe process AUCTION Winning quantity, price & details of Sellers will be intimated Buyers e-Portal Sellers POST AUCTION Winning quantity will be intimated www.NCDFIeMarket.com

How does auction work? The trading event managed by NCDFI The trading process is an “Yankee Reverse Auction” Required quantity, place of delivery, delivery period, minimum quantity for each seller, reserve price is announced Bidders bid the volume and bid FOR price which is equal or less than the ‘Reserve Price’ www.NCDFIeMarket.com

Auction Terminology Reserve Price: FOR price buyer willing to buy Maximum Required Quantity (MRQ): Maximum quantity buyer willing to buy Minimum Bid Quantity (MBQ): Minimum quantity seller needs to bid in auction www.NCDFIeMarket.com

Bid rules Sellers can quote their offer quantity & FOR Price. Sellers can view tentative quantity allocated to them & their quoted price. Sellers can revise their price bids downwards and only latest bid will be considered. In case a bid is received 3 minutes prior to the auction closing time, the auction schedule shall be extended for 5 more minutes. There shall be maximum 3 such extensions. www.NCDFIeMarket.com

Scenario 1 Required Quantity: 1,000 MT with a reserve price of ₹ 17.00 Time Bidder FOR Price ( ₹ per kg) Bid Qty (MT) 09:00 A ₹ 17.00 1,000 09:05 B ₹ 16.90 700 Bidder B would be awarded 700 MT at a price of ₹ 16.90 Bidder A would be awarded 300 MT (1,000-700 MT) at a price of ₹ 17.00 www.NCDFIeMarket.com

Bidders can view their allocation & price Scenario 2 Required Quantity: 1,000 MT with a reserve price of ₹ 17.00 Time Bidder FOR Bid Price ( ₹ per kg) Bid Qty (MT) A B C 09:00 ₹ 17.00 1,000 - 09:05 ₹ 16.90 700 300 09:27 ₹ 16.80 600 400 09:29 ₹ 16.70 Bidder A would be awarded 700 MT at a price of ₹ 16.70 Bidder C would be awarded 300 MT (1,000-700 MT) at a price of ₹ 16.80 Bidders can view their allocation & price www.NCDFIeMarket.com

Scenario 3 Required Quantity: 1,000 MT with a reserve price of ₹ 17.00 Time Bidder FOR Price ( ₹ per kg) Bid Qty (MT) 09:00 A ₹ 17.00 300 09:05 B 200 Bidder A would be awarded 300 MT at a price of ₹ 17.00 Bidder B would be awarded 200 MT at a price of ₹ 17.00 Buyer can re-auction for the remaining quantity on a later date with revised or same reserve price. www.NCDFIeMarket.com

Registration & Transaction Charges Registration Rs. 5,000/- Annual Maintenance Fees Rs. 5,000/- Buyer Transaction Fees Nil Seller Transaction Charges Flat 0.40% of the transaction value These fees are excluding applicable GST. www.NCDFIeMarket.com

Security Deposit Security Deposit (EMD and Advance Transaction Fee) As defined by Buyers subject to a minimum of 0.50% of the trade value (Applicable to Sellers) www.NCDFIeMarket.com

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