Commodity Deposit Form

A Commodity Deposit Form is an official document submitted by a seller in a commodity futures market to declare the intention to make physical delivery of the underlying commodity against an open short futures position at expiry. It initiates the physical settlement process on exchanges such as MCX and NCDEX, triggering the matching of the seller's delivery intent with an open long position holder obligated to accept and pay for the commodity. The form captures key details including the commodity type and grade, quantity, the accredited warehouse or vault where the commodity has been deposited, and the relevant contract specifications. Upon submission, the warehouse issues a warehouse receipt that enters the exchange's settlement system. The deposited commodity must meet exchange-prescribed quality and grade standards — verified by an empanelled assayer — before the deposit is accepted as valid for delivery. Traders holding short futures positions in physically settled commodity contracts — such as gold, silver, crude oil, or agricultural commodities — who do not square off before expiry are obligated to submit a Commodity Deposit Form and fulfil delivery. Retail participants who inadvertently carry positions to expiry without intending delivery should be aware of this obligation well in advance of contract expiry dates.