1. Auction Purchase
Cover – Option – 01

2. 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.

3. 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.

4. 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

5. 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’

6. 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

7. 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.

8. 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, MT) at a price of ₹ 17.00

9. 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, MT) at a price of ₹ 16.80
Bidders can view their allocation & price

10. 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.

11. 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.

12. 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)

13. Thank You NDDB D-Lab Campus, Post Box 79, Anand 388 001
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Thank you Page