Dated: 5th July , 2006
Uco Bank invites Request For Proposals (RFP) to set up
Functional Derivative Desk
Uco Bank invites Request For Proposals (RFP) to set up within a stipulated
time Functional Derivative Desk in the Bank and to put in place proper systems and
procedures for its operation. This shall inter alia include drawing up a policy document
for derivative operation, defining organizational structures, evaluating man-power
requirement , putting in place risk management structures / procedures, preparation of
procedures/accounting manual , drawing of business plan etc., implementation and post
implementation assistance in all aspects. The role of consultants shall broadly be as
1. Drawing up a policy document for the derivatives operation of
the Bank which inter alia to include:
The purposes for use of derivatives.
The types of proprietary transactions to be undertaken (hedging/trading)
The variety of derivatives products to be offered to the clients and
procedures to be followed for undertaking client derivatives business.
Systems for measuring risks vis-à-vis internal control.
Set up limits for Banking Book and Trading Book.
The basis for setting up counter party exposure limits.
Setting up stop loss limits.
Reporting - MIS, Internal & statutory.
2. Defining Organisations Structure :
Segregation of Front, Mid and Back Office defining their roles and
Draw line of responsibilities of different tiers.
Evaluating Manpower requirement.
3. Preparation of Procedural Manual :
3.1 Front Office
- Pre deal execution procedures
- Deal execution
- Post deal execution
- Deal ticket samples
- After Office hours trading
- Dealing with brokers
- Front office reports
3.2 Mid Office:
- Pre deal procedures
- Post deal procedures
- Market data updating
- Back testing
- Stress testing
- Typical report formats
- Setting up counter party limits/dealer-wise limit/production-wise limit
- Review of the portfolio
3.3 Back Office :
- Post deal execution
- Market data updating (Back Office System)
- Monitoring daily inflow outflows
- Regulatory reporting
- Documentation for proprietary/client deals
3.4 Decision making process
3.5 Review procedure
4. Evaluation of the existing pricing /accounting system already in place and
suggestion for improvement thereof.
5. Accounting and taxation including formats of books and registers to be
6. Drawing up a Business Plan.
The Business Plan will include products to be offered to Clients, marketing strategy
and Derivatives Strategy. Business plan should define targets and progress parameters.
7.Implementation of the above :
The consultant will also assist in the implementation of the above-mentioned policies
and procedures. The consultant shall arrange for training of various levels of staff and
selection and training of personnel for front, mid and back office.
8.Post implementation assistance :
The consultant will assist the derivatives desk in structuring the products and will
provide product ideas to the desk depending on client requirement vis-à-vis market
situation for a period of one year after setting up the derivatives desk. The consultant
will also assist the derivative desk in case operational and procedural problem emerges
Companies/Firms which are eligible as per the criteria laid down below should submit
their Technical Specification as well as Financial bid in separate sealed envelopes within
2 weeks from the closing date of advertisement on the website. Technical Specification
should not contain any reference of the price, but to give details of the approach to be
adopted by the consultant for setting up the desk as stated above and time frame needed
for the same. The bid to also contain the process to be adopted by the consultant in the
light of broad requirements of the same. The financial bid to contain price/fees/charges
to be charged by the consultant along with the terms and conditions of payment.
- Successful track record of Setting up/advising setting up of Derivative Desk ( in at
lease 5 institutions - Banks/PD/FI/Corporates)
- A minimum experience of two years in setting up and advising clients in setting up
- 3.Managing body of the firm should have experience in Forex & domestic market with
one of the members having an experience of at least 5 years in the relevant field.
- Team Leader should have experience of working with reputed organization in the field of
forex/domestic/derivatives ( list of institutions and name of contact persons to be
- Members of the team that shall work for the Bank should have at least 2 years experience
in forex and domestic market and head of the team should have 5 years experience in the
- The firm should have expertise in formulating Derivative/Risk Management policies for
- Firm should have expertise in imparting training in the field of derivatives.
- Firm to have annual turn over of Rs. 50.00 lacs with a minimum Net worth of Rs. 100.00
Based on the technical proposals received from applicants , the Bank shall shortlist
qualified bidders. Such short listing shall be based on eligibility criteria as defined
The short listed bidders would be invited by the Bank to make a presentation on their
capabilities and abilities to execute the project within a given time frame.
The technical bids will then be evaluated for preparing a final short list of bidders.
The interested parties may submit their applications containing technical and financial
of bids as per the prescribed format (annexed) by post/courier/hand delivery to the under
noted address so as to reach before 5.00 p.m. on 28-07-06.
The General Manager,
Treasury & Investment Management Department,
7th floor, 10, BTM Sarani,
Kolkata - 700 001.
No request received after this date and time shall be entertained.
Other important instructions:
- Incomplete responses or responses not in tune with the above deliverables as stated in
the RFP will be rejected.
- The bank reserves the right to reject any or all of the responses to this
advertisement/RFP without assigning any reasons.
- Offer shall be submitted only for the full Schedule of Requirements. Offer for part
schedule will not be considered.
Technical Proposal : The consultant must submit one hard copy
and one soft copy for this part. One of the hard copies should be marked as
original. Cover containing technical proposals should be super scribed as
"RFP-DER-TP" in bold letters.
Financial Proposal : Financial bids must be enclosed in a separate
sealed envelope. The consultant should provide only the hard copy. Cover containing
financial proposals should be super scribed as "RFP-DER-CP" in bold letters.
The best and firm price should only be quoted. All prices should be in Indian Rupees
and should be inclusive of all applicable taxes. However, the consultant should provide
break up of the base price, taxes and duties for the consultation.
Escalation in price quoted is not permitted for any reason whatsoever. Prices quoted
must be firm till complete execution of contract.
An Indian Agent on behalf of the Foreign Principal or the Foreign Principal directly
can bid in a tender but not both.
All disputes and differences of any kind whatever arising out of or in connection with
the RFP/Purchase order shall be subject to jurisdiction of Kolkata Courts.
Notwithstanding anything contained hereinabove , in case of any dispute , claim and
legal action arising out of this RFP, the parties shall be subject to the jurisdiction of
courts at Kolkata, India only.
Use of this RFP : This document or any other document related to this RFP or any
portion thereof shall not be used for any other purpose , except for submission of the
proposals in response to this RFP.
Bank information security and confidentiality : The consultants should maintain secrecy
standards consistent with the secrecy of the Bank. These include, but are not limited to,
strict control of access to data and maintaining confidentiality of information gained
from this RFP, or while gathering further information from the Bank. Information
pertaining to the Bank obtained by the consultant as a result of participating in this
project is confidential and must not be disclosed without a written authorization from the
General Conditions :
No costs incurred by applicant in making this offer in providing clarification or
attending discussions, conferences, making presentations or site visits will be
The Bank reserves the right to cancel the bid in case it is found at a later date that
the details furnished by the bidder are false and also to take action against such bidders
for any damages that may be caused to the Bank.
The Bank will have the liberty to short-list suitable firms who meet the Bank's
requirements, from the responses received.
The Bank reserves the right to shortlist consultants, based on the requirement of the
Bank and consider them for the next stage of evaluation. The decision of the Bank in this
regard shall be final.
The Technical Bids will be opened in the presence of bidders who choose to attend the
meeting . The Time Schedule for submission and opening of the bid shall be as under :
|Bid calling date and time
|Bid closing date
|Technical bid opening date & time/venue
||To be announced through Bank's web site at least 5 days before the
|Contact person for collection and Clarification regarding Bids
Assistant General Manager, Treasury &
10, BTM Sarani,
Kolkata- 700 001.
REQUEST FOR PROPOSAL (REP)
||Name of the Company/ Firm
||Date of Incorporation
||Corporate Office Address
||Name (s) of the Contact Person(s)
||Phone No. (s)
||Fax No. (s)
||E-mail Address (es)
||Name & address of Directors/ Partners
||Details of Organizational Structure along with name, experience,
qualification of Team Leader
||Details of the team members viz., name, age, qualification (Academic/
Professional), Experience - No of years, Assignments handled
||Name of Banks / PDS/ FIs where derivative desks set up along with the name
of contact person of the institution and year of implementation
||Experience in setting up derivative desks and advising clients in the
field ( in years)
||Net worth of Partners of the Firm/ Firm/ Company as on 31-03-06 (in Rs.
||Turn over of the Company/ Firm as on 31-03-06 (in Rs. Lacs)
* Attach certificate from a Chartered Accountant certifying the Net
Worth & turn over of the Partners/ Firm/ Company
||Technical information/ Specification: This inter alia, to contain firm's/
Company's response :
||To each item of eligibility criteria and
||To the various facts of its expected role as given at point No. 1 to 8
||Financial information: - To be supplied in a sealed
||Detailed Break up of cost price: