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NSEL eyeing 20 commodities in e-series by end of calendar year

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Press Trust of India Bangalore
Last Updated : Jan 20 2013 | 1:43 AM IST

National Spot Exchange Limited (NSEL) is looking at 20 commodities in its e-series products by the end of this calendar year, its top official said.

NSEL Managing Director & CEO Anjani Sinha told reporters that NSEL was "looking at 20 commodities in our e-series commodity investment products in demat by the end of this calendar year". 

NSEL's e-series products (gold, silver, copper and zinc) launched last year were proving to be attractive investment option for investors especially for small investors and High Net worth Individuals (HNIs), owing to their transparent pricing, seamless trading and zero holding costs, he said. 

These products have also created a huge opportunity for stock brokers and agencies selling mutual funds or insurance products to expand their business by registering clients willing to invest in e-series products and earn significant income. 

NSEL will be adding lead, nickel, aluminium, platinum and steel to its e-series products portfolio in the next two to three months and "later, we plan to start agriculture commodities which are non-perishable in e-series", he said.

"We are trading about Rs 700-800 crore every day in the present four e-series products in which e-silver rates the highest followed by gold, copper and zinc.", he said.  

The turnover of NSEL's four e-series products increased from a mere Rs 198 crore in September 2010 to Rs 10,680.7 crore in 2011 till January 25.

Moreover, NSEL recorded the highest daily turnover of Rs 1,358.84 crore for its e-series products on January 21, 2011 with e-Gold witnessing the highest turnover of Rs 256.6 crore on January 25, 2011, and e-Silver seeing the highest turnover of Rs 1,008.2 crore on January 21, 2011. 

In 2010, while equities as a measure of NIFTY, gave returns of only 17.30 per cent, in comparison e-Gold gave a return of over 21 per cent over a period of 10 months and e-Silver over 62 per cent in nine months.

The annualised return in case of gold was 28.44 per cent, in case of e-Silver was 90.8 per cent and in case of copper was 117.3 per cent. 

NSEL recorded an average increase of 200 per cent per month in its turnover during the last four months of 2010 and an average daily turnover of Rs 628.27 crore in January 2011 in the e-series products.

The number of trades in e-series also increased from around 25,000 in August 2010 to over 2.65 lakh in January 2011 (till January 25), Sinha said.

Given the opportunity and huge demand for e-series, a large number of broking houses have evinced interest in becoming members of NSEL.

In order to give more brokerages a chance to become part of this market, NSEL has launched a membership drive till January 31, 2011, during which exchange is offering an admission Rs 7.50 lakh for new members and has received 106 applications in the last two months, Sinha said.

NSEL, he said, has decided to revise its membership fee to Rs 10 lakh for TCM (trading-cum-clearing) category after the membership drive ends on Jan 31, he said. 

NSEL, a national level institutionalised, electronic spot exchange, promoted by Financial Technologies India Limited and National Agricultural Cooperative Marketing Federation of India (NAFED),is also into agricultural commodities.

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First Published: Jan 28 2011 | 4:49 PM IST

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