Financial Technologies-promoted National Spot Exchange (NSEL), the country’s first online platform for spot trading in farm and industrial commodities, has entered into a strategic alliance with Ludhiana Commodities Trading Services in order to expand its reach across Punjab and Haryana.
Ludhiana Commodities Trading Services is an independent company promoted by members of the Ludhiana Stock Exchange. “Considering the huge marketable surplus of farm produce in Punjab and Haryana, penetration in these states was crucial for NSEL to expand its reach in north India.
These states are particularly important for agri commodities like wheat, rice, mustard, cotton, etc. We have applied to the relevant authorities in these state governments for licence under the APMC Act. Meanwhile, we will commence our operation in gold and silver at centres such as Ludhiana, Amritsar, Jalandhar, etc,” said Anjani Sinha, managing director and chief executive officer of NSEL.
Inaugurated in October this year, NSEL has launched spot trading in cotton, urad, tur, guarseed, gold and silver.
NSEL is looking to enter into similar alliance with stocks brokers’ association in various regional stock exchanges in order to expand its reach. The move will also provide a new business opportunity to the stockbrokers. Discussion is at an advanced stage in a number of states on similar lines.
On Friday, Ludhiana Commodities Trading Services applied to NSEL for a membership, which will enable it to provide trading terminals to all of its 108 members. “All these members are associated with thousands of sub-brokers and franchisees across Punjab and Haryana and through them we can reach to several big and small towns,” Sinha added. With this alliance, NSEL’s total membership will reach 428.
Shri Singhal, the chairman of Ludhiana Commodities Trading Services is hopeful that this initiative will enhance the daily turnover of the company by more than 25 per cent and add to its profitability.
The company, which is an active member of the Multi Commodity Exchange and the National Commodity and Derivatives Exchange, has a daily turnover of Rs 150-200 crore.