National Spot Exchange Limited (NSEL) is launching gold delivery centres in Uttar Pradesh to encourage retail participation in gold trading.
The delivery centres would be opened up in Lucknow and Kanpur by the end of May.
Besides, NSEL will launch a copper delivery centre in the industrial hub of Moradabad in western UP.
“The delivery centres would enable investors convert their dematerialised community into physical delivery,” NSEL managing director and CEO Anjani Sinha told Business Standard.
Meanwhile, NSEL will soon add ‘e-Nickel’ to its e-series basket of spot market for commodities. E-series offers commodity investment products in demat form and were introduced in 2010 to meet the growing demand of retail investors to build commodity investment portfolio. Currently, e-series comprises gold, silver, copper, lead and zinc metals.
“NSEL has almost 99 per cent market share in spot commodity market,” he informed. It also functions in agricultural commodities — paddy, wheat, bajra, soybean, castor seed, cotton, sugar and black pepper.
“NSEL clocks daily turnover of about Rs 1,000 crore, of which agricultural commodities account for Rs 100 crore,” Sinha added.
He lamented that UP had not amended its Agriculture Produce Market Committee (APMC) Act to allow active participation of farmers and traders in agricultural produce spot markets.
“At present, Gujarat, Maharashtra, Karnataka, Rajasthan, Madhya Pradesh and Bihar have amended their APMC Acts, which allows spot markets get license from the respective agricultural marketing boards for trading,” he explained.
Sinha said UP had good potential of spot trading in wheat, sugar and mentha, which would immensely benefit farmers and consumers.
Meanwhile, NSEL has 560 and 20 members in India and UP respectively.
NSEL is an electronic and demutualised commodity spot market promoted by Financial Technologies (India) Limited and National Agricultural Cooperative Marketing Federation of India Limited (NAFED).
