National Spot Exchange Ltd (NSEL), an electronic spot market promted by Financial Technologies (FTIL) and National Co-operative Marketing Federation of India Ltd (NAFED) is gearing up to launch as many as 13 non perishable commodities for trading under its E-series products by end of the current fiscal. The spot exchange already has e-gold and e-silver contracts.
After gold and silver, the exchange is ready to start copper and zinc contacts this month. "Other commodities that NSEL plans to launch under its e-Series products include nickel, lead, aluminium, steel, castorseed, guar, black pepper and mentha oil," Anjani Sinha, MD and CEO, NSEL said in a press conference today.
The e-Series products are designed to reach out to those investors who wish to make small investments in commodities. With a view to achieve wider participation of retail investors, the exchange launched gold and silver contracts in denomination as low as 1 grams and 100 grams respectively.
Just like equities trading on stock exchanges, NSEL under its e-Series products offers investors a platform to trade and invest in commodities by opening a trading account and a demat account with the members of the exchange. Individuals can trade in e-Series products products online or by placing orders through a member of the phone. The units/the payment are credited into the account on T+2 basis and investors are allowed intraday trading as well.
NSEL currently has 350 members and 7500 accounts registered with them. "Our gold and silver contracts see a daily business of Rs 10-15 crore and Rs 15-20 crore respectively," he added. The exchange has empanelled eminent players of the stock market as its depository participants. These players include Eureka, Microsec, Religare, Karvy, Monarch capital to name a few. NSEL also plans to bring in selected jewellers to facilitate easy physical delivery of gold and silver.
