National Spot Exchange
National Spot Exchange Ltd Type Private Industry Business Services Founded 2005 Headquarters Mumbai, India Key people Shri Shankarlal Guru, Chairman ;Mr. Jignesh Shah, Vice Chairman ; Mr. Anjani Sinha - MD & CEO Products Spot exchange Website www.nationalspotexchange.com
National Spot Exchange is an Commodity Exchange in India, is a joint venture of Financial Technologies (India) Ltd. (FTIL) and National Agricultural Cooperative Marketing Federation of India Limited (NAFED). National Spot Exchange has commenced its Live trading operations in different commodities from Wednesday, the 15th October 2008. It has started trading in Pre-certified cotton bales for Mumbai delivery, Imported Gold bar and silver bar for Ahmedabad delivery from the day one an now has added number of commodities for the spot trading.
Its stated mission is to develop a Common Indian Market, by setting up a national level electronic spot market and providing a state of art trading, delivery and settlement facilities in various commodities, which can be accessed from across the country.
- Selling - Provide an electronic trading and auction platform to sell the commodities (Agri, bullion and Metals).
- Procurement - The bulk buyers can procure the agri-commodities directly from the farmers through electronic platform provided by the NSEL.
- Warehousing - Exchange is providing warehousing facilities for various commodities and also facilitate to sell it through the electronic platform to the bulk buyers and millers situated across the country.
- Finance- Provides commodity procurement finance and warehouse receipt finance.
- Investment- Provide investment instruments for the investors investing in commodities. E-series products launched by NSEL can be bought by the investors for accumulation in the demat account just like the shares in the equity market. Currently, E-Gold, E-Silver and E-Copper are available for the investment.
arbitrage: A trader can do arbitrage using different prices available for the same commodity.
- Single day trading contracts
- Intra day trading with settlement of obligation on net basis
- All positions outstanding at end of the day resulting into compulsory delivery
- Demat delivery facility available
- Fungibility of delivery between National Spot Exchange and MCX with common ICIN nos
- Loan facility against pledge of demat / warehouse receipt
- Cash futures arbitrage opportunity
A new form of commodities investment: Initiative of NSEL with E-Series Products
For the first time in India, National Spot Exchange (NSEL) has introduced E-Series products in commodities. Retail investors can now to trade and investment in commodities like they invest in the equities. This will be a unique market segment, which will function just like cash segment in equities, but offering commodities in the demat form in smaller denominations.
The clearing and settlement pay-in and pay-out will be based on settlement cycle as per the practice in the stock market. This instrument will provide ample opportunity to the mass as secured investment in their product basket diversification.
NSEL has launched its first product under the E-Series as E-Gold on Wednesday, the 17th March, 2010. Clients/ retail investors, who wish to purchase E- GOLD units are required to open their beneficiary account with NSEL empanelled Depository Participants (DPs) and inform their client ids and DP ids to their respective members to enable them to transfer the units to the respective client’s accounts. On receipt of demat ICIN in the CM-POOL account, the member should transfer the same to the beneficiary account of the respective client
NSEL has made necessary arrangements with National Securities Depository Limited (NSDL) and Central Services Depository (India) Ltd. (CDSL) as the depository for holding commodity units in the electronic form.
Commodities traded with their delivery locations
Commodity Delivery Centre Arecanut Shimoga, Channagiri (Karnataka) Bajra Jaipur (Rajasthan), HAFED Warehouses Castor Seed Palanpur, Kadi, Jagana, Mehsana, Patan, Chandisar, Gandhidham, Visnagar, Panthawada, Sidhpur ( Gujarat ) Castor Oil Kandla ( Gujarat ) Chana Kantawala Indore ( Madhya Pradesh) Cotton Bales Mumbai, Yeotmal, Nagpur, Wani, Amravati, Akola, Khamgaon, Dhule, Jalgaon, Aurangabad, Parbhani, Nanded, Parli (Maharashtra),Himmatnagar, Rajkot ( Gujarat), Adilabad, Nizamabad (Andhra Pradesh) Desi Chana Delhi, Bikaner, Jaipur, Sri Ganganagar (Rajasthan), Ganj Basoda, VIdisha (Madhya Pradesh), Osmanabad (Maharashtra), Gadag (Karnataka), Gold Ahmedabad, Rajkot (Gujarat), Mumbai (Maharashtra), Kolkata (West Bengal), Hyderabad, Vijayawada (Andhra Pradesh), Chennai (Tamil Nadu), Jaipur (Rajasthan), Delhi Groundnut Jaipur, Bikaner, Jodhpur (Rajasthan), Maliya Hatina (Gujarat) Guar Seed Bikaner, Jaipur (Rajasthan) Guar Gum Jodhpur (Rajasthan) Jeera Jodhpur (Rajasthan) Lemon Tur Mumbai (Maharashtra) Maize Maheshkhoont (Bihar), Jalgaon (Maharashtra), Umerkote (Orissa), Davangiri (Karnataka) RM seed Jaipur, Jodhpur (Rajasthan) Silver Ahmedabad, Rajkot (Gujarat), Mumbai (Maharashtra), Kolkata (West Bengal), Hyderabad (Andhra Pradesh), Chennai (Tamil Nadu), Jaipur (Rajasthan) Urad FAQ Mumbai (Maharashtra) Wheat Rajkot (Gujarat), Jaipur, Chomu (Rajasthan), Delhi, Vidisha (Madhya Pradesh) Yellow Peas Mumbai (Maharashtra) Soyabean Ganj Basoda, Vidisha (Madhya Pradesh), Jalgoan, Nandurbar (Maharashtra) Cottonseed Wash Oil Kadi (Gujarat) RBD Palmolein Mundra- Adani, Kandla- Gokul, Kandla- GUJOIL
Agri-Commodity Non-Agri Commodity Intra-day (Agri & Non-agri) Monday - Friday 10.00 to 18.00 hours 10.00 to 23.30 hours 10:00 to 16:00 Saturday 10.00 to 14.00 hours 10.00 to 14.00 hours No Trading
Importance of National Spot Exchange
- National level Market with efficient price discovery
- Better price realization for farmers and traders.
- Warehouse receipt financing.
- Increasing in bargaining power. Farmers can get his own selling price.
- Market Intelligence Report.
- Increase in holding capacity. Farmers can enjoy off-season premium after availing bank loan against warehouse receipt instead of selling his produce during harvest season.
- Integrate the Fragmented Markets Electronically
- Easy procurement of multiple commodities at multiple centers from one centre
- Efficient Spot Price Discovery, Price Dissemination Small Producers and Traders get equated with large consumers or Traders
- Reduction in Number of Intermediaries involved
- Availability of Warehouse Receipt Financing
- Grading, Quality Certification and Standardization of Commodities
- Availability of Multiple Contracts with Multiple Delivery Centers
- Trade and Payment guarantee
- Transparent Spot Price available for DDR calculation
- NSEL zeroes in on five states for spot trading . Business Standard, June 08, 2008
- NSEL signs MOUs with states. The Financial Express, June 04, 2008
- February date for spot trade in farm crops, The Telegraph, Jan 16, 2007
- Spot exchange centres to be set up in Kerala, BusinessLine, Nov 29, 2006
- MCX to roll out spot exchange in January, BusinessLine, Nov 24, 2006
- National Spot Exchange website
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