e-series & Investment Products Arpit Mehta eseries@nationalspotexchange.com
National Spot Exchange National Spot Exchange is India s No. 1 Spot Exchange having 99 % market share, providing delivery based trading platform in commodities. A Sister Concern of MCX, the largest Futures Exchange in India Mission Statement To develop a pan India, institutionalized, electronic, transparent Common Indian Market offering compulsory delivery based spot contracts in various agricultural and non agricultural commodities, with a view to reduce the cost of intermediation by improving marketing efficiency and thereby improving producers realization coupled with reduction in consumer paid price. Promoters eseries@nationalspotexchange.com
NSEL: USPs Pan India electronic commodity spot market Offers real time, online, automated trading facilities for its registered members / clients. Order placement, trade matching, execution, matching and confirmation as well as payment is done electronically. Exchange stands guarantee for counter party risks. All Contracts are compulsory delivery based contracts. Offers various innovative exchange products to suit the specific requirement of commodity market stakeholders.
NSEL: Main Areas of Operation I. Electronic market for farm produce II. Customised auction for PSUs, Cooperatives and Corporate, III. e Series products for retail investors IV. OTC platform for bullion dealers www.nationalspotexchange.co m
About e-series Products e-series, unique investment products for enabling small and retail investors to park their funds in commodities in smaller denominations. Investors can electronically buy, sell, hold and accumulate the e- Series products such as e-gold, e-silver, e-copper, e-zinc, e-lead e-nickel and e-platinum in demat form. Backed by the physical storage of commodities in Exchange designated vaults/ warehouses and keeping record of its ownership in electronic form.
e-series product : Features To participate, investors have to open trading account (with any of the NSEL member) and commodity demat account (with any of the Exchange Empanelled DP). Transparent and uniform pan India pricing Trading timing: 10:00 AM to 11:30 PM (Mondays through Fridays) Settlement on T+2 basis. There is no purity issue and storage risk, if invested through e- Series No storage or holding costs for demat units Conversion into physical form at multiple centres
e Series Product Specification Designated vault : Registrar and Transfer Agent (RTA): Depository Trading period Trading session Price Quote/Base Value Delivery unit Settlement Cycle Delivery Location Brinks Arya Karvy consultants Ltd. NSDL & CDSL Monday to Friday (except Exchange specified holidays) 10:00 AM to 11:30 PM Rs Per unit of e Series commodity. Price is exclusive of VAT/ CST as applicable. 1 unit of e Series and multiples thereof. T+2 (2nd working day from the date of transaction) Delhi, Mumbai, Jaipur, Hyderabad, Ahmedabad, Kolkatta, Bangalore, Kochi and Chennai
e-series Products with its launch dates and Achievements
e-series products are ethical instruments confirming to the standards of Islamic finance & Shariah Compliance
Features of Trading Opportunity T+2 and T+25 contract offers unique investment opportunity to investors Investor purchases T+2 contract and simultaneously sells T+25 contract Pay in obligation is on T+2 while Pay out of the funds will be on T+25. Entire settlement cycle is of 31 33 days. Hence the money remains invested for such period. Price differential between the two settlement dates offers a net annual interest rate of about 14 15% after deducting all expenses Income arising out of such trades are treated as Business Income
Short term investment opportunity : Settlement Cycle difference The difference in the buy price in near contract and far contract provides the opportunity for the investors to get the ensured return. Tabular representation of the trade mechanism. Contract Investors Traders T+2 Trade on Same day Buy (lower Price) Sell T+25 Sell (Higher Price) Buy Fund Movement Commodity Movement Contract Investors Traders Contract Investors Traders T+2 T+2 T+25 T+25 www.nationalspotexchange.co m
Thank You National Spot Exchange Limited, 102 A, Landmark, Suren Road, Chakala, Andheri (East), Mumbai 400093. Tel: +91 22 67619900 Fax: +91 22 67619931, E mail: info@nationalspotexchange.com