NSEL CRISIS
CHAPTER 1
NATIONAL SPOT EXCHANGE LIMITED
1.1 INTRODUCTION
National Spot Exchange Limited (NSEL) is the national –level, institutionalized, electronic, transparent spot trading platform for commodities. It is a structured market place, set-up to transform the commodity market by way of reducing the cost of intermediation and thereby improving marketing efficiency. Its state-of-the-art technology facilitates risk free and hassle free purchase and sale of various commodities. NSEL provides customized solution to farmers, traders, processors, exporters, importers, arbitrageurs, investors and other stakeholders pertaining to commodity procurement, storage, marketing, warehouse receipt financing, etc.
NSEL commenced “Live” trading on October 15, 2008. At present, NSEL is operational in 16 States in India, providing delivery-based spot trading in 52 commodities.
1.2 OVERVIEW
India’s No. 1 Commodity Spot Exchange with a commanding 99% market share in the electronic spot market segment
Promoted by Financial Technologies Group and NAFED
Introduced India’s first Commodity Investment product in demat form called e-Series.
1.3 Mission:
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 reduce cost of intermediation by improving marketing efficiency and, thereby, improving producers’ price realization coupled with reduction in consumer paid price.
1.4 Objectives:
The main objective of NSEL is to develop a vibrant electronic spot market in various commodities and to offer a value proposition to different segments of the commodity ecosystem. The idea is to reduce cost of intermediation and create an electronic linkage between buyers and sellers across the country. The Exchange provides counterparty guarantee in terms of quantity, quality and payment. Hence, the participants get a safety net against
NATIONAL SPOT EXCHANGE LIMITED
1.1 INTRODUCTION
National Spot Exchange Limited (NSEL) is the national –level, institutionalized, electronic, transparent spot trading platform for commodities. It is a structured market place, set-up to transform the commodity market by way of reducing the cost of intermediation and thereby improving marketing efficiency. Its state-of-the-art technology facilitates risk free and hassle free purchase and sale of various commodities. NSEL provides customized solution to farmers, traders, processors, exporters, importers, arbitrageurs, investors and other stakeholders pertaining to commodity procurement, storage, marketing, warehouse receipt financing, etc.
NSEL commenced “Live” trading on October 15, 2008. At present, NSEL is operational in 16 States in India, providing delivery-based spot trading in 52 commodities.
1.2 OVERVIEW
India’s No. 1 Commodity Spot Exchange with a commanding 99% market share in the electronic spot market segment
Promoted by Financial Technologies Group and NAFED
Introduced India’s first Commodity Investment product in demat form called e-Series.
1.3 Mission:
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 reduce cost of intermediation by improving marketing efficiency and, thereby, improving producers’ price realization coupled with reduction in consumer paid price.
1.4 Objectives:
The main objective of NSEL is to develop a vibrant electronic spot market in various commodities and to offer a value proposition to different segments of the commodity ecosystem. The idea is to reduce cost of intermediation and create an electronic linkage between buyers and sellers across the country. The Exchange provides counterparty guarantee in terms of quantity, quality and payment. Hence, the participants get a safety net against