1: NSEL – Introduction.

2: E-Series an investment avenue.

 National Spot Exchange: Introduction

National Spot Exchange is India’s No. 1 Spot Exchange having 99 %

market share, providing delivery based trading platform in
commodities. ( Cash Segment in Indian Commodity market )

Promoters

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 Features of NSEL

¾ Demutualised Exchange

¾ Transparency in operations and decision making

¾ Dissemination of real time price and trade information

¾ Delivery based Market

¾ Settlement Guarantee & Counter Party Risk

¾ Membership ( TCM, ITCM, PCM, TM )

¾ Capital Adequacy Norms for the Members

¾ Efficient clearing and settlement system

¾ Single day contracts.

¾ Open position at EOD must be settled on settlement day.

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 NSEL: A snapsot

¾ Total number of Members: 567

¾ Total Trading Terminals across the country: 2500
¾ Number of States currently operational: 12
¾ Total number of Commodities being traded: 37
¾ Total Number of commodities contract: 346
¾ Total turn over till Mar 2011 : Rs. 84,825 cr. (E-Series: 66,624 cr)
¾ FY-08-09 :763 cr. FY-09-10 :3404 cr (+350%) FY-10-11 :80657 cr (2268%)
¾ At present, a number of Government companies are using our facilities. MMTC,
PEC,FCI, CCI and NAFED are our members

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 Product offering by NSEL

E-Series (e-Gold, e-Silver, e-Copper & e-Zinc) is an innovative product-line for

those who look at commodities as an asset class

Agricultural Non Agricultural E-Series

Cereals: Paddy, Wheat, Bajra Bullion: Gold & Silver e- Gold
Pulses: Bengal Gram, Green Gram, Black ( Bars & Coins)
Gram, Pigeon Peas, Yellow Peas etc. e-Silver
Edible Oils & Oilseeds: Soybean, Castor Steel: Ingots and e-Copper
Seed, Mustard Seed etc. Billets
e-Zinc ; e-Lead
Cotton, Sugar and Black Pepper

At present, an investor having Rs. 15000, who is bullish about copper buys 1 lot of copper( 1 MT) on
MCX, but if the price crashes, his capital is wiped out. Now, he will be able to buy 50 Kg of copper and
hold in demat account. If the price goes down, he holds. If the price goes up, he books his profit.
 Contract Specification
( Eg.GOLDMUM2 / GOLDMUM0 / WHEATDEL5, E-Gold ,E-Silver)
Trading related information
¾ Contracts Symbol
¾ Trading unit- 1kg/100 gram
¾ Tick size – 10 p/ 1 Rs.
¾ Trading–Session. 10 am 11:30pm
¾ Price quote –per 10 gram
¾ Daily price limits- 5%
¾ Initial margin-5%
¾ Maximum order size-10 kg
Delivery related information
¾ Delivery unit- 1kg/100 gram
¾ Delivery center(s)- Mumbai/Ahmd
Quality Specifications
¾ Grades & Standards -995/999
¾ Tolerance limit for quality /
quantity - discount/premium
Settlement details
¾ Funds/delivery( pay-in & Pay-
out schedule-T+1,T+2)
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 Product Categories

Based on participants :
¾ Farmer’s contract: Only farmer is seller, smaller trading unit, price cess unpaid
¾ Traders' contract: Trades are the seller, large units & Cess paid commodity.
¾ E-Series contracts : Retail/Corporate Investors .
Based on type of Market :
¾ Normal : Price-Time priority. Intraday is permitted. Settlement on closing price
¾ Trade to Trade : Price-Time priority. Intraday is not permitted
¾ Auction Contract: Trade matching at the End of session.(Forward & Reverse Auction)
Settlement Segment :

¾ Physical Segment : settlement of Delivery takes place in physical form

¾ Compulsory Demat Segment : Commodity pay-in takes place in demat form

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 Operation Flow (physical segment)

1. Trade Matching
2. Delivery marking & Obligation to Members through FTP
3. Commodity Deposited by Seller at W-H/Vault
4. Confirmation by WH to Delivery dept. after certification
5. Commodity Pay-In confirmation by Delivery dept to Clearing Dept.
6. Funds Pay-in by Buyer (thru Settlement A/C)
7. Funds pay-out to seller.
8. Buyer detail to the Exchange.
9. DO issued to warehouse.
10. Commodity pay-out confirmation to the Buyer
11. Lifting of commodity.
12. Invoice by the seller.

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E-SERIES An Innovative Investment

First time in the history of Indian commodity market ,NSEL has launched an
unique investment products

‘’e-Series ‘’
e-Gold , e-Silver, e-Copper, e-Zinc, e-Lead
And many more,,,,,,,,,,,
National Spot Exchange: Launched E-Series

¾ For the first time in the history of Indian commodity market, National Spot
Exchange launched a unique investment product in Gold, Silver, Copper and
Zinc in demat form.

¾ Gold, Silver, Copper and Zinc are available for trading with all features and
convenience of equity market scrip and operation.

¾ NSDL and CDSL act as the Depository for holding such commodity in the
electronic form, while the commodity in physical form is kept in the designated
vault/storage.
Essentials of E-series Product

¾ Designated vault for Bullion: Brinks Arya

¾ Registrar and Transfer Agent (RTA): Karvy
¾ NSEL- the issuer .
¾ Associates Depositories - 85 D.P and over 500 members are associated.
¾ E-series products function just like cash segment in equities.
¾ Retail investors, corporate can trade and invest in the instrument.
¾ Only Authorized Dealers appointed by NSEL are eligible to demat and take care of all
compliance.
¾ Used as additional margin at NSEL
¾ Eligible for off market transfer and pledge
¾ Physical conversion of accumulated demat units at designated centres.
¾ No storage / WR charges for storing of E-Series ICINs
 E-series Contract Information

¾ Duration of contract : Single day.

¾ Trading timing: 10:00 AM to 11:30 PM (Mondays to Fridays)
¾ Intra day is allowed, but net position at end of day must result into delivery on T + 2.
¾ Delivery margin is levied at member level on net open position till pay-in day.
¾ Settlement cycle: T + 2 ( from Monday to Friday . Pay-in: 1pm & Pay-out : 5:30pm)
¾ Settlement at closing price (Trade day ). The difference (closing price-trade price)
settled on T+1 day.
¾ Settlement in demat form ( ICINs) only.
¾ Settlement of demat ICIN through the CM-Pool account of members as done in stock
exchanges.
¾ Settlement number disclosed thru DPM / circular/ TWS
National Spot Exchange: Launched E-Series

Commodity e-gold e-silver e-copper

symbol E-Gold E-Silver E-Copper
Trading days & time Mon-Fri ( 10am-11:30pm) Mon-Fri ( 10am-11:30pm) Mon-Fri ( 10am-11:30pm)
Price quote Per gram Per 100 gram Per kg

Trading units 1 gram 100 gram 1 kg

Tick size 10 paise 10 paise 5 paise

purity 995 999 999

Demat units 1 gram 1 gram 1 kg

DPR 5% 5% 5%

Initial margin 5% 5% 5%

Delivery margin 10% 10% 10%

ICIN INC200000007 INC200000015 INC200000023

Settlement T+2 (2011xxx ) do do

Market type Normal do do

National Spot Exchange: Launched E-Series

Commodity e-gold e-silver e-copper

Market code (NSDL) Normal –AA ,Auction : MM do do
Settlement id ( CDSL) Normal: 26 51 200121 do do
Auction : 26 52 200121
Delivery units 8 / 10 / 100/1000 gms 100 / 1000 / 5000 gms 60 kg & multiple

Convesrion charges 200 / 200 / 100 / nil 100 / 200 /200 up to 2.5 ton : Rs.250
per 60 kg

Delivery charges 200 per delivery 150 per delivery 500 per delivery

Delivery centres Delhi. Kol, Chennai, Bom, Delhi. Kol, Chennai, Delhi
Ahmd, Jaipur, Hyd , Bom, Ahmd, Jaipur,
Bangalore Hyd , Bangalore

Taxes (in case of physical VAT & Octri VAT & Octri VAT & Octri
delivery)
Circular ref NSEL/2010/041 NSEL/2010/063 NSEL/2010/177
 How to participate

¾ Client registration (KYC ) with NSEL members (cir : 2008/016)

¾ Opening of CM Pool Account by NSEL members (NSDL & CDSL)

¾ Opening of Beneficiary a/c by clients (KYC as per Depository & DP-Client agreement)

¾ On purchase- after funds pay-in , pay-out is credited to members’ pool account and the
member in turn transfers the same to the clients/ beneficiary account.

¾ On Sale-Clients transfer demat units through DIS slip to member’s pool account in
the respective settlement number.

¾ Members completes DO or Auto DO to Exchange (cir: 2010/205)

¾ No SEBI –Pool penalty (cir- 2010/061)

¾ In case of shortage Auction – on T+2 ( 6:30 pm – 7:30 pm ) and settlement on T+4

 How to participate

¾ Appointment of sub brokers ( cir- 2008 /030 )

¾ Appointment of Authorized Participant ( cir-2010/152)

¾ Physical conversion of E-Series units ( product circulars)

¾ Inter DP swapping ( 2010 /086 )

¾ E-Series as margin ( 2010/187 )

¾ Settlement calendar NSDL /CDSL

¾ No storage charges ( 2010 /113)

Opportunities and Road ahead

¾ 20 commodities under e-series during calendar year 2011, creating a vibrant cash
segment in commodities
ƒ Platinum, steel, nickel, aluminum, etc.
ƒ Some non perishable agri-commodities : Black pepper, castor, etc.
¾ ODIN, ODIN diet, net.net., etc. ( all products of FTIL) available free of cost for NSEL
members.
¾ SIP ( systematic investment plan): software available free of cost
¾ E trader: software available free of cost
¾ Fungibility of e-gold with jewellary in pipeline
¾ Empowering members by organizing awareness programs for their clients
Performance of E-Gold Vs NSE Index
Performance of E- Silver Vs NSE Index
Monthly Turnover (Rs Cr.) : e-Series
Daily turnover (Rs Crore) in April 2011: E-Series
 E-series investment return and ETF comparison

Data as on 19th April, 2011

E-Series Return since launch* (%) Annualized return (%)

E-Gold 30 27.45
e-Silver 139.41 139.80
e-Copper 15.59 36.72

Launch Date:* e-gold: 17th March, 2010 ; e-Silver: 21st April, 2010, e-Copper: 16th Nov, 2010 , e-Zinc: 14th Jan, 2011

NSEL E-GOLD* GOLDBEES ETF SBIGETS ETF

Mar 17, 2010 (Launch Date*) (`/Unit) 1700.80 1648.40 1680.00

Apr 07, 2011 (Previous Close) (`/Unit) 2211.10 2113.60 2156.25
Profit in `/Unit 510.30 465.20 476.25
Return % 30.00 28.22 28.35
e-Gold and All Gold ETFs Turnover Comparison in the financial
year 2010-11
Advantages of Commodity E-Series Contract Trading
 FOW Awards for Innovation 2010:
Exchanges

National Spot Exchange - The winner of Best innovation by

an exchange in the field of product design - South and
Southeast Asia and Australasia

Sophisticated pricing for the grassroots farmer

The system enables farmers in remote regions to sell their products on an

electronic market and collect their money on the same day, giving them the
same price assurance mechanisms as large corporate growers enjoy.
E-Series products are ethical instruments confirmed to the
standards of Islamic finance law & Shariah Compliance
 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