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User manual

National Spot Exchange Warehouse Receipt Trading through

NSEL-e-Auction

National Spot Exchange Ltd, Mumbai

FT Tower, CTS No-256 & 257, Suren Road, Chakala, Andheri (East), Mumbai – 400 093

Tel.: 022 – 67619911 Dial: 8 Fax: 022 – 66864050

www.nationalspotexchange.com email: eauction@nationalspotexchange.com

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User Manual

1. Introduction:

NSEL warehouse receipt trading system (NWRTS) is the web based e-auction

platform, which enables a warehouse receipt holder to sell his warehouse receipt in

a transparent manner. Any buyer registered as a participant with the Exchange is

able to participate in bidding. There is no registration fee payable by the buyer or

seller for registration. The participants can access through the link http://e-

auction.nationalspotexchange.com/NSELAuction/Common/Home.aspx or through

www.nationalspotexchange.com. This is a web based platform, which can be

accessed through internet from any location. This is separate from the existing

Exchange TWS based trading platform. In order to participate in NWRTS e-auction

platform, the participants are not required to be either members or clients of any

member. They can directly register themselves with the Exchange as

participants/bidders after completion of KYC through the module. However in case

of seller, the registration is done by the Exchange after receipt of the relevant KYC

documents and duly filled registration form. The seller/ bidder registration, log in,

Sale request / RFQ generation, bidding, order matching, Trade confirmation, etc .is

done through NWRTS system. The bidders shall transfer funds through the payment

gateway which can be accessed through the same system. The process involves

following steps:

Bidders & Sellers registration.

Initiate new RFQ and Demands

View List of NWR , RFQ , Demand

Place Bids on RFQ

Transfer of Funds towards EMD & Settlement.

View daily trade & settlement reports

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2. Users Registration

2.1 Log in: Bidders can click ‘’NSEL-e-Auction’’ which is available on the NSEL

web site www.nationalspotexchange.com or path http://e-

auction.nationalspotexchange.com/NSELAuction/Common/Home.aspx

Users can log in to NSEL ware house receipt trading system (NWRTS) by

using their User Id and password.

2.2 Bidders Registration: In order to register as New USER /participant , the

bidder needs to enter user details, such as name, address, PAN number,

Bank account number , mobile number, e-mail id, commodities which he is

interested to buy, etc . PAN number is mandatory for KYC registration as

PAN number is treated as the user id for the bidder. After necessary

entry, the bidder should upload the scanned image of (PAN card, Proof

of address and canceled cheque) through the system or fax the

documents to the Exchange at 022- 67269524. . It is suggested that

bidder should change his Password during their first login. They should

also keep on changing their password frequently. Using their login, bidders

will have a facility to select/de-select commodities in which they

intend/show interest of participation in future. Based on the interested

commodities, bidders will be notified of scheduled auctions through mail.

Fig 1.00 User Registration Form to Capture Personal Details and Interested Commodity Details

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2.3 Sellers Registration: For registration, seller should provide a duly filled

registration form and supporting documents to the Exchange. Format of

Registration form is available in the Exchange web site under resource

center downloads.

Seller Registration form.doc

Upon receipt of the registration form and documents, E-auction admin

shall create user id and password and send to the seller at his registered

email id

Fig. 2.3 Login Screen

2.4 After login, system will redirect the user to his respective area. After

log in, the BIDDER:

Will have facility to view his profile details where he can select

commodities of his interest

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Facility to change his password

Facility to view the list of commodities offered for sale

Facility to create a Demand for auction in interested commodity,

facility to close a created demand and facility to view their demand

list.

View the Request for quote (RFQ) list. Placing bid(s) against

individual RFQ.

View his bid list where information will be provided about his

successful bids.

View various reports to their traded positions, his obligation and final

settlement.

2.5 Similarly, after log in, the Seller:

Will have facility to view his profile details where he can select

commodities of his interest

Facility to change his password

Facility to view the list of commodities offered

Facility to view the list of NWR generated in his name. Facility to

know status of the generated NWRs.

Facility to add new NWR.

Facility to view list of RFQ’s & their status. Facility to initiate auction

session on a RFQ.

View the depth created in the auction session.

Facility to view the status and list of demand(s) created by the

bidder(s).

Will have access to various kinds of reports

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3. RFQ: Request for Quote

3.1 Creation of NWR: The Seller needs to deposit the commodities meant for

sale at the Exchange accredited warehouse and obtain QC and Warehouse

receipt for the same. Thereafter, the seller can create NWR in the e-Auction

system on his own. The parameters to be declared while creating NWR are

Warehouse Receipt number, Lot number, Quantity, date of deposit, QC

number, QC date, Validity etc.

Creation of NWR:

Fig 3.1 Creation of NWR page available only to seller, post login

3.2 Creation of RFQ: After generation of NWR; system will permit him to

initiate RFQ, once the created NWR is activated by the exchange. The details

to be filled up while initiating RFQ are

Volume: Total available Quantity

Trading Start Date and Time

End Date and Time (Session End Date)

Settlement Date : Derived Field = Session end Date + 5

Floor Price: Not to be disclosed to the bidder.

Buffer Price : Will be disclosed to the bidder

Minimum Lot Size : Bid lots should be in multiple of Minimum Lot size

Margin percentage: % of Trade value.

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Once Seller initiates RFQ, the mails shall be sent to the eligible bidders

immediately. Eligible bidders are those who have done registration or created

their own intention for specific commodities.

Fig 3.2 creation of RFQ page available only to the sellers post login

3.3 View of RFQ by the bidder and participation:

Bidder is allowed to view all current and scheduled RFQs for

commodities, where auction is to be initiated. This is for the purpose

of dissemination of information and generating interest among

bidders.

Once the auction session starts, the bidder can place bid (Quantity,

Price). However, the seller cannot place buying bid on any RFQ

initiated by him.

No order below the buffer price will be accepted by the system. Please

note that buffer price shall be visible to the market. However, floor

price fed by the seller will not be visible to the buyer.

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Bids submitted above floor price will be accepted by the system. Bids

submitted below floor price but above Buffer price will also be

accepted by the system. All such bids pending in market till end of

trading session shall form the depth. At End of trading session, the

bids above floor price are marked to trade in descending order till the

seller quantity is available. The trades are matched on price time

priority logic.

During trading session, only betterment of price by the bidder is

permitted (upward revision). Cancellation of bid is not allowed.

Downward revision of bid, either in quantity or price is also not

allowed.

At end of session, the highest bidders are identified by the system. The

result of e-Auction shall be available on the E-auction web site.

User(s) can view the results using their login credentials.

The final results of the E-Auction are binding on all bidders and any

request for cancellation received after the conclusion of an auction

session shall not be entertained.

Fig.3.3 View RFQ List available post login to the bidders

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Fig.3.4 RFQ Details and Bidding screen available post login to bidder

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4. Post Trade activities

On being a successful bidder to auction, bidders have to transfer

margin amount defined by the seller during RFQ initiation.

Bidders will have to transfer the amount through payment gateway

provided by NSEL.

The successful bidders will be required to pay rest of the sale

proceeds (total sales value less margin amount) amount within the

specified days from confirmation of the deal. Here the total trade

value = [(Traded Qty* Traded value) + any charges defined] the

earnest money /margin amount shall be adjusted against the last

installment receivable from them. On receipt of the earnest money

and the sales proceedings from the bidders, the Exchange shall

transfer the amount to the seller after generation of delivery order by

him.

In case of non-transfer of pending settlement amount by the bidder

within the specified settlement date, the margin amount will be

forfeited. In such case, the deal will be cancelled and the forfeited

amount will be transferred to the seller.

The transfer of margin and sales proceeds to the seller by the

Exchange will be through payment gateway.

Seller will be able to see in the system details of remittance of funds

by the buyers. Based on this, he is required to generate Delivery Order

on the system.

The buyer can download such Delivery Order from the system

himself. He is required to produce such Delivery Order alongwith his

proof of identity before the warehouse manager for the purpose of

lifting delivery.

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After lifting of commodities, buyer needs to enter confirmation about

receipt of commodity in the system.

Once the confirmation is provided by the buyer, the Exchange would

then transfer the complete amount to sellers account.

Fig .4.0 Trade List available to customer /seller post login

Fig.4.1 obligation List available to customer /Seller post login

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5. Reports related to Trades & Post Trade settlements:

Various reports are available in the module to both bidders as well as sellers.

Such as

Trade report:- This report contains information about successful

bids to an RFQ. This gives an indication of the potential bidder(s) on

completion of the auction.

Obligation report:- This contains information about the bidder(s)

whose margin payment has been successfully transferred.

Settlement report:- This contains information about the trades

which have been successfully settled

Bank transaction:- This contains information to the user about the

bank transactions carried out by him

Fig 5.0 Bank reconciliation report

6. Glossary

Term Definition

NWR NSEL Warehouse Receipts

RFQ Request For Quotes

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7. Activity Diagram

7.1 User Registration

User

Login / Registration / Change Password

Home Page

Register

Terms and Conditions

Login / Register

Agree / Disagree

Disagree

Registration Details

Welcome Page

Successful

Agree

Pass

Fail

Login

Login / Forget Pwd

UserId / Pwd / Role User ID

Change Pwd

Login

PAN Details

Fail

Successful

Pass

Successful

Pass / Mail Notification

Fail

New / Confirm Pwd

Fail

Admin Approved

Pass

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7.2 RFQ Initiator Activity by the seller

RFQ Initiator

View Demands

View list of NWR and

their status

Initiate RFQ

View NWR

Details

View Past Trades and

Ledger

View Bids on RFQ

Initiate Bid

Negotiation

7.3 Bidder Activity

Bidder

Place Demand Request

View and Filter List of Available RFQ

Place Bids

View RFQ Details

View Past Trades and Ledger

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8. List of banks connected with Payment Gateway:

Sl No Bank Name

1. Jammu and Kashmir Bank

2. Corporation Bank

3. Karnataka Bank

4. Union Bank

5. South Indian Bank

6. DCB Bank

7. Central Bank of India

8. Canara Bank NetBanking

9. ICICI Bank

10. Yes Bank

11. HDFC Bank

12. IDBI Bank

13. Lakshmi Vilas Bank

14. Bank of India

15. Kotak Mahindra Bank

16. State Bank of India

17. Indusind Bank

18. State Bank of Hyderabad

19. Karur Vysya Bank

20. Fedral Bank

21. City Union Bank

22. State Bank of Mysore

23. State Bank of Bikaner and jaipur

24. Deutsche Bank

25. State Bank of Travancore

26. Indian Bank

27. Indian Overseas Bank

28. Catholic Syrian Bank

29. Bank of Maharashtra

30. Axis Bank