nsel e-series presentation

1: NSEL – Introduction.

2: E-Series an investment avenue.

www.nationalspotexchange.com

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


Features of NSEL

Demutualised Exchange

Transparency in operations and decision making

Dissemination of real time price and trade information

Delivery based Market

Settlement Guarantee & Counter Party Risk

Membership ( TCM, ITCM, PCM, TM )

Capital Adequacy Norms for the Members

Efficient clearing and settlement system

Single day contracts.

Open position at EOD must be settled on settlement day.

NSEL: A snapsot


Total number of Members: 567

Total Trading Terminals across the country: 2500

Number of States currently operational: 12

Total number of Commodities being traded: 37

Total Number of commodities contract: 346

Total turn over till Mar 2011 : Rs. 84,825 cr. (E-Series: 66,624 cr)

FY-08-09 :763 cr. FY-09-10 :3404 cr (+350%) FY-10-11 :80657 cr (2268%)

At present, a number of Government companies are using our facilities. MMTC,

PEC,FCI, CCI and NAFED are our members

Product offering by NSEL

Agricultural Non Agricultural E-SeriesCereals: Paddy, Wheat, Bajra Bullion: Gold & Silver

( Bars & Coins)e- Gold

Pulses: Bengal Gram, Green Gram, Black Gram, Pigeon Peas, Yellow Peas etc. e-Silver

Edible Oils & Oilseeds: Soybean, Castor Seed, Mustard Seed etc.

Steel: Ingots and Billets

e-Copper

e-Zinc ; e-LeadCotton, Sugar and Black Pepper

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

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 SpecificationContract Specification


Trading related informationContracts Symbol

Trading unit- 1kg/100 gram

Tick size – 10 p/ 1 Rs.

Trading–Session. 10 am 11:30pm

Price quote –per 10 gram

Daily price limits- 5%

Initial margin-5%

Maximum order size-10 kg

Delivery related information

Delivery unit- 1kg/100 gram

Delivery center(s)- Mumbai/Ahmd

Quality Specifications

Grades & Standards -995/999

Tolerance limit for quality / quantity - discount/premium

Settlement detailsFunds/delivery( pay-in & Pay-out schedule-T+1,T+2)

( Eg.GOLDMUM2 / GOLDMUM0 / WHEATDEL5, E-Gold ,E-Silver)


Product Categories

Based on participants :

Farmer’s contract: Only farmer is seller, smaller trading unit, price cess unpaid

Traders' contract: Trades are the seller, large units & Cess paid commodity.

E-Series contracts : Retail/Corporate Investors .Based on type of Market :

Normal : Price-Time priority. Intraday is permitted. Settlement on closing price

Trade to Trade : Price-Time priority. Intraday is not permitted

Auction Contract: Trade matching at the End of session.(Forward & Reverse Auction)Settlement Segment :

Physical Segment : settlement of Delivery takes place in physical form

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

Operation Flow (physical segment)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.


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

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.

Gold, Silver, Copper and Zinc are available for trading with all features and

convenience of equity market scrip and operation.

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

Designated vault for Bullion: Brinks Arya

Registrar and Transfer Agent (RTA): Karvy

NSEL- the issuer .

Associates Depositories - 85 D.P and over 500 members are associated.

E-series products function just like cash segment in equities.

Retail investors, corporate can trade and invest in the instrument.

Only Authorized Dealers appointed by NSEL are eligible to demat and take care of all

compliance.

Used as additional margin at NSEL

Eligible for off market transfer and pledge

Physical conversion of accumulated demat units at designated centres.

No storage / WR charges for storing of E-Series ICINs

E-series Contract Information

Duration of contract : Single day.

Trading timing: 10:00 AM to 11:30 PM (Mondays to Fridays)

Intra day is allowed, but net position at end of day must result into delivery on T + 2.

Delivery margin is levied at member level on net open position till pay-in day.

Settlement cycle: T + 2 ( from Monday to Friday . Pay-in: 1pm & Pay-out : 5:30pm)

Settlement at closing price (Trade day ). The difference (closing price-trade price)

settled on T+1 day.

Settlement in demat form ( ICINs) only.

Settlement of demat ICIN through the CM-Pool account of members as done in stock

exchanges.

Settlement number disclosed thru DPM / circular/ TWS


Commodity e-gold e-silver e-coppersymbol 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


Commodity e-gold e-silver e-copperMarket code (NSDL) Normal –AA ,Auction : MM do do

Settlement id ( CDSL) Normal: 26 51 200121Auction : 26 52 200121

do do

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, Ahmd, Jaipur, Hyd , Bangalore

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

Delhi

Taxes (in case of physical delivery)

VAT & Octri VAT & Octri VAT & Octri

Circular ref NSEL/2010/041 NSEL/2010/063 NSEL/2010/177

How to participate

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

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

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

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.

On Sale-Clients transfer demat units through DIS slip to member’s pool account in

the respective settlement number.

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

No SEBI –Pool penalty (cir- 2010/061)

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

How to participate

Appointment of sub brokers ( cir- 2008 /030 )

Appointment of Authorized Participant ( cir-2010/152)

Physical conversion of E-Series units ( product circulars)

Inter DP swapping ( 2010 /086 )

E-Series as margin ( 2010/187 )

Settlement calendar NSDL /CDSL

No storage charges ( 2010 /113)

Opportunities and Road ahead

20 commodities under e-series during calendar year 2011, creating a vibrant cash

segment in commodities

Platinum, steel, nickel, aluminum, etc.

Some non perishable agri-commodities : Black pepper, castor, etc.

ODIN, ODIN diet, net.net., etc. ( all products of FTIL) available free of cost for NSEL

members.

SIP ( systematic investment plan): software available free of cost

E trader: software available free of cost

Fungibility of e-gold with jewellary in pipeline

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

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

E-Series Return since launch* (%) Annualized return (%)E-Gold 30 27.45e-Silver 139.41 139.80e-Copper 15.59 36.72

Data as on 19th April, 2011

NSEL E-GOLD* GOLDBEES ETF SBIGETS ETF

Mar 17, 2010 (Launch Date*) (`/Unit) 1700.80 1648.40 1680.00Apr 07, 2011 (Previous Close) (`/Unit) 2211.10 2113.60 2156.25Profit in `/Unit 510.30 465.20 476.25Return % 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

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.

Sophisticated pricing for the grassroots farmer

E-Series products are ethical instruments confirmed to thestandards of Islamic finance law & Shariah Compliance

National Spot Exchange Limited 102 A, Landmark, Suren Road, Chakala, Andheri (East), Mumbai – 400093. Tel: +91-22-67619900

Fax: +91-22-67619931 E-mail: [email protected]

Thank You

nsel e-series presentation

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