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| What is NSEL? |
| National Spot Exchange Ltd. (NSEL) is a national level institutionalized, electronic, transparent spot exchange which is
poised to transform the rural economy. It is a state-of the-art unique electronic market place providing a common
trading platform to various participants like the farmers, traders, processors, exporters, importers, arbitrageurs,
investors and the general masses. These participants can buy, sell, trade, lift delivery or deliver the commodities listed
on it. |
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| Which commodities are traded on NSEL? |
Although many Agri and Metals contracts having large lot size are listed on NSEL, these would be more appropriate for
those who are actually MANDI players.
The E contract series which are of small lot size suitable for investment purpose and hence are more popular are: E -
GOLD, E- SILVER, E - COPPER, E - ZINC, & E - LEAD.
Lot sizes are small and hence convenient for even small investors. |
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| How it is different from other commodity exchanges like MCX & NCDEX? |
| MCX & NCDEX primarily offer a Derivatives market where futures contracts are traded. As against this, NSEIL is basically
for SPOT market activities. It's a Mandi in electronic form where prices are on actual spot basis. For Investors, the major
benefit of this membership is that now clients will be able to also invest in Silver in Demat form and that too in small
quantities. This is ideal for SIP form of investing in Bullion. Now even taking a long term view on Bullions without the
hassles of Mark to Market, Expiry, Rollover etc. is possible by buying and owning the units of Commodities in your
own Demat A/C. Amongst the other popular E-Series commodities are Lead, Zinc and Copper. ON NSEL major
volumes are in these E contracts rather than the larger Agri and Non –Agri contracts. |
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| Do I need to register separately as a client for NSEL? |
| Yes, Separate AOF will have to be filled up by clients for NSEL Trading and Commodity DP Account. |
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| Is Intraday trading allowed or do I have to TAKE / GIVE delivery once I transact? |
| Just like in equities, the E – contract Series can be bought or sold for delivery or even traded on an intraday basis. All End
of Day outstanding positions will result in compulsory delivery and any delivery pay-in obligation not fulfilled will go in
Auction process. |
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| Which commodity contracts are the most traded ones? |
| The E contract series. These are of small lot size suitable for investment purpose and hence are more popular & traded.
These are: E -GOLD, E -SILVER, E -COPPER, E -ZINC, & E- LEAD. |
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| If I want physical delivery of GOLD / SILVER, is it possible to get the same? |
Yes, Physical delivery of GOLD / SILVER & other agro commodities are possible. The Demat Stock can be Remated or
converted through a separate delivery process which will involve some nominal charges to be paid to the DP. |
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| Will my equity Demat account come in use for NSEL Delivery? |
| No, Equity DP A/c will not do. Separate commodity Demat account needs to be opened. |
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| What are the trading hours of NSEL? |
Trading in the major Commodities takes place on all days of the week (except Sundays and holidays declared by the
Exchange).
E – Contract series products are traded on Monday to Friday between 10:00 to 23:30hrs. |
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| How do I put in a trade? |
| You can execute your trade through our Head office or any of our branches or Channel Partners over the phone or the
same can be integrated with the existing commodity trading platform (ODIN Diet) if you are already an Internet based
trading client in Commodities. |
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| What are the pay-in & payout schedule for NSEL? |
| It is same as Equities delivery trade settlements, the pay – in & pay – out will happen on T+ 2 basis. |
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| Is the Demat A/c tariff same as in equities? |
| No, separate commodity DP account tariff would be applicable which is intimated separately. |
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| Are there any additional charges related to delivery other than the statutory charges & brokerage, for Gold /
Silver. For eg., making charges / VAT etc? |
| For delivery in Demat form each transaction would, besides brokerage, attract Exchange transaction charges & stamp
duty. Additional nominal charges such as VAT, making charges, Delivery charges and Octroi would be levied for the
delivery in Remat form (Physical). |
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| Is this exchange governed by SEBI OR FMC? |
| NSEL is governed by the Forward Market Commission (FMC) and not by SEBI. |
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| What is the main advantage to an investor in NSEL? |
| Investment in GOLD was always possible through ETFs in Equity markets. The major benefit of this membership is that
now investors will be able to also invest in Silver in Demat form and that too in small quantities. This is ideal for SIP form
of investing in Bullion & client will have longer trading hours up to 11.30 p.m. Secondly, as against futures Market of
MCX & NCDEX, we get spot market or Mandi prices on NSEL. |
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| Can I Demat my physical GOLD/SILVER lying with me? |
| No, you cannot convert the physical GOLD / SILVER lying with you in Demat form. Nor will it be possible for Remated
GOLD/SILVER to be Demated again as physical delivery once taken by a client cannot be demated or delivered back to
the exchange. |
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| Will margin on NSEL apply just like it is in Equities? |
| Yes. Margin requirements for exposure are more or less similar to the Equities market |
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| What are the basic contracts specifications of the most popular products of NSEL? |
| The basic contract available for the most popular E –contract series are as under: |
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E -GOLD: 1 Gram |
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E -SILVER: 100 Grams |
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E –COPPER: 1 KG |
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E –ZINC: 1 KG |
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E –LEAD: 1 KG |
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| Further details for each of the above Commodity is given separately. |
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