Spot Market Reforms in Bullion & Way Forward
Transcript of Spot Market Reforms in Bullion & Way Forward
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Spot Market Reforms InBullion & Way Forward
Mr. Anjani Sinha
MD & CEO, National Spot Exchange Ltd.,
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Our commitment to Indian
Bullion Industry
Our group has revolutionized Indian Bullion market by providing a world
class hedging tool to the Bullion Industry
Our next step is to revolutionize spot market of gold and silver by making
it structured, institutionalized, transparent and risk free
This is the power of Many to Many
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Offering of National Spot Exchange
Single day contract for trading and delivery
Separate contracts for each delivery center
Trading hours : 10.00 am to 11.30 pm
During the day, buying, selling, netting, squaring off and settlement is
possible
Outstanding position at end of the day must result into delivery
In case of non delivery by seller, NSEL will conduct auction at the cost of
the defaulting seller
In case of failure of buyer to make payment, NSEL will conduct auction
at the cost of the defaulting buyer
NSEL provides counter guarantee in respect of all trades
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Bullion Contracts
BULLION
GOLD SILVER
GOLD MINI
LOT SIZE-1 KG LOT SIZE-100 GRAMS LOT SIZE-30 KG
GOLD REGULAR SILVER REGULAR
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Contracts to be launched
Separate contracts for :
Ahmedabad delivery
Mumbai delivery
Delhi delivery
Kolkata delivery
Chennai delivery
Bangalore delivery
Hyderabad delivery
And many more centers, depending upon need of the market
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Constituents of Bullion market
Banks
Importing Agencies
Bullion dealers
Jewellery manufacturers
Mutual Fund (Gold-ETF)
Traders/Brokers
Arbitrageurs
Retail Investors
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Facilities for banks and
nominated agencies Since this is not a futures contract, banks can directly become members
of NSEL, else they can participate as constituents
Banks can sell bullion at multiple locations electronically in risk freeenvironment with payment guarantee provided by NSEL
They can integrate suppliers quote plus margin forming orders to be
submitted on NSEL
Located at one place, they can sell bullion at various locations across
the country in risk free environment without any capital investment in
setting up offices
Freedom from credit risk and counter party defaults in these volatile
markets
Banks must prepare themselves to fight against intra-day and overnight
volatility leading to customers defaults by using NSEL secured platform
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Facilities for Bullion dealers
Get a readily available market to sell gold and silver
Expansion of trading and delivery business at various locations across
the country using our platform
Take membership of NSEL and provide client id to your customers.
Customers can place orders in NSEL terminal any time upto 11.30 pm
Instead of creating your own B2B portal, use the structured platformcreated by NSEL
Advantages:
No capital investment
Safe and secure mechanism
Increase size of business
Increase area of operation without investment
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Facilities for Jewellery merchants
Power to quote your own buying price
Ease of quoting price at any point of time during your business hours
Ease of buying even 1 Kg or 100 grams of gold at parity price
Getting the most competitive quote on a single platform in your
computer without making telephone calls
In times of parity as well as disparity, our prices will be nearer to
physical market price
A benchmark spot price available for making your business decisions to
buy or sell and also to fix your own price in your shop
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Facilities for Traders / Brokers
Potential for launching a full fledged Broking business in bullion market
Developing clientele and earning handsome brokerage
Ease of trading seamlessly at least cost
Book profit based on intra-day trading
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Reforms in Indian Bullion Industry and way
forward
A national level transparent spot price discovery platform
Indians participating in price discovery
Paradigm shift from
Price taker--- to Price Watcher ---to Price maker
Structured Linkage between International Spot, International Futures,
Domestic Spot and Domestic Futures with markets functioning as
shock absorbers
Structured platform for canalizing savings into investment in Bullion
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National Spot Exchange Platform
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Delivery in National Spot Exchange
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National Spot Exchange Limited
1st Floor, Landmark A Wing,
Suren Road, Chakala, Andheri (East)Mumbai - 400093.
Tel: +91-22-67619900 Fax: +91-22-67619931E-mail: [email protected]
Thank You !