Spot Market Reforms in Bullion & Way Forward

8/14/2019 Spot Market Reforms in Bullion & Way Forward

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www.nationalspotexchange.com

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 !

Documents

Spot Market Reforms in Bullion & Way Forward