NSEL

History
National Spot Exchange is a national level institutionalized, electronic, transparent spot exchange, which is poised to transform the rural economy. It is a state-of theart unique electronic market place providing customized solutions to various problems faced by the farmers, traders, processors, exporters, importers, arbitrageurs, investors and the general mass. NSEL is recognized by Ministry of Consumer Affairs, Food & Public Distribution, and Government of India. NSEL commenced its live operations on15th October 2008. It has created efficient spot delivery platform, helping the sellers/producers to sell commodities directly to the end buyers comprises of processors/ exporters. Currently, NSEL holds a market share of over 98% of the Indian electronic commodity Spot market, and has more than 495 registered members operating through over 3000 trader work stations, across India.

Types of participants in NSEL The participants on the national Spot Exchanges will be the actual buyers and sellers who are interested in taking delivery and making delivery of the commodity. In other words, manufacturers, traders, farmers, and exporters are all participating in this market

Last 3 years turn over

Asset Name Produ ct Name EGOLD EGOLD EGOLD Turnov er (Rs. In Cr) 2612.9 5 46253. 69 17841. 57

Year

2010 GOLD 2011 GOLD 2012 GOLD

Trade Volume 12995450 GRAMS 18863353 GRAMS 62347948 GRAMS

Eligibility criteria for investment:-

Difference between Gold ETFs & nsel e-Gold.

Investors can invest in Gold through ETFs as well through e-gold of national spot exchange. There are some minor differences in ETF and e-gold. 1. Fund managers track Gold prices through Net Asset Value (NAV).NAV of Gold ETF is net of liabilities. So NAV and returns of different ETFs are different. While in NSEL e-gold investors directly tracks gold prices. 2. NAV of ETFs is inclusive of custodian charges. While NSEL do not charge any holding charges.

3. In e-gold, investors are directly holding the gold units, while in Gold ETFs gold is actually owned by mutual fund AMCs. 4. Physical delivery in small denominations is possible in e-gold. While in gold ETFs physical delivery depends on sole discretion of ETFs. ETFs may offer delivery for investors holding Gold of higher amount. 5. We can invest in gold ETFs only up to 3:30 PM IST as market get closed. While spot market is open till midnight and we can invest in e-gold series till 11:30 PM.Suppose if gold ETF closed with NAV of 2300 (Time: 3:30 pm) and get closed at e-gold at 2330(At 11:30 pm).Then there is a difference of Rs.30 per gram in both the prices. Gold ETF will try to cover up this difference on opening itself. Investors will not get opportunity to get the price in-between. 6.In both cases, buy-sell intraday/delivery brokerages are payable which are in general in the range of 0.3 to 1%.