Electronic Spot Exchange
Let’s learn about electronic spot exchange. NSEL is the national –level, institutionalized, electronic, transparent spot trading platform for commodities. It is also known as National Spot Exchange Limited. It is a structured marketplace, set-up to transform the commodity market by way of reducing the cost of intermediation, and thereby improving marketing efficiency. Its state-of-the-art technology facilitates risk-free and hassle-free purchase and sale of various commodities. NSEL provides customized solutions to farmers, traders, processors, exporters, importers, arbitrageurs, investors, and other stakeholders pertaining to commodity procurement, storage, marketing, warehouse receipt financing, etc. This market segment functions like the equity segment in the main stock exchanges. Alternatively, this can be considered as guaranteed direct marketing by sellers of the commodities. Spot Exchanges leverage on the latest technology available in the stock exchange framework for the trading of goods. This is an innovative Indian experiment in the trading of goods and is distinct from what is commonly known as “commodity exchanges” which trade in futures contracts in commodities.
NSEL commenced “Live” trading on October 15, 2008. At present, NSEL is operational in 16 States in India, providing delivery-based spot trading in 52 commodities.
It include the followings:
- Need for electronic Spot exchange
- NCDEX Spot Exchange Ltd (NSPOT)
- National Spot Exchange Ltd (NSEL)
- Constitution
- Trading
- Membership
- Advantages
