National Spot Exchange launches pulses contractsNovember 8th, 2008 - 8:07 pm ICT by IANS
Mumbai, Nov 8 (IANS) National Spot Exchange Ltd (NSEL), a national level electronic spot exchange, launched Saturday pulses contracts for spot trading based on compulsory delivery, a NSEL statement released here said.“These contracts have been developed to provide an efficient spot delivery platform,” Anjani Sinha, the managing director and chief executive officer of NSEL said at the launch function here Saturday.
“The launch of the pulses contract will be of significant benefit to importers, pulses millers, traders, physical market participants, corporates as well as government agencies which are engaged in import of pulses,” he added.
During the event, NSEL also signed a memorandum of understanding (MoU) with the Pulses Importers Association of India (PIA).
Chairman of the market regulator Forward Markets Commission B.C. Khatua inaugurated the new pulses contracts for spot trading.
Top officials from the central and Maharashtra state governments, state-owned companies and traders were present at the launch function.
The tie-up will benefit PIA members by providing online delivery based trading and a neutral and transparent platform for them to hedge their price risk against fluctuating prices, the statement said.
“We are happy to have this alliance with NSEL. I am pleased to note that NSEL has within a month launched four successful contracts,” the statement said quoting PIA President K.C. Bhartia.
“We are sure this alliance will play a vital role in improving the agriculture sector as well as benefit the industry participants on a wide scale,” he added.
Pulses contracts of T+7 have been made available for trading. That means compulsory delivery will have to be made seven days after a contract is made between a buyer and a seller. The minimum lot size is 10 metric tonnes.
The price of the contract will be made ex-warehouse, Mumbai inclusive of import duty, mandi cess and exclusive of sales tax/VAT.
NSEL is a national level online trading platform for trading in agricultural and non-agricultural commodities and currently offers spot trading in gold, gold mini, silver, cotton and now pulses contracts.
Agricultural commodities are traded between 10 am to 6 pm from Monday to Friday and from 10 am to 2:00 pm on Saturday. Non-agricultural commodities are available for trading from 10 am to 11.30 pm.
The NSEL’s promoters are Mumbai-based Financial Technologies India Ltd., a leading technology solutions provider for financial markets and the leading state-owned food procurement agency National Agricultural Cooperative Marketing Federation of India Ltd. (Nafed).
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