“E-SERIES- An investment product of National Spot Exchange Limited

(NSEL) “

Prepared By : Shreya Gautam

& Deepak Meena M.B.A(F.S) 3rd Sem.

Summer Internship Project on:

Brief introduction of Arihant Capital Market ltd.

National Spot Exchange Limited (NSEL)

National Spot Exchange Ltd (NSEL) is a national level electronic, demutualised and transparent

commodity spot market.

NSEL is promoted by Financial Technologies India Ltd (FTIL) and National Agriculture Co-operative Marketing Federation of India ltd (NAFED).

NSEL commenced its live operations on15th  October 2008.

It provides online delivery based trading in various agri-commodities ,bullions and metals

across the country.

More than 33 commodities are traded on NSEL Platform having delivery locations spread

across 14 states.

Services offered by NSEL

1. Selling

2. Procurement

3. Warehousing

4. Investment

5. Arbitrage

E-SERIES

•For the first time in India, National Spot Exchange (NSEL) has introduced E-Series products in commodities.

•Retail investors can now trade and invest in commodities like they invest in equities.

•It enables investors to invest their funds into commodities in smaller denominations and hold it in demat form for sale/delivery in future.

•NSEL has made necessary arrangements with National Securities Depository Limited (NSDL), and Central Depository Services (India) Ltd. (CDSL) is the depository for holding commodity units in the electronic form.

Products of e-Series

1) e-Gold 2) e-Silver 3) e-Platinum 5) e-Lead6) e-Copper 7) e-Nickel 8) e-Zinc

Product Specification

Contract Symbol e-Gold, e-Silver, e-Copper , e-Zinc , e-Lead and e-Nickel

Trading Period Mondays – Fridays

Trading Session 10:00 AM to 11:30 PM

Trading unit 1 unit of e-Gold, equivalent to 1 gram of Gold ; 1unit of e-Silver, equivalent to 100 gm of Silver , 1unit of e-Copper, e-zinc, e-Lead and e-Nickel equivalent to 1KG.

Settlement Cycle T+2

Delivery Logic All open positions at the end of the day (buy and sell trades) Result into compulsory delivery in demat form on T+2 day

Cost of transaction Rs 10 per lakh of turnover

Cost of storage nil

e-Gold

NSEL launched its first product under the E-Series as E-Gold on Wednesday, the 17th March, 2010.

E-Gold is a new incarnation of gold, innovated by National Spot Exchange (NSEL), which enables investors

to invest their funds into gold in smaller denomination and hold it in demat form.

It is available on the pan India electronic trading platform set-up by National Spot Exchange, which can be

accessed through members of NSEL or their franchises.

It provided an unique opportunity to buy, accumulate, hold and liquidate "Electronic Gold (E-Gold)" .

Electronic Gold (E-Gold) can be converted into physical gold coin/ bar .

PARAMETERS

Purchase & Sale

NSEL e-GOLD

Dematerialised Form

GOLD ETF’s

Dematerialised Form

BANK(BARS/COINS)

Physical Form

JEWELLER

Physical Form

Pricing Linked to Indian Gold Prices

Linked to international gold prices

May differ from bank to bank

May differ from jeweller to jeweller

Annual Recurring Expenses(Storage,Insurance & AMC)

NIL 1-2.25% High High

Market Timing 10 AM – 11:30 PM 9 AM – 3:30 PM 10 AM – 5 PM 10 AM – 7 PM

Security of Asset Taken care of by Exchange

Taken care of by Fund House

Investor Responsible Investor Responsible

Resale At transparent secondary market prices

At transparent secondary market prices

May not be possible At deep discounts

Convenience of buying, storage and selling

High - Totally Demat High - Totally Demat Low - As physical movement and transfer involved

Low - As physical movement and transfer involved

Comparison between investment in e-Gold and other sources of Gold investment

Area of Working

Online trading department

trading in equity Trading in currency Trading in e-GOLD (NSEL)

Marketing Department

Create awareness regarding NSEL e-Gold and made people invest in e-GOLD. Did survey regarding awareness of Currency derivatives among sub-brokers.

LEARNINGS FROM SUMMER TRAINING

•Learnt how to work in the corporate environment.

•How to manage and work with the people of different culture and background.

•Team work

•Coordination

•Learnt about online trading .

•Learnt about a new exchange NSEL and its product e-Series

CONCLUSION

We have learnt a lot from our training at Arihant capital market ltd. . We got a great exposure

regarding stock market and we got to learn about a new exchange i.e NATIONA L SPOT

EXCAHNGE LTD. and its product E-Series. Overall the training gave us practical knowledge.