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National Spot Exchange
National Spot Exchange
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Jobbing
Speculation Cash Future Arbitrage No investment product available for retail and long term investors like equity( Free from
Compulsory delivery based contracts Our group has revolutionized Indian Bullion market by providing a world class hedging tool to the Bullion Industry.
The next step is to revolutionize spot market of gold and silver by making it structured, institutionalized, transparent and risk free
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E Series Products
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Product Ecosystem
Designated vault for Bullion: Brinks Arya Registrar and Transfer Agent (RTA): Karvy
Authorized Dealers appointed by NSEL take care of all such compliance without any charge
At the time of dematerialization and rematerialization of units, Authorized dealer comply with all legal requirements and give delivery of gold bars/ coins with his sale invoice in the case of rematerialization.
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Product Details
Duration of contract : Single day. Settlement cycle: T + 2 Trading session : Mondays through Fridays Trading timing: 10:00 AM to 11:30 PM. Commodity pay in, commodity pay out, Funds pay in, Funds Pay out : T + 2 Settlement of demat Gold/Silver/Copper ICIN through the CM-Pool account of members as done in stock exchanges.
Example. If an investor is having Rs. 15000, who is bullish about copper buys 1 lot of copper( 1 MT) on MCX, but if the price crashes, his capital is wiped out.
Now, he will be able to buy 50 Kg of copper and hold in demat account. If the
price goes down, he holds. If the price goes up, he books his profit.
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Unique beneficiary accounts would be around 1 crore No. of persons holding Gold / Silver in India : At least 30 crores Potential of commodity demat accounts within 3 years: At least 5 crores
Cont
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Geographical reach: Equity market penetration confined to 500 towns and cities. Bullion products penetration: 6 lac villages across the country. Even in villages, where DPs and banks are not available, Gold and silver is a part of house hold savings portfolio. Bullion Products do not need marketing efforts, you make it available and investors will buy.
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A huge market is in making, be a part of it and participate in this growth story. Scope of business as DP: You can open 1 lac beneficiary accounts over a period of next 1 year
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1. Commodities is emerging as another asset class 2. Commodities price is related to economic growth and hence offer return 3. Hedge against inflation 4. Improving stability and predictability of returns 5. Diversification of portfolio 6. Bullion (Gold& Silver): Historically proven as hedge against inflation and provide stable return 7. Base Metals: Long term bull cycle backed by industrial and economic growth
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Asset Class
Return Potential
Liquidity
Diversification Benefit
Risk Involved
Holding Cost
Medium
Very High Various Volatile Medium
High
Low Low High Very Low
Very High
Moderate Various High High
Low
Very High Various High High
Low
High High Low High
Source: www.benchmarkfunds.com
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Gold improves the stability and predictability of portfolio returns. It is not correlated with other assets because the gold price is not necessarily driven by the same factors that drive the performance of other assets. Adding gold to a portfolio introduces an entirely different class of asset. Gold is unusual because it is both a commodity and a monetary asset.
Gold is one of the few financial assets that is not linked to a liability. It can
provide 'insurance' against extreme movements on the value of traditional asset classes.
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Why should the general mass prefer demat Gold instead of physical gold
Its like comparing keeping cash at home versus maintaining a savings bank account. Given the comfort of easy liquidity, reach, safety, low cost, transparent
pricing and seamless entry and exit, the mass will prefer holding demat gold
instead of gold coin or jewellary at home. DPs and broking houses can expand to thousands of centers, where stock market has still not penetrated
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Cont..
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10 AM - 11.30 PM
Taken care of by Taken care of by Fund house Exchange At Transparent At Transparent secondary market secondary market prices prices
Resale
Delivery Center
Low-As physical Low-As movement & physical transfer involved movement & transfer involved Single Single
Single
Multiple
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How to participate
Membership/ client registration Opening of CM Pool Account by NSEL members. Clients are entitled to sell and deliver the demat commodity by
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Membership criteria
Admission Fee: Rs 7.5 lakh Non refundable, but membership transferable after 3 years
Security deposit: Rs 7.5 lakh Refundable Annual Subscription: Rs. 25,000
Performance of E-Series
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Launch Date:* E-gold: 17th March, 2010 ; E-Silver: 21st April, 2010
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ETF Performance A Comparison of Benchmark MCX Gold Price vs. Gold Bees ETFs price
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Contact Details
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Thank You
National Spot Exchange Limited 102 A, Landmark, Suren Road, Chakala, Andheri (East), Mumbai - 400093. Tel: +91-22-67619900 Fax: +91-22-67619931 E-mail: info@nationalspotexchange.com
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