MCX spot arm to go live in August

Financial Technologies-promoted National Spot Exchange (NSEL) is all set to go live by the end of next month with spot trading in a number of agriculture and non-agricultural commodities.

Initially, NSEL would facilitate nationwide trade for goods delivery in Maharashtra, Gujarat and Karnataka, for which the exchange has already obtained licences.

BRIGHT SPOT

NSEL will begin with nationwide trade for delivery of goods in Maharashtra, Gujarat and Karnataka

NSEL started mock trading last Monday and has added 285 members so far

The exchange will begin trading in commodities such as maize, cardamom, cotton, castorseed, jeera, pepper, rubber, tur and urad, and non-agri commodities such as gold and silver

 

Additionally, the exchange will facilitate delivery in the states of Kerala and Bihar, where the Agriculture Produce Marketing Committee Act does not exist.

The exchange has also entered into a memorandum of understanding with the governments of Rajasthan and Madhya Pradesh to initiate delivery.

India’s first online spot trading platform started mock trading on a pan-India basis last Monday and has added 285 members so far.

The exchange will begin trading in commodities such as maize, cardamom, cotton, castorseed, jeera, pepper, rubber, tur and urad.

Farmers will have the privilege of trading directly, with an additional cess, over and above the quoted prices, as they will be carrying goods without paying mandi tax.

Traders will not require any extra payment as they will be trading after paying the mandi tax. The delivery path of agri-commodities will depend on the time consumed for quality check and proximity to warehouses.

For online spot trading in non-agri commodities such as gold and silver, the delivery will be executed through G4-Securitas and other agencies the MCX has tied up with.

Announcing the decision, Anjani Sinha, MD and CEO, said, “Neither are we in the process of dismantling the existing spot trading system nor are we driving traders or organised retailers out. Our online trade is for the benefit of farmers who can carry their goods to the local traders for delivery to our warehouses.”