Source: National Spot Exchange
National Spot Exchange Ltd (NSEL), India' first online spot trading platform, today commenced mock trading on pan India basis in agriculture commodities.
NSEL has received license to commence online trading from the Governments of Maharashtra, Karnataka and Gujarat. Besides, it has entered into MoU with the Governments of Rajasthan and Madhya Pradesh.The contracts are market oriented with minimum lot size as 1 quintal for wider participation from marginal farmers to sell their produce.Single Day contractArea specific delivery centersDelivery on T + 1 and T + 3 basisMultiple contracts to suit the requirement of buyers and sellers
As of now, more than 500 entities from across the country have evinced interest in membership of NSEL and 225 of them have already submitted their applications. The launch of NSEL will strengthen the supply chain and provide an efficient procurement mechanism to the corporates.
On the occasion, Mr. Anjani Sinha, MD & CEO NSEL said, "Mock trading is a replica of the systems and procedures used for live trading. Our aim is to ensure that all our members are ready to commence trading on day one and that our systems are robust, effective and efficient. The exchange is planning to launch Arecanut, Black Pepper, Castor seed, Coriander, Cumin seed, Cotton (long and medium) Gold, Rubber, Silver, Tur, Urad and a number of other commodities for trading."
NSEL is poised to go live by end of August 08. It envisions improving marketing efficiencies in the existing system by enhancing the supply chain management in agri business. It is a state-of the-art organized and structured electronic market place providing facilities for risk fee and hassle free procurement and disposal of farm produce. It provides on line pan India negotiation platform for the farmers, traders, processors, exporters, importers, arbitrageurs, investors and the general mass relating to agricultural marketing.
Mock trading is conducted by the exchange before commencing live operations to provide hands-on experience of online trading to its members and other participants. Mock trading is available to all approved members of NSEL. Mock trading will operate exactly as live trading, except there will be no financial obligation to be fulfilled for any trades. Mock trading serves both as a final test for all hardware, networking and system applications and also provides an avenue for members to gain complete familiarity with the systems and processes.
As of now, agri-commodities will be launched with production areas as delivery centers of Gujarat, Maharashtra, Karnataka, Kerala and Bihar, and non-agri commodities at different parts of the country as delivery centers. To help build a robust infrastructure and induce wider participation from the agri markets National Spot Exchange recently signed an MOU with Gujarat Agro-Industries Corporation to develop agri business in Gujarat. Gujarat Argo currently has a franchise network of 1200 active centers, which provide agricultural input services. These franchises will be connected to NSEL platform and will work as a conduit between farmers and NSEL.
Government of India, Department of Information Technology (DIT), has also decided to establish 100,000+ ICT-enabled Common Service Centres (CSC) in rural areas in the country on a Public Private Partnership (PPP) model wherein NSEL is an active and integral strategic partner. DIT has appointed IL&FS as the "National Level Service Agency" (NLSA) for project development, facilitation & coordination of the CSC Scheme. NSEL has signed strategic alliance with IL&FS for development of agri business and other allied services in India. NSEL will partner with the SCAs (Service Centre Agencies, who will establish & operate the CSCs) and other stakeholders to leverage the CSC network to make use of infrastructure and internet enabled network of accredited CSCs to promote, market and disseminate its services to more than 500,000 villages across the country.