National Spot Exchange Ltd (NSEL), promoted jointly by NAFED and Financial Technologies, which launched its membership drive on June 1, 2008, received an overwhelming response in its membership drive. More than 500 traders and corporates from across the country have evinced their interest in its membership and 155 completed application forms have already been submitted for enrolment, as its trading cum clearing member within a fortnight of its launch, according to a release issued by the exchange. Membership of National Spot Exchange, the first pan-India Electronic Spot Exchange of India, is available up to June 30, 2008.
The admission fee for trading cum clearing membership is Rs 5 lakh, which is negligible in view of the huge opportunity it offers to all segments - farmers, traders, corporates, processors, exporters, retail chain stores, arbitrageurs, jobbers, and end users. Commodity traders and corporates have welcomed this innovative project, which is also the promoter of MCX, the largest commodity exchange in the country. They believe that National Spot Exchange has come at a right time for the right purpose and it will bring out long pending reforms in the physical market of commodities by creating a transparent "Common India Market".
"NSEL will create a linkage between today's futures market and spot market by launching a large number of spot delivery contracts. The net impact would be that the futures market would become more structured and can move towards compulsory delivery contracts in all commodities gradually. On the other hand, farmers would be able to derive advantage of the futures market by selling in localised spot contracts, which will have strong linkage to the futures contract," Anjani Sinha, MD & CEO, National Spot Exchange, said, in a release.