National Spot Exchange Ltd. (NSEL) has announced its plan to launch 15 commodities under E-Series for developing a full-fledged “cash” or “investment” segment in commodities. This is happening for the first time in the history of the commodity market in India, according to an NSEL release.
Commodity exchanges are generally known for providing a hedge instrument for protection against price risks. But they do not provide an instrument for investment where retail investors can park their funds with a view to enjoying price appreciation. In order to cater to this need, the market has to develop and launch investment products in commodities. This will give birth to a niche segment of commodity market investors, who wish to diversify their portfolio by parking part of their surplus funds in commodities, the release said.
Under E-Series, NSEL had already launched “E- Gold” and “E- Silver”. Now, NSEL it is all set to launch contracts such as E-Copper and E-Zinc.
Commenting on the development, Anjani Sinha, MD & CEO, NSEL, said, “This has created a new business opportunity for stock brokers, who were otherwise worried about dwindling investors' volume in stock markets. Investors, who are worried about stock market volatility are also finding it more suitable to diversify a part of their portfolio into commodities through such investment products.”
National Spot Exchange Limited (NSEL) is jointly promoted by Financial Technologies India Limited (FTIL) and National Agricultural Co-operative Marketing Federation of India Limited (NAFED).