Government may ban e-series contracts at NSEL

India Infoline News Service | Mumbai |

The government is likely to bar trade in existing 'e-series' contract and fresh forward one day contracts without prior approval of the authorities

The Ministry of Consumer Affairs is likely to ban trading in e-series contracts on the National Spot Exchange Ltd (NSEL). A notification in this regard is expected to be issued soon, according to a media report.

The government is likely to bar trade in existing 'e-series' contract and fresh forward one day contracts without prior approval of the authorities, the report added.

Two years back, NSEL had launched 'E-Series' products, through which investors could buy commodities and hold them in a demat form. NSEL offers e-series contracts in gold, silver, copper, zinc, lead, nickel and platinum.

E-Series products track the respective physical commodity prices. Retail investors can invest in them in smaller denominations-like in systematic investment plans-on a daily, weekly or monthly basis.

The ban on e-series could hit NSEL's business further.

On July 31, the NSEL suspended trade in all contracts except 'e-series' following the government's direction not to launch new contracts because of violation of some rules.

NSEL on Monday said that it will submit its detailed settlement plan to the Forwards Market Commission (FMC) on August 14. NSEL has constituted an independent committee to advice and monitor the progress of financial closeout plan.

Jignesh Shah, chairman and group CEO, Financial Technologies said that it will take five months to settle all the open positions amounting to Rs. 55.99 billion.



 

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