Mumbai: National Spot Exchange Ltd or NSEL, on Tuesday, reduced the delivery, payment and settlement period of all contracts traded on the spot exchange to less than 11 days, according to a press release.
The spot exchange said that all trades executed until 22 July will be settled as per their scheduled delivery and settlement day, but starting 23 July, there will be no contract available for trading with delivery and settlement beyond 11 days.
Further, NSEL has reduced the cost of transactions in respect of all contacts by 80%. The cumulative cost of transaction, delivery and warehouse receipt transfer has been slashed from Rs100 to Rs20 per Rs1 lakh of turnover.
Additionally, the exchange has decided to convert all the existing contract on “trade for trade basis”, which means that every trade must result in delivery. In other words, intraday trading won’t be allowed any more in any of the contracts.