Mumbai: After e-Gold and e-Silver, the National Spot Exchange (NSEL) has launched e-Copper in its portfolio of e-Series products and plans to have 20 e-Series products by end-2011.
e-Series products provide an opportunity for small investors to invest in physical commodities in smaller denominations in demat form.
This segment is similar in functionality to the cash segment in equities. The Exchange plans to have 20 e-Series products by the end of 2011 to promote savings and investment in commodities, a press release issued here stated.
On the first day of its launch, e-Copper opened at Rs466.70 per kilogram. It hit an intra-day high of Rs466.90 and eventually closed at Rs452.10.
e-Copper recorded a total traded volume of 15,30,012 kilogram valued at Rs70.40-crore.
Investors can trade and invest in one trading unit of e-copper and multiples thereof. One unit of e-Copper is equivalent to one kilogram of copper. The clearing and settlement pay-in and pay-out are based on T+2 settlement cycles. Physical delivery of copper is possible in the form of Grade 1 Copper Cathode, the release said.
e-Series products are backed by physical delivery and are stored in the Exchange’s secured warehouses/vaults while trading takes place in demat form. An investor can trade in these investment products after opening a demat account with any of NSEL’s empanelled DPs.
NSEL’s managing director & CEO, Anjani Sinha, said, “there is a growing demand for a cash segment in commodities from retail investors. We have received an overwhelming response to e-Gold and e-Silver.”
“Launching e-Copper next was a natural choice as base metals are also treated as investment assets in most advanced nations and invariably form a part of retail and HNI portfolios. e-Series products have been especially designed for retail investors and portfolio managers who consider commodities as an asset class and want to diversify their investment,” Sinha added.
NSEL is today present in 14 states with 29 commodities, 85 delivery centres and 194 commodities contract.
It is a national-level institutionalised, electronic, transparent spot exchange, promoted by Financial Technologies India Limited and Nafed.