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FTIL promoted NSEL suspends trading of contracts other than e-Series contracts

01 Aug 2013 Evaluate

Financial Technologies’ (FTIL) promoted - National Spot Exchange (NSEL) has suspended trading of contracts, other than e-Series contracts till further notice. It has also decided to merge the delivery and settlement of all pending contracts and deferred the same for a period of 15 days. Consequently, the positions outstanding in the contracts will be settled by way of delivery and payment after expiry of 15 days. Exchange shall announce a revised settlement calendar and contracts due for settlement after this 15 days period.

Pursuant to the directions issued by the Department of Consumer Affairs, Government of India vide letter dated July 12, 2013, the Exchange had given an undertaking to the Government and simultaneously introduced T+10 with Trade to Trade settlement. This was done with a view to ensure orderly participation without creating any negative sentiments in the market.

The exchange will ensure that the process of settlement takes place in orderly manner and all participants get their rightful dues in accordance with Rules and Bylaws of the Exchange keeping in view the interest of the participants. Besides, e-Series contracts and other initiatives of the Exchange such as e-Auction, e-Procurement, MSP operations on behalf of the government agencies (NAFED and SFAC), etc. will continue uninterrupted.

National Spot Exchange (NSEL) is the national –level, institutionalized, electronic, transparent spot trading platform for commodities. NSEL provides customized solution to farmers, traders, processors, exporters, importers, arbitrageurs, investors and other stakeholders pertaining to commodity procurement, storage, marketing, warehouse receipt financing, etc. At present, NSEL is operational in 16 States in India, providing delivery-based spot trading in 52 commodities.

Financial Technologies (India) (FTIL) is the flagship company of the Financial Technology Group. FTIL is a global leader in creating and operating technology-centric, next generation financial markets that are transparent, efficient and liquid, across multi asset class, including equities, commodities, currencies, energy and bonds among others.

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