Wednesday, 12 Dec 2018

NSEL to Launch e-Platinum in e-Series Basket

201304Aug

E-Series products of National Spot Exchange(NSEL) have enjoyed considerable popularity in recent years, as they provide a convenient and safe way of investing in the different commodities like gold, silver, copper, Zinc, Lead and Nickel in demat form. One market that appears to have been underserved is the platinum market for the investors. So NSEL has launch e-Platinum contract from 17th April, 2012 in precious metals category which will enable investors to add platinum in their portfolio.

The platinum market is not large, due to the low supply of this precious metal. Very little platinum is produced every year, and supply does not satisfy demand, that makes a classic situation for a commodity that is set to surge. Much of the demand for platinum comes from the jewelry market, where fashion trends and economic factors have increased interest in the metal. Investment demand for platinum rose right along with other reasons to purchase. It has seen that since 2009 the price of Platinum has appreciated about 45% and in the last quarter the price of platinum has jumped about 15%.

It is believed that the e-Platinum owns a great deal to invest in physical platinum and are designed to emulate the price of platinum. The investors have the opportunity to buy Platinum in the multiples of 1 gram electronically through the Exchange members. The electronically bought units of platinum are delivered in the demat account and physical platinum is securely stored in Exchange designated vaults. The Exchange has made provision of physical delivery of Platinum in various denominations in the form of granules/shots imported from London platinum and palladium market (LPPM) approved suppliers. To start with, the physical delivery can be available at Delhi, Mumbai, Jaipur and Hyderabad.

The contract in e- Platinum is available for trading on NSEL platform from Monday to Friday from 10.00 am to 11.30 pm. The trading unit for e- Platinum is 1 unit, which is equivalent to 1 gram of Platinum with the tick size of Rs. 1.00/ gram. The clearing and settlement pay-in and pay-out are based on T+2 cycles and settled completely in demat form. In e- Platinum contract, intraday trading is allowed but all open positions (buy and Sell trades) must result into compulsory delivery in demat form on the designated delivery day.

The salient features:

  1. To participate, the investors have to open trading account (with any of the NSEL member) and commodity demats account (with any of the Exchange Empanelled DP).
  2. Convenient and secure online buying and selling on Exchange platform.
  3. No need for the investor to hold physical platinum as it is convenient way to invest in platinum is by buying platinum in demat form (e-Platinum).
  4. Provision for invest in smaller denomination (1 gram platinum equals to 1 unit of e- Platinum) in demat just like the shares.
  5. No worry about the daily MTM pay in/Payout and roll over issues.
  6. Pricing of e-Platinum is based on London platinum price and INR-USD exchange rate.

 

The price of platinum is expected to rise in the years to come, as the demand for platinum jewelry increases and the automobile industry regains its strength. All this means that this is a perfect time to invest in platinum, and the easiest way to do it is by buying e-platinum.

For any clarifications please contact I B Gandhi, +9198795 78395 of mail us on mega@megafina.in

Current Blog