The turnover of NSEL’s four e-Series products – viz. e-Gold, e-Silver, e-Copper and e-Zinc—during January 2011 exceeded the turnover recorded by these products last year. NSEL had launched e-Series products in 2010, starting with e-Gold in March, to meet the growing demand among retails investors to invest part of their savings in commodities. It added e-Silver in April, e-Copper in November and e-Zinc in January 2011.
Turnover of e-Series products increased from a mere Rs 198 Crore in September 2010 to a whopping Rs 10,680.7 Crore in 2011 till 25th Jan. Moreover, NSEL recorded the highest daily turnover of Rs 1,358.84 crore for its e-Series products on January 21, 2011 with e-Gold witnessing the highest turnover of Rs 256.6 Crore on January 25, 2011 and e-Silver seeing the highest turnover of Rs 1008.2 Crore on January 21, 2011.
NSEL’s e-Series had also ended 2010 with very attractive return on investment (RoI) and turnover figures. Last year, e–Series not only surpassed the returns of many other investment products but also witnessed a huge increase in turnover.
In 2010, while equities as a measure of NIFTY, gave returns of only 17.30%, in comparison e-Gold gave a return of more than 21% over a period of 10 months and e-Silver more than 62% in 9 months. The annualized return in case of e gold comes to 28.44 %, in case of e –silver comes to. 90.8 % and in case of e copper comes to 117.3 %. If we compare the performance of gold ETF and e-gold during the same period, it is observed that e gold has performed better that Gold ETF, the reason being that in case of Gold ETF, there is AMC cost, while in case of e gold, there is no AMC cost.
NSEL recorded an average increase of 200 % per month in its turnover during the last four months of 2010 and an average daily turnover of Rs 628.27 Crore in January 2011 in the e-Series products. The number of trades in e-Series also increased from around 25,000 in August 2010 to over 2.65 lakhs in January 2011 (till January 25th).
According to Mr. Anjani Sinha, MD & CEO, NSEL, “NSEL’s e-Series products are proving to be attractive investment option for investors, especially for small investors and HNIs, owing to their transparent pricing, seamless trading and zero holding costs. These products have also created a huge opportunity for stock brokers, DPs and agencies selling mutual funds or insurance products to expand their business by registering clients willing to invest in e-Series products and earn significant income from a unique series of products”.
Given the popularity and huge demand for e–Series, a large number of broking houses have been prompted to become members of National Spot Exchange. In order to give more brokerages a chance to become a part of this large market, NSEL has launched a membership drive till January 31, 2011, during which the exchange is offering an admission fee of Rs. 7.50 lakh for new members. NSEL has decided to revise its membership fee to Rs. 10 lakh for TCM (trading-cum-clearing) category after the membership drive ends on January 31, 2011.
