Govt bans e-series contracts at NSEL

The government on late Monday evening, banned National Spot Exchange Ltd (NSEL) from undertaking any transactions in the E-series contract reports CNBC-TV18's Sajeet Manghat. NSEL offers e-series contracts in gold, silver, copper, zinc, lead, nickel and platinum.

NSEL mess: Jignesh Shah assures trade settlement in 5 mnths
On July 31, the NSEL suspended trade in all contracts except 'e-series' following the government's direction not to launch new contracts because of violation of some rules.
NSEL is grappling with the problem of payment settlement of about Rs 5,600 crore after the suspension.
According to sources, the Consumer Affairs Ministry is likely to bar trade in existing 'e-series' contract and fresh forward one day contracts without prior approval of the authorities.
"A notification in this regard is likely to be issued soon," a senior government official told PTI.
Under e-series contracts, retail investors can buy and sell commodities in demat form. This is a unique market segment, which functions like the cash segment in equities, but offers commodities in the demat form in smaller denominations.
The clearing and settlement, pay-in and pay-out mechanism on the NSEL is based on T+2 settlement cycle.

(With inputs from PTI)