Looking to exit National Spot Exchange? Here's what you can do
Since the National Spot Exchange has a huge outstanding towards
investors, and the issue has snowballed into a big controversy, it is
unlikely that normal functioning in the exchange will be resumed any
time soon.
If you have holdings in the e-commodity series of the National Spot Exchange Limited (NSEL), you may have to take physical delivery of the commodity as the exchange has suspended trading in eseries contracts till further notice.
The exchange had to suspend trading in the e-series, the demat mode of holding commodities, after the government found that it was offering unapproved forward commodity contracts to investors. The government has already stopped the exchange from offering such forward contracts.
Since the exchange has a huge outstanding (Rs 5,600 crore) towards investors, and the issue has snowballed into a big controversy, it is unlikely that normal functioning in the exchange will be resumed any time soon, and therefore, investors holding e-commodities will have to convert their demat holdings into physical if they want to exit immediately.
You can take physical delivery of an e-commodity by paying requisite charges such as making fee, delivery charges and taxes.
In case of e-gold, conversion of 1 gm gold coin/bar will cost Rs 100, while conversion of 8 gm and 100 gm will cost Rs 400. No conversion fee will be charged for gold coins/bar of higher denomination.
Conversion of e-silver holdings into the physical form will cost up to Rs 4,000. There are no making charges on conversion of e-platinum.
The exchange had to suspend trading in the e-series, the demat mode of holding commodities, after the government found that it was offering unapproved forward commodity contracts to investors. The government has already stopped the exchange from offering such forward contracts.
Since the exchange has a huge outstanding (Rs 5,600 crore) towards investors, and the issue has snowballed into a big controversy, it is unlikely that normal functioning in the exchange will be resumed any time soon, and therefore, investors holding e-commodities will have to convert their demat holdings into physical if they want to exit immediately.
You can take physical delivery of an e-commodity by paying requisite charges such as making fee, delivery charges and taxes.
In case of e-gold, conversion of 1 gm gold coin/bar will cost Rs 100, while conversion of 8 gm and 100 gm will cost Rs 400. No conversion fee will be charged for gold coins/bar of higher denomination.
Conversion of e-silver holdings into the physical form will cost up to Rs 4,000. There are no making charges on conversion of e-platinum.
