<p>The government is likely to ban trading in e-series contracts on the National Spot Exchange Ltd (NSEL), a move that could hit its business further.<br /><br /></p>.<p>NSEL offers e-series contracts in gold, silver, copper, zinc, lead, nickel and platinum.<br />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.<br /><br />NSEL is grappling with the problem of payment settlement of about Rs 5,600 crore after the suspension.<br /><br />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.<br /><br />"A notification in this regard is likely to be issued soon," a senior government official said.<br />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.<br /><br />The clearing and settlement, pay-in and pay-out mechanism on the NSEL is based on T+2 settlement cycle. <br /><br />Appoints payouts panel<br /><br />Financial Technologies (India) said on Monday that its unit National Spot Exchange Ltd (NSEL) has set up a four-member committee, including a former Bombay High Court judge, a former chairman of the market regulator and former chief secretary of the state of Maharashtra to oversee payouts to traders.<br /><br />Chairman and CEO Jignesh Shah said at a news briefing that trading members who do not fulfil their payment obligations would be charged a 16 per cent interest, without clarifying on the time periods in which it would be applied.<br /><br />The announcement comes after NSEL said on Sunday that most of its trading members had proposed settling outstanding contracts over several months after the suspension of forwards trading.<br /><br />Financial Technologies shares gained 34.3 per cent in early trade on Monday, recovering from a 73 per cent fall in the previous two sessions sparked after the commodity exchange suspended trading in most forward contracts last week. The exchange is expected to announce the final settlement schedule for all outstanding contracts on August 14, Shah said.</p>
<p>The government is likely to ban trading in e-series contracts on the National Spot Exchange Ltd (NSEL), a move that could hit its business further.<br /><br /></p>.<p>NSEL offers e-series contracts in gold, silver, copper, zinc, lead, nickel and platinum.<br />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.<br /><br />NSEL is grappling with the problem of payment settlement of about Rs 5,600 crore after the suspension.<br /><br />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.<br /><br />"A notification in this regard is likely to be issued soon," a senior government official said.<br />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.<br /><br />The clearing and settlement, pay-in and pay-out mechanism on the NSEL is based on T+2 settlement cycle. <br /><br />Appoints payouts panel<br /><br />Financial Technologies (India) said on Monday that its unit National Spot Exchange Ltd (NSEL) has set up a four-member committee, including a former Bombay High Court judge, a former chairman of the market regulator and former chief secretary of the state of Maharashtra to oversee payouts to traders.<br /><br />Chairman and CEO Jignesh Shah said at a news briefing that trading members who do not fulfil their payment obligations would be charged a 16 per cent interest, without clarifying on the time periods in which it would be applied.<br /><br />The announcement comes after NSEL said on Sunday that most of its trading members had proposed settling outstanding contracts over several months after the suspension of forwards trading.<br /><br />Financial Technologies shares gained 34.3 per cent in early trade on Monday, recovering from a 73 per cent fall in the previous two sessions sparked after the commodity exchange suspended trading in most forward contracts last week. The exchange is expected to announce the final settlement schedule for all outstanding contracts on August 14, Shah said.</p>