Question on NSEL E-Series

#1
I have a few questions regarding trading on NSEL. I want to know if it's safe and have the following questions

Does SEBI regulate these E-Series Products?

If someone faces an issue with NSEL, or the E-Series products, then who should they address it to? Can they go to SEBI? Is SEBI actively regulating it or does it fall under the purview of some other agency?

Does anyone hold the underlying physical gold?

Gold ETFs hold underlying physical gold equivalent to the number of units of funds they have issued, and they publish the data periodically, but I didn’t find information on who holds the physical gold, or if at all it is being held at somewhere at all times.

If everyone who holds a E-Series contract requests for gold rematerialization then what will happen?
 

Alchemist

Administrator
Staff member
#2
SEBI does not regulate commodities markets, FMC does.

Forward Markets Commission (FMC) headquartered at Mumbai, is a regulatory authority for commodity futures market in India. It is a statutory body set up under Forward Contracts (Regulation) Act 1952.
Forward Markets Commission

There is underlying physical gold and it is held by vaulting and security agencies.

For the purpose of storage and vaulting of gold and silver, National Spot Exchange has signed agreement with Brinks Arya and Group 4 Securitas, vaulting and security agencies handling bullion in India.

In case of gold for the purpose of dematerialisation, the member has to first source physical gold from importing agencies.
NSEL to allow retail participation in spot commodity market - Economic Times
 
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