E-Silver is a new incarnation of silver, innovated by National Spot Exchange (NSEL), which enables investors to invest their funds into silver in smaller denomination and hold it in demat form. It is available on the pan India electronic trading platform set-up by National Spot Exchange, which can be accessed through members of NSEL or their franchises. It provided an unique opportunity to buy, accumulate, hold and liquidate "Electronic Silver (E-Silver)" as well as to convert the same into physical silver coin/ bar in a seamless manner.
NSEL has come up with a brilliant idea for millions of investors willing to invest their small savings into silver, by making silver available in smaller denomination of 100 grams and its multiple.
Following the successful launch of E-GOLD, National Spot Exchange launches E-SILVER, the second in the E –Series products designed to promote savings and investment by the masses. E Silver has been operational since April 21, 2010.
This is a drive towards financial inclusion, as silver is made available at the same price in the entire country for all segments of the society. A small investor, based in any part of the country can buy Silver at the same price. A small investor willing to invest Rs. 5000 or an HNI, willing to invest Rs. 5 crores, can buy silver at the same price, because E Silver is based on the principles of just and equity and impartial treatment to all.
E-silver is a good option for investors looking to invest in silver, and also it will be backed by physical delivery. Silver will be stored in Exchange designated vaults and will be tradable on the NSEL platform. The product will ensure seamless entry and exit as well as transparent pricing to all investors. Since it can be traded in denominations as low as 100 grams (valued at around Rs 2800), opening up investment option even for lower income group. E-Gold, within one month of its launch ( 17th March ’10) witnessed a huge response from investors.
The timing for E-SILVER trading will be from 10:00 am to 11:30 pm from Mondays to Fridays, the contracts being sized at 100 gram and multiples thereof. The minimum tick size will be 10 ps per quote. The clearing and settlement pay-in and pay-out are based on T+2 cycles, and will be settled in demat form only. Investors will be required to open demat account with any DP empanelled with Spot Exchange to participate in this contract.
This opens up a huge business opportunity for members of National Spot Exchange in terms of brokerage activity by getting millions of clients over a period of time. This also opens up huge business opportunity for DPs empanelled with NSEL by opening millions of clients beneficiary accounts.
