In India for the first time Copper is now available in the demat form for trade and investment. Successful launch of E-Gold and E-Silver with overwhelming response from the market prompted NSEL to come out with E-Copper in its E -Series of products. The E-Copper is designed for those who desire diversification into industrial metals but prefer the instrument which resembles a common stock or security. Buying E-Copper is not only a safe way of diversifying the portfolio but also has other advantages of liquidity and market depth. The systematic investment plan (SIP), which is being offered to investors for E-gold and E-silver, would also be offered for E-copper.
E-series commodities are basically commodity in the demat form which is specially designed to promote savings and investment among retail investors. These products are easily traded through the screen based trading terminals of NSEL which is easily accessible to investors on pan India basis. E-series of commodities are unique product offerings of national Spot Exchange limited for those who want to invest in commodities but otherwise find difficulties to handle the physical commodities
There has been product innovation in financial market mostly around Gold and Silver. Globally ETFs are being offered in Gold and Silver but not in other commodities. In India, other than gold, there are no ETFs available for any other commodity. This restricts retail investors from entering into the commodities market.
E-copper will enable those retail investors who prefer investing in commodity stocks with a view to gain benefits from the price appreciation. National Spot Exchange is the first and only exchange in India and world to offer E-Copper for the investment. So copper which used to be absent in the portfolio of investors is now available to diversify their portfolio.
The Exchange has designed E- Copper as an investment product in such a way, so that anyone can participate and invest easily without the worry of excise duty, VAT and other tax liability. E-Copper units can be purchased through the members of the Exchange. Client is required to have demat account with any of the exchange empanelled depositories. As E-series product can be bought electronically, it can also be sold electronically. The purchased units are credited into the clients demat account and equivalent physical copper is kept safely in the exchange-nominated vault. Demat facility enables buying, holding and selling in seamless manner. There is no risk of commodity custody/theft.
The contract in E-copper is available for trading on NSEL platform from Monday to Friday from 10 am to 11.30 pm. The trading unit for E-Copper is 1 unit, which is equivalent to 1 kilogram of Copper with the tick size of Rs 0.05/ unit. The clearing and settlement pay-in and pay-out are based on T+2 cycles and settled completely in demat form. In E-Copper contract, intraday trading is allowed but all open positions (buy and Sell trades) must result into compulsory delivery in demat form on the designated delivery day.
As the stock markets remain volatile throughout the world, people are looking to diversify their investments away from the Stock Market into other areas. One of the most promising of these is the market for precious metals. Gold and silver have traditionally served investors very well and have been used for thousands of years for trade. However, now a new metal is emerging as the preferred investment option, which is copper. The price of copper is dictated by the economic principle of supply and demand and many investors are increasingly finding copper as an interesting investment. Copper is used extensively in a number of industries and therefore it tracks the industrial demand quite closely, which makes copper have a great bull run during the good economic times.