NSEL business was bona-fide and approved by the Government. On 8th July 2004, Finance Minister in his speech asserted importance of Spot Market.

2.  Introduction
 Inception Of NSEL
 Setting Up Spot Exchange
 NSEL Live Trading
 NSEL Operation
 Wrap Up

3.  In the year 2004, NSEL was conceptualized from the PM’s
vision to create national “Single Market”.
 NSEL business was bona-fide and approved by the
Government.
 On 8th July 2004, Palaniappan Chidambaram, Finance
Minister in his speech asserted importance of Spot Market.

4.  On May 2005, National Spot Exchange Limited
(NSEL) was incorporated by Multi Commodity Exchange
of India Ltd. (MCX).
 FMC seek’s concepts paper from MCX on creation
of National Spot Market on 31st May, 2006.
 Further taking into consideration on 18th July, 2006
MCX submitted a concept paper for setting up of Spot
Market.

5.  On January 2007, the 11th Planning Commission
recommended for setting up Spot Exchange.
 On 5th June 2007, NSEL was approved as a spot exchange
by Department of Consumer Affairs (DCA).

6.  National spot exchange limited (NSEL), commenced live
trading on October 15, 2008, and was the first commodity
spot exchange of the country.
 NSEL was the first electronic spot market to obtain license
under APMC Act in Maharashtra, Karnataka, Gujarat,
Orissa, and Rajasthan and had carried out trades in all
states by enabling farmers to sell their produce to bulk
consumers.

7.  NSEL had operations in 16 States in India along with
delivery-based spot trading in 52 commodities.
 NSEL commenced its operation in Bihar and Orissa for
creating direct market linkage between farmers and
upcountry buyers, exporters, processors etc.
 NSEL launched cardamom contract for the farmers of Kerala.

8.  On 26th August 2010, FMC recommended FCI to use Spot
Exchange platforms like NSEL, as they provide better
service and facilities compared to other models.
 On 5th August 2011, FMC appointed as designated
agency to regulate Spot Exchange.
 FMC wrote to MCA On 5th August 2011, urging RBI to
exempt Spot Exchanges from the purview of Payment and
Settlement System Act.

9. Source: Media Reports