Nsel Presentation

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About us.SMC Group, founded in 1990, is India’s leading share and stock broker, provides a wide

range of financial services and investment solutions. A blend of extensive experience, diverse talent and client focus has made us the 4th largest broking house in India(Source: Dun and Bradstreet, 2008). We are also amongst the first financial firms in India to expand operations in the lucrative gulf market, by acquiring license for broking and clearing member with Dubai Gold and Commodities exchange (DGCX). We provide platform for trading in NSE, BSE, F&O, NCDEX, MCX, MCX-SX, NMCE, ICEX & DGCX

Our Strength and Services.

SMC has expanded its operations domestically as well as internationally. Existing network includes regional offices at Mumbai, Kolkata, Chennai, Cochin, Ahmedabad, Jaipur, Hyderabad, Bangalore plus a growing network of 2300+ offices spread across 450 cities/towns in India. We offer institutional and retail brokerage of equity, currency, commodities, derivatives, online trading, depository services, fixed Deposits, IPOs and mutual funds distribution, dedicated desk for NRI and institutional clients, insurance broking, clearing services, margin funding, investment banking, portfolio management, wealth advisory & research. We have a highly efficient workforce of over 6000 employees and over 7500 financial advisors serving the financial needs of more than 6,75,000 satisfied investors.

Our Credentials . Winner of Best Equity Broking House for the year 2010 (Source: BSE-D&B)

4th largest broking house of India in terms of trading terminals (Source: Dun and Bradstreet, 2008) 5th largest sub-broker network in the country (Source: Dun and Bradstreet, 2007)

5th largest distributors of IPOs in retail in India (Source: Prime Data Rankings, March 2010)

Awarded the Fastest Growing Retail Distribution Network in financial services (Source: Business Sphere, 2008)

Received Major Volume Driver award from BSE for 3 years consecutively(2004-05, 2005-06 and 2006-07)

Nominated amongst the top 3, in the CNBC Optimix Financial Services Award 2008 under "National Level Retail Category"

Amongst the First Financial Firms in India to expand operations in the lucrative gulf market, by acquiring license for broking and clearing member with Dubai Gold and Commodities exchange (DGCX)

One of the largest proprietary desk for doing near risk-free arbitrage in equities and commodities

Institute of Economic Studies (IES) has honored our Chairman with the ‘Pride of India’ and ‘Udyog Rattan’ awards. Also, IIFS has conferred him with ‘Glory of India’ award recently

National  Spot  Exchange  Limited  or  NSEL  is  the  national  level,  institutionalized, demutualised,  transparent  and  Electronic  Spot  Exchange  set  up  by  Financial Technologies  India  Limited  (FTIL)  and  National  Agricultural  Co‐operative Marketing  Federation  of India  Limited(NAFED)  to  create  a  delivery  based  pan

India spot market for commodities. 

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Commodities  traded…

NSEL  conducts  spot  trading  in  various  agricultural  and  non  agricultural commodities, including Gold and Silver. However,E-series  is  the  new  segment launched  by  NSEL,  which  is  exclusively  designed  to  develop a  cash  segment  of commodities  for  promoting  savings  and  investment  by  retail  investors  in commodities  in  demat  form.  E‐GOLD  is  the  first  instrument  launched  by  NSEL under  E-series,  which  tracks  physical  gold  prices  and  makes  it  available  in smaller denomination (in multiples of 1 gram) in demat form for small investors.  

Contract Symbol E-GOLD *; E-SILVER *; E-COPPER*

Trading period Mondays through Fridays (except Exchange specified holidays)

Trading session 10:00 AM to 11:30 PM

Trading unit 1 unit of E-GOLD, equivalent to 1 gram of Gold 1 Unit of E-Silver, equivalent to 100 g of Silver 1 Unit of E-Copper, equivalent to 1 Kg of Copper

Settlement Cycle T+2

Delivery Centers Mumbai, Delhi, Ahmedabad, Jaipur, Kolkatta, Hyderabad, Chennai

Delivery Logic Compulsory delivery. All open positions (buy

and Sell trades) must result into compulsory

delivery in demat form on the designated delivery day.

E-Series Product details

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Contract Symbol E-GOLD

Trading period Mondays to Fridays (except Exchange specified holidays)

Trading session 10:00 AM to 11:30 PM

Trading unit 1 unit of E-GOLD, which is equivalent to 1 gram of Gold 995 purity

Tick size (minimum - 10 paise per unit)

Daily Price Range 5%

Max order size 10000 units

Margin parameters

Initial Margin Delivery Margin

In case of additional volatility, a special margin of such percentage, as deemed fit, will be imposed immediately on both buy and sale side in respect of all outstanding position, which will remain in force for the same trading day.

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Contract Symbol E-SILVER

Trading period Mondays to Fridays (except Exchange specified holidays)

Trading session 10:00 AM to 11:30 PM

Trading unit One lot of 100 demated units of E-Silver, which is equivalent to 100 grams of Silver of 999 purity

Tick size (minimum - 10 paise per unit)

Daily Price Range 5%

Max order size 50000 units

Margin parameters

Initial Margin Delivery Margin

In case of additional volatility, a special margin of such percentage, as deemed fit, will be imposed immediately on both buy and sale side in respect of all outstanding position, which will remain in force for the same trading day.

Contract Symbol E-COPPER

Trading period Mondays to Fridays (except Exchange specified holidays)

Trading session 10:00 AM to 11:30 PM

Trading unit One Unit of E-Copper, which is equivalent to 1KG of Copper

Tick size 0.05 / 1 KG / Unit

Daily Price Range 5%

Max order size 50000 units

Margin parameters

Initial Margin Delivery Margin

In case of additional volatility, a special margin of such percentage, as deemed fit, will be imposed immediately on both buy and sale side in respect of all outstanding position, which will remain in force for the same trading day.

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Parameter NSEL E-Gold

Gold ETF Bank Jewellers

Buy & Sale / Storage

Dematerialized Form

Dematerialized Form

Physical Form Physical Form

Pricing Linked to Indian Gold Prices

Linked to International Gold Prices

May vary May vary

Impurity Cannot exist - May exist May exist

Expense for Storage

Nil Yes Yes Yes

Security Taken Cared by exchange

Taken care by fund house

Owners risk Owners risk

Resale Secondary Market Secondary Market May not be possible

At a discount.

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Price comparison of Gold Coin from various sources

  E-Gold   HDFC Bank* State Bank Jeweller*

Particulars  Delivery  Of India  Tanishq

No. of Unit (Gram) 10 10 10 10

Base Price `/gram( Previous close) 2064.10 2417.00 2218.00 2363.00

Premium for 999 purity** 8.30 0.00 0.00 0.00

Price for 999 fineness `/10 gram coin 20723.98 24170.00 22180.00 23630.00

Brokerage @ ` 0.25% of purchase rate (`/Unit) 5.16 0 0 0

Total Brokerage (`/10 gram) 51.60 0 0 0

Service [email protected]% on brokerage 5.32 0 0 0

Delivery Charge (`/10 gram) 200.00 0.00 0.00 0.00

Coin Making Charge (`/10 gram) 200.00 0.00 0.00 0.00

Storage Charge ( `) 0.000 0.000 0.000 0.000

Vat Tax (1%) 207.24 0.00 221.80 0.00

Total Overheads (`/10 gram) 664.16 0.00 221.80 0.00

Net Cost of 10 grams coin of 999 fineness ( `)        

  21,305.16 24170.00 22401.80 23630.00

Price difference E-GOLD Coin Vs others ( `)   2864.84 1096.64 2324.84

*Price quoted is inclusive of VAT ** NSEL E-GOLD is quoted for 995 purity        

Particulars NSEL E-Gold

Gold Bees ETF

SBI GETS ETF

17th March 2010 (Launch Date)Per unit

1700.80 1648.40 1680

23rd December 2010(previous closed)(per unit)

2064.10 1986.65 2022.00

Profit (per unit) 363.30 338.25 342

Return % 21.36 20.52 20.36

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Returns since launch E-Gold vs. Gold ETF AND SBIGETS ETF

Normal Market Description : T+2

Particulars Day Pay-in Pay-out

Mark-to-Market T+1 Up to 11:00 AM At 12:00 Noon

Funds – Normal T+2 Up to 1:00 PM At 05:30 PM

Commodities - normal

T+2 Up to 1:00 PM At 05:30 PM

Auction Market Description : T+2-AU

Funds Auction + 2 Auction + 2 Up to 1:00 PM

Commodities Up to 1:00 PM At 05:30 PM At 05:30 PM

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For DP account

AMC 250

TRANSACTION CHARGES 24

REMETRIALISE 125

PLEDGE 50

SERVICE TAX 10.36

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Delivery

Vat 1%

delivery charges 200

making charges 200

Trading account

BROKERAGEas per client commitment

TRANSACTION CHARGES 1000 / Cr

STAMP DUTY/OTHER CHARGES 100 / Cr

E-GOLD is the new incarnation of gold, innovated by National Spot Exchange (NSEL),which enables investors to invest their funds into Gold in smaller denomination and hold it in demat form. It is available on the pan India electronic trading platform launched by National Spot Exchange, which can be accessed through members of NSEL or their franchises. It provides a unique opportunity to buy, accumulate, hold and liquidate “Electronic Gold (E-GOLD) as well as to convert the same into physicalgold coin/ bar in a seamless manner.

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It is affordable, as it is available in multiples of 1 gram, which is within the reach of “rural Bharat”. While lower income group can use this product to park their paltry savings and accumulate wealth over a period of time, HNIs and institutional investors can use it for diversifying and balancing their investment portfolio.

Transparent pricing: E-GOLD is available on the order driven electronic trading platform, where investors are also

allowed to quote their own buying and selling price. The same price is available across the country and so, the buyers and sellers from anywhere in the country can buy and sell at this price. The impact cost (difference between buy and sale quote) is as low as Re 1. The price quoted on the screen are actionable price. Investors can buy or sell at this price. This ensures transparency, credibility and authenticity of pricing.

Uniform pan India pricing: E-GOLD provides the benchmark uniform price of gold valid for the entire country. In

physical market, the price varies from place to place and even though the price is relatively lower at some location,

investors from other regions do not have access to buy at that price. E-GOLD removes such regional bias,

disparities and ambiguity and provides a uniform price for the entire country. Hence, E-GOLD is the first instrument

in the country to implement the doctrine of “Common Indian Market.”

Low custodial charges and transaction fee: Compared to Gold ETF, E- GOLD is around 10 times more efficient in

respect of custodial charges. The cost of holding E-GOLD comes to around 0.4% per annum. In

monetary terms, it comes to 60 paisa per unit per month.

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Benefits…

Contact DetailsFeel free to contact

SMC Comtrade Limited11/6 B Shanti Chambers Pusa Road Delhi -5

Phone - 011-30111000 E-mail – [email protected]

Naushad Ansari – 0965455588 or E-mail [email protected]

Amanpreet – 09717378886 or E-mail [email protected]

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