Professional Documents
Culture Documents
SESSION 10
NBHC
NBHC ( National Bulk Handling corporation ) is an end to end solution in warehousing and bulk handling of agri- commodities. Its a group company of Financial Technologies ( FT) Main objective of NBHC with a view to cater to the needs of the members of MCX NBHC successfully manages a chain of accredited warehouses across India. Ware house accreditation process includes operational , technical and financial parameters.
Services of NBHC
Scientific warehouse maintenance and storage of agri commodities Bank finance assistance for construction and renovation of warehouses Installation of V- Sat terminal , to get information about online stock of commodity Collateral management services Bank Finance assistance for lending against warehouse receipt Logistic assistance Quality certification assistance Training and awareness programs Research reports Receiving , storage of commodities.
Benefits to Banks
Volume of Business : Once a farmer keeps his produce with designated NBHC warehouses , banks can disburse loan and thus volume of business will increase/. Credentials of NBHC : Banks tie-up with NBHC , which would serve as a business partner of international repute. Quality certified commodities : NBHC issues Quality certification which provides documentary proof about the quality of commodity Timely information : NBHC will help banks to arrive at the value of the cargo and to have a view on the movement of price Sale of goods in organized market : The organized markets reduces counter party risk. In case of any default by the borrowers the bank have an organized market to fall back on.
YES
NO
Only storage at WH
Inform Quality certification agency for Sampling and analyzing If , No then rejected Want to Keep Warehouse only for storage
NO
YES
Goods Accepted
YES
National Spot Exchange is a national level institutionalized, electronic, transparent spot Exchange, which is poised to transform the rural economy. National Spot Exchange is a state-of the-art unique market place providing customized solutions to various problems faced by the farmers, traders, processors, exporters, importers, arbitrageurs, investors and the general mass. This project was launched by Shri Sharad Pawar, Honorable Union Minister for Agriculture and Consumer Affairs, Food and Public Distribution, in a function at New Delhi on 10th February, 2005.
Benefits of NSEL
Benefits to Farmers Realizing the best possible price at the time of sale for agricultural produces. Trade and payment guarantee. Cost reduction in handling and other activities. Access to a national level transparent market, where direct selling to processors or end users would be feasible. Increase in holding capacity due to availability of warehouse receipt financing. Increase in bargaining power due to availability of an alternative market.
Benefits of NSEL
Benefits to Traders Common National Level Platform for Buying and Selling of Commodities. No counter party risk in trade. Procurement and disposal of huge quantity possible. Benefits to Corporates/ Processors/ Exporters/ Importers Facilitates bulk procurement operations without counter party and quality risks. Customized services relating to storage and logistics. Availability of professional services for grading and standardization. Complete avoidance of hassles relating to physical market operations.
Benefits of NSEL
Benefits to Arbitrageurs Advantage of cash-future arbitrage electronically. Disposal of deliveries received on Future market. Jobbing and spread trading between cash and futures. Benefits to Futures Exchanges Transparent spot price available for Due Date Rate calculation. Ease of moving towards compulsory delivery contracts through structured spot market. Healthy growth of futures market ensured through development of the structured spot market.
ICIN is generated on the uniqueness of the following 4 parameters Commodity Warehouse location Grade / Fineness of the commodity Validity date of the commodity
Change in any of the above parameters will change in generation of new ICIN
If the futures contract on its expiry results into delivery , the member having delivery obligation is required to give delivery of the commodity to exchange on or before pay in date. In case of pay- out, exchange credits the commodity to the buying member pool account.
PAY- IN
Selling member pool a/c
PAY- OUT
Buying members pool account