National Spot Exchange Limited

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National Spot Exchange Limited (NSEL)
Founded 2005
Headquarters Mumbai, India
Key People Shankarlal Guru, Chairman; Jignesh Shah, Vice Chairman (former)

Vice Chairman - MCX, Founder of FTIL

The National Spot Exchange Limited (NSEL) is a national –level, institutionalized, electronic spot trading platform for commodities in India. NSEL commenced “Live” trading on October 15, 2008.[1]

In August of 2013, the Economic Offences Wing of Mumbai Police found evidence of irregularities on the part of brokers in NSEL fraud. An interim report on the police’s forensic audit showed evidence of hawala transactions, benami trades and illegal code changes. The interim report also stated some of the directors inside the firm were aware of the impending danger. [2]

The scam revealed that some of NSEL brokers’ clients had been allowed to take longer-term forward contracts, despite the exchange only being permitted to hand spot contracts in commodities. NSEL reportedly permitted 30-40 day forward contracts on the basis of warehouse receipts trading, without checking whether corresponding commodities existed in the warehouses. [3]

In November of 2013, the Economic Offences Wing of the Mumbai police arrested NSEL’s former Chief Executive Officer Anjani Sinha and two other senior officials after an investors’ group alleged that the executives diverted funds and failed to settle about 56 billion rupees ($911 million) in dues to investors. The NSEL has failed to meet most of the payment targets set under the supervision of the Forward Markets Commission, the commodities futures market regulator in India.[4]


Products and Services

Key People


  1. National Spot Exchange About Us. National Spot Exchange.
  2. Evidence of hawala, benami trades in NSEL, says interim EOW report. Business Standard.
  3. The Climb And Slide Of Ambitious Indian Entrepreneur, Jignesh Shah. Forbes.
  4. Founder of Top India Commodity Exchange Resigns Amid Probe. Bloomberg.