National Spot Exchange Limited (NSEL), an electronic trading platform, has signed a memorandum of understanding with Belarusian Universal Commodity Exchange (BUCE) on Thursday.
The MoU will enable Indian producers to explore the possibility of exporting their produce to Eastern European countries through BUCE’s network.
While BUCE will provide counter party guarantee with respect to the buyers from eastern Europe, NSEL will provide similar guarantee for Indian exporters. The Belarus Government holds a 98 per cent stake in the BUCE statutory capital.
Since BUCE has its membership in 56 countries and more than 12,000 companies are connected with their network, this MoU would provide a strong marketing support to Indian exporters and importers.
Anjani Sinha, Managing Director, NSEL, said the trades routed through the spot exchange on both sides will be totally transparent, as they will be executed through electronic platforms. They will also be free from credit risk, as the respective spot exchanges will guarantee performance of the counter party, he said.
The list of commodities that are traded at the BUCE includes timber, farm products, industrial and consumer goods.