A lot of people are worried about what to do with their NSEL e-Series Gold and Silver holdings, which are in demat mode. Should you convert them to delivery? Are they safe?
Conversion to delivery seems to be taking time. And honestly, it could be because of the small and fragmented size of gold holdings (bars have to be cut to deliver).
However, there is a fear that NSEL may not be doing its best to deliver. Business Standard reports that NSEL is facing serious redemption pressure, and at the same time, customers facing delays are seeing a drop in customer service standards also. (Which is par for the course in India,really)
The fear that NSEL doesn’t have Gold or Silver may be misplaced, though. A recent audit by Sharp and Tannan says that they have tallied NSEL stock reports with the actuals at the vault. (But at this point, I am not inclined to believe NSEL stock reports are the same numbers as the DP report should indicate)
Also, NSEL might pay in cash, to redeeming e-Series investors. But this complicates matters as the money will go to the brokers, who might eat a little of the exchange.
