Abstract
The National Spot Exchange Limited (NSEL) was launched to provide a nationwide platform for sellers (farmers) and buyers (consumers and traders) of agricultural commodities to transact and realize an efficient price in a highly fragmented and widely dispersed market. However, with the unearthing of a scam involving millions of dollars, this effort made to connect various local markets to enable efficient price discovery benefitting millions of farmers, failed to succeed. The case covers the objectives and evolution of NSEL and the regulatory environment on spot exchanges in India and provides a discussion point on the reasons for the failure of NSEL.
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