NKVD Watches and Cameras

[Will]

From time to time (actually, very frequently), I see offered for sale cameras that are described as being late 1930's era Soviet copies of Leica cameras. They sometimes have some sort of engraved "NKVD" designation and serial number on the top of the camera.

Similarly, I also frequently see offered for sale wristwatches that are supposed to be "vintage" and which, on the face, has a color rendering of the NKVD "egg".

The cameras are a complete mystery to me, and I have always assumed that the watches were fantasy items, since I couldn't imagine a Chekist walking around wearing one of them. But I thought that I would raise the subject here.
Is there any legitimacy to the cameras? Or is "NKVD" description simply being used by sellers because they were made at the Dzherzhinsky facory?
Were there actually wristwatches of the 1930's or 1940's that bore an NKVD designation on their faces (as opposed to the possibility of an actual award watch that might be engraved with a presentation)?