A Study on Derivatives Market in India:Current Scenario and Future Trends

Kapadia, Riddhi (2006) A Study on Derivatives Market in India:Current Scenario and Future Trends. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

The derivative market has become multi-trillion dollar markets over the years. Derivatives are financial commitments indexed or linked in some capacity to changes in the value of underlying assets. The bulk of the derivatives trading internationally are linked to currencies and interest rates, other derivatives are linked to equity or equity indices. A very small volume of derivatives, compared to the total, is indexed to traditional commodities. Small by comparison to other derivatives markets, these commodities-indexed derivatives markets are large compared to the underlying physical commodity markets.

The Aims and Objectives of this research are to have an in-depth knowledge of the derivative markets in India and in this report entitled "A Study on Derivatives Market in India, Current Scenario and Future Trends", I have tried my level best to make it simple and understandable.

Questionnaires, sampling and personal interviews were conducted for answering the research questions and achieving aims and objectives of research.

The findings were in favour of derivatives being vital for the stock market and they are not diminishing in today's world, but they are at the booming stage; and every institutional investor would want to use derivative as a tool to maximise its profits.

The research deals with basics of derivatives and its evolution in India. Also statistics about the global derivatives market is given and it is heartening to know that India's NSE ranked 20th during 2006 in the global derivative market. In the later part of the research evolution, current scenario and prospects of equity derivatives are discussed. In the concluding section, the use of derivatives by various financial institutions and obstacles to derivative market development is debated. In the report it is concluded that the derivatives market will continue to grow, and there is a need to remove the obstacles in its way. Also, more products should be introduced in the derivatives market.

Item Type: Dissertation (University of Nottingham only)
Keywords: Derivatives Market, Future Trends
Depositing User: EP, Services
Date Deposited: 05 Jan 2007
Last Modified: 23 Mar 2018 02:47
URI: https://eprints.nottingham.ac.uk/id/eprint/20700

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