A Study on Derivatives Market in India

A Study on Derivatives Market in India

Author Name : atil. Sushma Swaraj , Ch. Deepthi Reddy

ABSTRACT

Derivatives market has a significant role to play in a country's economic development .financial derivatives have become increasingly popular and utmost frequently used in the world of finance. This has growth with on extra ordinary speed all over the world that now it is called as the derivatives market. This article aims to study futures, forewords and options by considering a company derivative from Indian stock market. The Indian derivative market has become multi-trillion dollar market over the year. Marked with the ability to partially and fully transfer the risk by locking in assets prices, derivatives are gaining popularity among the investors. Since the economic reforms of 1991, maximum efforts have been made to boost the investors' confidence by making the trading process more users friendly. Still, there are some issues in the market. So, the present paper is an attempt to study the evolution of Indian derivative market, trading mechanism in its various products and the future prospects of the Indian derivatives market. The present paper is descriptive in nature and based on secondary data. Inspire of the growth in the derivatives market, there are many issue which need to be immediately resolved to enhance the investors' confidence in the Indian derivatives market. Keywords: Financial market, Derivatives, economic reforms, Stock market.