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Finance Project

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Finance Project
SUMMER INTERNSHIP PROGRAM

A REPORT ON

COMMODITY FUTURES: A HEDGING TOOL

BY

HEMALI LATHIA
&
DEEPIKA BAJORIA

A report submitted in partial fulfillment of the requirements of

MBA Program of

Amity Global Business School

ACKNOWLEDGEMENT

First of all I would like to thank Mr.Chetan Kumar, branch Manager Religare Securities Ltd., Bokaro branch who gave me a chance to do my project in his reputed branch.

I would also like to thank Mr.Binay Kumar, Manager Commodity, Religare Securities Ltd, Bokaro branch under whom I was doing my project and without his guidance this project wouldn’t have been possible. He always motivated me to put my best foot forward by setting high standards. Hence this project is a testament to the desire for gaining knowledge that he has ignited in me.

I would also like to thank Mr.Ajay Kumar and Mr.Himanshu who were always there to help me in making this project and imparting lots of knowledge regarding the market.

Finally I would like to thank all the people who gave their precious time to respond to the questionnaires and hence helped me gaining valuable information and complete the survey successfully.

TABLE OF CONTENTS

Abstract 1. Introduction…………………………………………….………………………. 1. About the Company…………………………………… 2. Future Contract……………………………………….. 3. Spot Verses Future Contract…………………………. 4. Participants in Derivative Market…………………….. 5. Commodity Market……………………………………. 6. Difference between Commodity and Financial Market………. 7. Advantage to participants in the commodity futures market…….. 8. Indian scenario………………………………………………….. 9. Major Exchanges in India……………………………………….. 1.10 Commodities traded in India………………………………….. 1.11 Regulating Body………………………………………………… 1.12 Global Commodity Exchanges………………………………….. 1.13 Price Discovery………………………………………………….. 1.14 Commodity Futures: A hedging

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