A Comprehensive Study of Indian Derivatives Market

Topics: Futures contract, Derivative, Option Pages: 43 (12710 words) Published: March 4, 2013


Research Project

“A comprehensive Study of
Indian Derivatives Market”

Submitted To: Submitted By: Miss Payal Goyal

In partial fulfillment of the Requirements For
The Degree of Master of Business Administration


Privilege is what I feel expressing my sincere respect to my guide, adviser and well-wisher Prof. ………. faculty of CIMR , Indore. Apart from his technical guidance , his caring attitude and morel , encouragement has been very much crucial for me . During this project . He has inspired me through out the project period and has extended support at all possible juncture.

At various stages in the project it is required to interact with real world and get info. And help from all available sources . Many people have contributed toward making this project successful. Before we get in thick of things I would like to thanks her again.

Payal Goyal


1. Preface

2. Introduction to Capital Markets

3. Derivatives

4. History of Derivatives

5. Derivatives instrument

6. Comparative Study

7. Quationare & research

8. Conclusion

9. Bibliography


Financial system is the mirror reflection of an economy. The performance of any economy to a large extent is dependent on the performance of the Financial Institution. Financial system plays an important role by mobilizing saving and allocating them to the most profitable activities, and enables society to make more productive use of its scarce resources. The Financial system consist of many institution,

instruments, and markets. Financial Institution range from moneylender to banks, pension funds, insurance companies brokerage house, investment trust and stock exchange. Financial markets are, by nature, extremely volatile and hence the risk factor is an important concern for financial agents. To reduce this risk, the concept of derivatives comes into the picture. Derivative securities provide them a valuable set of tools for managing this risk. Derivative securities have penetrated the Indian stock market and it emerged that investors are using these securities for different purposes, namely, risk management, profit enhancement, speculation and arbitrage This project describes the evolution of Indian derivatives markets, the popular derivatives instruments, and the main users of derivatives in India. I conclude by assessing the outlook for Indian derivatives markets in the near and medium term. OBJECTIVE OF STUDY

I undertook this project to continue my education in a financial area that occupied a significant portion of my Professional life .A part of finance that is at once so a practically and intellectually exciting that is had to leave alone. So am doing my research in finance field .My project is

“A Comprehensive study of

We have taken NSE for our study because in last three years NSE has contributed for 95% of total stock market trading turnover in comparison with BSE


After independence India followed a development strategy based on extensive governmental control, including near complete public ownership of commercial enterprise mandatory governmental approval of new investments, protectionism. All these posed insurmountable obstacles to the growth of capital markets in India. Most of the finance for investment projects was sourced through banks, which were heavily administered by the government. The development of financial markets in the country was slowed due to the following factors: 1) Governmental control over the banking sector.

2) Government control over...
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