Derivatives Market in India
Dr. Suhasini Parashar
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Abstract
Due to the wave of globalization and liberalization across the world , risk is a feature of capital and commodity
markets which effect variations in financial assets prices, interest rates and exchange rates, and subsequently,
to exposing the corporate world to financial risk . The derivatives market provides an effective solution to
the problem of risk embedded in the price of the underlying asset. In India , the emergence and growth of
derivatives market is relatively a recent phenomenon. Since its inception in June 2000 , derivatives market
shows growth both in terms of volume and number of traded contracts and derivatives trading in India has
surpassed cash segment in terms of turnover and number of traded contracts . In this article ,focus is on types
of derivative products and its scope . Financial derivatives are available in the forms of currency forwards and
options . Safety of international finanacial transaction , new financial instruments such as currency and interest
rate , futures , options , swaps and analysis of derivative trading in India with the status of global derivatives
markets vis-avis the Indian derivatives market . The focus is on Potential of Derivative Market in India.
Keywords: Forward; Futures; Options; Financial Derivatives; Risk Management
References
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