Trends and Prospects of Derivative Markets in India

Posted: 23 Mar 2011

Date Written: March 16, 2011

Abstract

With the advent of liberlisation, privatisation and globalization with the free economy environment, maximum efforts are made in strengthening the investor confidence. The basic reason underlined is in context to free and regular flow of funds to the corporate sector alongwith establishing a strong investor base by including more and more middle and small investors with their investible funds. In one way, the stock market is an experienced platform for the any existing investors to go for accumulating their wealth by means of diversification without any hedging to the prevailing risk factors, while the new concept of derivative market trading mechanism has helped them a lot in minimizing the risk factors to a grater extent. This has also led to the redefining the economy of the nation to a significant status before the global scenario. The inclination of MNCs towards Indian corporate world has again added some fuel in giving a new shape and size to the existing investor population, increased pace of industrialization, speedy growth of market capitalization along with a focused and sustainable economy.

The scalable performance of the Indian economy has been made a point of attraction to both individual and institutional investor in realizing the own dreams of multiplying their investment with true and timely returns. The disclosed facts and figures of BSE and NSE at their respective official websites have also portrayed the increased importance of the prevailing efficient capital market in terms of resource mobilization through investors’ perception, participation, and preferences.

In this context, the emergence of a well-functioning derivative market, with a wide range of trading mechanisms, is definitely a boost to all those perspective investors who are willingfully agreed to join the mainstream of investment business to meet with their own expectation of return on investment alongwith a support to structurise the economy in a new way.

The present topic is an endevour to have an analytical study on the present status of derivative market in India by bridging the gap of its past experiences to project the future possible performances.

Keywords: Derivatives Market, Underlying Assets, Key Indicators, Performances

Suggested Citation

Mishra, Dr. Sisira Kanti, Trends and Prospects of Derivative Markets in India (March 16, 2011). Available at SSRN: https://ssrn.com/abstract=1788024

Dr. Sisira Kanti Mishra (Contact Author)

SOA University ( email )

School of Management Siences
SOA University
BHUBANESWAR
India

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