A STUDY ON BEHOVIOUR OF INVESTORS IN

DERIVATIVES TRADING

PROJECT REPORT

Submitted by

S.JAYANTH

Register No: 088001803033

in partial fulfillment for the award of the degree

of

MASTER OF BUSINESS ADMINISTRATION

In

DEPARTEMENT OF MANAGEMENT STUDIES

SONA COLLEGE OF TECHNOLOGY

THIAGARAJAR POLYTHECHNIC COLLEGE ROAD

 SALEM – 636 005

MAY 2010

SONA COLLEGE OF TECHNOLOGY

THIAGARAJAR POLYTHECHNIC COLLEGE ROAD
SALEM – 636 005
Department of Management Studies

PROJECT WORK

PHASE II

May 2010

This is to certify that the project entitled

A STUDY ON BEHOVIOUR OF INVESTORS IN DERIVATIVES

TRADING

is the bonafide record of project work done by

S.JAYANTJH

Register No: 088001803033

of M.B.A (Master of Business Administration) during the year 2009-2010.

--------------------- ----------------------------------
Project Guide Head of the Department

Submitted for the Project Viva-Voce examination held on ---------------------

----------------------------- ----------------------------
Internal Examiner External Examiner

DECLARATION

I affirm that the project work titled A STUDY ON BEHAVIOUR INVESTORS IN DERIVATIVES

TRADING being submitted in partial fulfillment for the award of M.B.A (Master of Business

Administration) is the original work carried out by me. It has not formed the part of any other project work

submitted for award of any degree or diploma, either in this or any other University.

(Signature of the Candidate)

S.JAYANTH

Name of the Candidate

088001803033

Register Number

I certify that the declaration made above by the candidate is true

Signature of the Guide,

Mrs. L. SHANKARI, M.Com, M.Phil &MBA

SENIOR LECTURER
 TABLE OF CONTENTS

Chapter Title Page No.

List of Tables

List of Figures

List of Abbreviations

Introduction

1.1 About the study 1

I 1.2 Industrial Profile 14

1.3 Company Profile 17

1.4 Review of Literature 20

Main Theme of Project Work 23

2.1 Need for the study 23

2.2 Scope for study 23

II 2.3 Objectives 24

2.4 Limitations 24

2.5 Research Methodology 25

2.6 Analysis and Interpretation, Findings 27

III Suggestions and Conclusion 61-62

IV Scope for future research 63

Bibliography 64

Annexure 65
LIST OF TABLES
 TABLE
PARTICULARS Page No.
NUMBER
2.6.1.1 GENDER OF RESPONDENTS 28

2.6.1.2 RESPONDENTS AWARENESS TOWARDS DERIVATIVE SEGMENT 29

2.6.1.3 INVESTORS PREFERENCE TOWARDS DERIVATIVE SEGMENT 30

2.6.1.4 INVESTORS PREFERENCE TOWARDS DERIVATIVE PRODUCT 31

2.6.1.5 PARTICPANTS OF DERIVATIVE PRODUCT 32

2.6.1.6 INVESTORS PREFERENCE TOWARDS NUMBER OF CONTRACTS 33

INVESTORS ATTRACTIVE REASONS FOR INVESTING IN DERIVATIVE
2.6.1.7 SEGMENT
34

2.6.1.8 RISK MANAGEMENT OF DERIVATIVE USER 35

LEVEL OF AGREEABLENESS / DISAGREEABLENESS OF NON
2.6.1.9 DERIVATIVE USERS
36

2.6.1.10 GENDER OF THE RESPONDENTS TOWARDS USERS AND NON -USERS 37

2.6.1.11 AGE LEVEL OF THE RESPONDENTS 38

2.6.1.12 OCCUPATION OF THE RESPONDENTS 39

2.6.1.13 INCOME LEVEL OF THE RESPONDENTS 40

2.6.1.14 PERIOD OF INVESTMENT OFTHE RESPONDENTS 41

2.6.1.15 INCOME LEVEL AND PERCENTAGE OF INVESTMENT 42

2.6.1.16 PERCENTAGE OF INVESTMENT OF USERS AND NON USERS 43

2.6.1.17 DERIVATIVE PARTICIPANTS PREFERENCE TOWARDS ITS PRODUCTS 44

DERIVATIVE PARTICIPANTS PREFERENCE TOWARDS NUMBER OF
2.6.1.18 CONTRACTS
45

2.6.1.19 LEVEL OF PERCEPTION OF DERIVATIVE USERS TOWARDS GENDER 46

2.6.1.2.1 RANKING AMONG SECTORS FOR INVESTING 47

TABLE
PARTICULARS Page No.
NUMBER
2.6.1.2.2 RISK FACTORS FOR INVESTING IN DERIVATIVE MARKET 48

2.6.1.2.3 REASONS FOR NOT INVESTING IN DERIVATIVE MARKET 49

2.6.1.3.1 GENDER AND USERS TOWARDS DERIVATIVE MARKET 50

AWARENESS AND INTEREST TOWARDS INVESTING IN DERIVATIVE
2.6.1.3.2 MARKET
51

2.6.1.3.3 AGE LEVEL AND GENDER OF THE INVESTORS 52

 LIST OF FIGURES
Figure
Particulars Page no.
Number
2.6.1.1.1 GENDER OF RESPONDENTS 28

2.6.1.1.2 RESPONDENTS AWARENESS TOWARDS DERIVATIVE SEGMENT 29

2.6.1.1.3 INVESTORS PREFERENCE TOWARDS DERIVATIVE SEGMENT 30

2.6.1.1.4 INVESTORS PREFERENCE TOWARDS DERIVATIVE PRODUCT 31

2.6.1.1.5 PARTICPANTS OF DERIVATIVE PRODUCT 32

2.6.1.1.6 INVESTORS PREFERENCE TOWARDS NUMBER OF CONTRACTS 33

INVESTORS ATTRACTIVE REASONS FOR INVESTING IN DERIVATIVE
2.6.1.1.7 34
SEGMENT
2.6.1.1.8 RISK MANAGEMENT OF DERIVATIVE USER 35
LEVEL OF AGREEABLENESS / DISAGREEABLENESS OF NON
2.6.1.1.9 36
DERIVATIVE USERS
2.6.1.1.1
GENDER OF THE RESPONDENTS TOWARDS USERS AND NON -USERS 37
0
2.6.1.1.1
AGE LEVEL OF THE RESPONDENTS 38
1
2.6.1.1.1
OCCUPATION OF THE RESPONDENTS 39
2
2.6.1.1.1
INCOME LEVEL OF THE RESPONDENTS 40
3
2.6.1.1.1
PERIOD OF INVESTMENT OFTHE RESPONDENTS 41
4
2.6.1.1.1
INCOME LEVEL AND PERCENTAGE OF INVESTMENT 42
5
2.6.1.1.1
PERCENTAGE OF INVESTMENT OF USERS AND NON USERS 43
6
2.6.1.1.1
DERIVATIVE PARTICIPANTS PREFERENCE TOWARDS ITS PRODUCT 44
7
2.6.1.1.1 DERIVATIVE PARTICIPANTS PREFERENCE TOWARDS NUMBER OF
45
8 CONTRACTS
2.6.1.1.1
LEVEL OF PERCEPTION OF DERIVATIVE USERS TOWARDS GENDER 46
9