A SYNOPSIS ON STUDY OF CURRENT SCENARIO OF

DERIVATIVES MARKET IN INDIA

SUBMITTED TO
BANGALORE UNIVERSITY
In partial flfill!"nt #f t$" r"%ir"!"nt
F#r t$" a&ar' #f '"(r"" #f
Ma)t"r #f B)in")) A'!ini)trati#n
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MAS,UM ALI
R"(- N#- . /0ACCMA123
Un'"r t$" Gi'an4" #f
Mr- BALASUBRAMANNYA
FACULTY
Al-Ameen Institute of Management Studies
Hosur Road, Near Lalbag Main gate
!angalore " #$% %&'
THE TABLE OF CONTENTS
SL.NO CONTENTS PAGE NO.
2 INTRODUCTION 2
3 STATEMENT OF THE PROBLEM 3
4 OBJECTIVES OF THE STUDY 3
5 SCOPE OF THE STUDY 3
6 SAMPLING 3
7 METHODOLOGY 4
8 PLAN OF ANALYSIS 4
9 LIMITATION OF THE STUDY 45
!" BIBLIOGRAPHY 5
!! ANNE#URE
INTRODUCTION
BACKGROUND OF T,E STUDY

Te e(olution o))urred in stages* Te Ci)ago !oard of Trade
+C!,T-, .i) o/ened in 0121, is, to tis da3, te largest futures mar4et in te
.orld* Te general rules framed b3 C!,T in 01$# be)ame a /a)esetter for
man3 oter mar4ets* In 01'%, te Ne. Yor4 )otton e5)ange .as founded*

Te London metal e5)ange .as establised in 01'' and is no. te
leading mar4et in metal trading +bot s/ot and for.ard-* Tereafter man3 ne.
futures mar4et .ere started* Te first finan)ial futures mar4et .as te
international monetar3, founded in 06'& b3 te Ci)ago mer)antile e5)ange*
Te London international finan)ial futures e5)ange follo.ed tis in 061&*
As alread3 mentioned, some form of for.ard trading /robabl3 e5isted
in India also* Te first organi7ed for.ard mar4ets )ame into e5isten)e in India
in te late 06t and earl3 &%t )entur3 in Cal)utta +for 8ute and 8ute goods- and
Mumbai +for )otton-*
Cronologi)all3, India9s e5/erien)e in organi7ed for.ard trading is
almost as long as tat of te United :ingdom, and )ertainl3 longer tan man3
de(elo/ed nations* Ho.e(er, te tidal .a(e of /ri)e )ontrol, nationali7ation
and state inter(ention in mar4ets, .i) s.e/t troug all e)onomi) /oli)3
ma4ing after inde/enden)e, led to a ra/id de)line in number of futures mar4ets*
Fre;uentl3 mar4ets .ere )losed due to te feeling tat te3 .ere res/onsible
for sudden mo(ements of /ri)e in te )ommodities*
STATEMENT OF T,E PROBLEM5

<eri(ati(e is one of te ris4 minimi7es tool and also el/ in(estors to find
out te ris4 and as .ell as return* <eri(ati(e is a tool .i) )onsist of man3
oter sub tools ,te3 are as follo.s ,edging, s/e)ulation, arbitrage, and oter
li4es s.a/s, for.ard, future, and o/tion* All te abo(e tools are diffi)ult to
anal3se in detail*
OB6ECTIVES OF T,E STUDY
Te main ob8e)ti(es of te /ro8e)t are as follo.s= -
To stud3 te )urrent s)enario of deri(ati(es mar4et in India*
To anal37e .eter te /ur/ose for .i) deri(ati(es are used as
a)tuall3 been a)ie(ed*
To stud3 te )on)e/t of deri(ati(es and te /ur/ose for .i) finan)ial
institutions ado/t deri(ati(es*
To find te gro.t of deri(ati(es in India*
SCOPE OF T,E STUDY
<eri(ati(e deals .it e;uit3, deri(ati(es, mutual funds et) in tis .e are
find out .i) is te best and anal37e te )ustomer a.areness in
deri(ati(e mar4er and it also )o(ered te re)ent )anges in <eri(ati(e
Mar4et*
It gi(es te information about for.ard, future, o/tionand s.a/* It gi(es
more )on)entrate on o. Se)urities trade in <eri(ati(e Mar4et*
SAMPLING
T$% &'()*+,- .%/$,+01% 23**34%5 +& 6&+()*% 7',53( &'()*+,-8.
MET,ODOLOGY
Te >rimar3 as .ell as Se)ondar3 data is /ro/osed to be )olle)ted*
a7 Pri!ar+ Data5
>rimar3 data is te data .i) is )olle)ted b3 te resear)er dire)tl3
from is o.n obser(ations and e5/erien)e*
*7 S"4#n'ar+ Data=
For )olle)tion of se)ondar3 data te internet, referen)e boo4, resear)
re/orts, related arti)les et) */ro/osed to be used* Se)ondar3 data .ere
gatered from numerous sour)es* ?ile /re/aration of tis /ro8e)t
re/ort, te se)ondar3 data a(e been )olle)ted troug= <ata .as
generated from general librar3 resear) sour)es, te5tboo4s, trade
8ournals, arti)les from ne.s/a/er, treasur3 management, bro)ures,
inter(ie.s .it different bro4ers of !angalore sto)4 @5)ange and
Internet .eb site*
PLAN OF ANALYSIS
Te )olle)ted data as been )arefull3 )lassified, tabulated and inter/reted
on te basi) of .i) table )arts and gra/s are dra. from te tabulated
fre;uen)ies and te data sould be anal37ed* Te anal3sis of data el/ed in
<ra.ing inferen)es and better understanding, )arts are /lotted*
LIMITATION OF T,E STUDY
Te stud3 is )ondu)ted in !angalore onl3-
Sin)e te stud3 )o(ers te o(er(ie. of deri(ati(es mar4et, it )annot be
generali7ed*
Sare mar4et is so mu) (olatile and it is diffi)ult to fore)ast an3 ting
about it .eter 3ou trade troug online or offline*
<ata )olle)ted is onl3 from se)ondar3 sour)es*
BIBLIOGRAP,Y
>ri)ing deri(ati(es se)urities
-@//s*T*?
,/tions, futures, and oter deri(ati(es
-Aon )* Hull