Professional Documents
Culture Documents
Introduction
The Ludhiana stock exchange limited was established in 1981, by sh. S.P. Oswal of Vardhman group and sh. B.M. Lal Munjal of hero group. Further, the exchange has 295 members out of which 162 are registered with NSE as sub-brokers and 121 with BSE as sub-brokers.
DERIVATIVES DEFINED
Securities Contract (Regulation) Act,1956 defines Derivative to include A security derived from debt instruments, shares, secured / unsecured loan, risk instruments or contracts for differences, or any other form of security. A contract that derives its value from the prices / index of prices of underlying securities.
EVENT
SEBI gave permission to NSE and BSE to do index futures trading. Trading of Nifty futures commenced at NSE. Trading of index option commenced at NSE. Trading of options on individual securities commenced at NSE.
2nd july,2001
9th novemeber,2001
Swaps
BENEFITS OF DERIVATIVES
RISK MANAGEMENT PRICE DISCOVERY OPERATIONAL ADVANTAGES MARKET EFFICIENCY EASE OF SPECULATION ECONOMIC FUNCTIONS
Objectives Of Study
To understand the Working of the Derivatives On NSE. To know the investors perception towards investment in derivative market.
RESARCH METHODOLOGY
Method of data collection: Collection of primary data using Questionnaires. The questionnaire was filled by around 50 people who were mainly from Ludhiana Region. It consist of people dealing in derivative market.
Most of investor purpose of investing in derivative market is to hedge their fund. People generally participate in derivative market as a investor or hedger. People generally prefer to take advice from news network before investing in derivative market.
LIMITATIONS OF STUDY
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