Study of Derivatives in India

EasyChair Preprint 12787

Abstract

Since 1991, due to liberalization of economic policy, the Indian economy has entered an era in which Indian companies cannot ignore global markets. Before the nineties, prices of many commodities, metals and other assets were controlled. Others, which were not controlled, were largely based on regulated prices of inputs. As such there was limited uncertainty, and hence, limited volatility of prices. But after 1991, starting the process of deregulation, prices of most commodities are decontrolled. It has also resulted in partly deregulating the exchange rates, removing t he t rade cont rols, reducing the interest rates, making major changes for the capital market entry of foreign inst itut ional investors, introducing market based pricing of government securities, etc. All t hese measures have increased t he volatility of prices of various g oods and services in India to producers and consumers alike. Further, market determined exchange rates and interest rates also created volatilit y and instability in portfolio values and securities prices. Hence, hedging activities through various derivatives emerged to different risks. This paper will study t he capital market in India with reference to Derivatives

Keyphrases: Derivatives, Option, future

@booklet{EasyChair:12787,
  author    = {Umang Jain},
  title     = {Study of Derivatives in India},
  howpublished = {EasyChair Preprint 12787},
  year      = {EasyChair, 2024}}