Indian Equity Derivative Market

Abstract

Financial derivatives are used by a number of entities such as corporations, commercial banks, institutional investors and individuals to reduce risk or "lay off" various risks or for speculating purpose. Though financial derivative market in India is not a very old one, inspite of that the country has emerged as a large and active derivative market in the global scenario. National Stock Exchange (NSE) of India ranked after CME group and Eurex in the world in 2012. The findings of this study indicate the ever increasing demand of Indian financial derivative market in comparison to Indian cash market. It necessarily leads to the fact that the usages of financial derivatives as risk management tool is also increasing.