International Journal of Financial Management

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Views of Brokers on Derivatives Trading in India: Issues and Challenges


Affiliations
1 Assistant Professor at Maharaja Surajmal Institute, Janak Puri, New Delhi-10058
2 Professor and Dean, Faculty of Management Studies,Mody Institute of Technology and Science (Deemed University u/s 3 of the UGC Act, 1956), Lakshmangarh-332311, Rajasthan, India
     

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The purpose of the paper is to review the development of derivatives market in India and the regulatory framework for derivatives trading in India. It also highlights the views of brokers on derivative market. This study is based on the primary data. The data has been collected from brokers of NSE to highlight the issues faced by them in the market. The paper will be of value to those interested in evaluating a successful and sound trading environment of derivative products in Indian market. The finding shows that there are some challenges in Indian regulatory framework of derivative trading like accounting for derivatives, institutional participation, pricing and valuation of derivative securities, cross margining. This could be due to current volume of trade, variety of users and range of purposes for which they are being used.

Keywords

Regulation, Legislation, Derivative markets, Risks
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  • Views of Brokers on Derivatives Trading in India: Issues and Challenges

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Authors

Ruchika Gahlot
Assistant Professor at Maharaja Surajmal Institute, Janak Puri, New Delhi-10058
Saroj K. Datta
Professor and Dean, Faculty of Management Studies,Mody Institute of Technology and Science (Deemed University u/s 3 of the UGC Act, 1956), Lakshmangarh-332311, Rajasthan, India

Abstract


The purpose of the paper is to review the development of derivatives market in India and the regulatory framework for derivatives trading in India. It also highlights the views of brokers on derivative market. This study is based on the primary data. The data has been collected from brokers of NSE to highlight the issues faced by them in the market. The paper will be of value to those interested in evaluating a successful and sound trading environment of derivative products in Indian market. The finding shows that there are some challenges in Indian regulatory framework of derivative trading like accounting for derivatives, institutional participation, pricing and valuation of derivative securities, cross margining. This could be due to current volume of trade, variety of users and range of purposes for which they are being used.

Keywords


Regulation, Legislation, Derivative markets, Risks

References