International Journal of Financial Management

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

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
     

   Subscribe/Renew Journal


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
Subscription Login to verify subscription
User
Notifications
Font Size

  • SEBI (2002).Development and Regulation of Derivative Market in India. SEBI advisory committee on derivatives, Sep. 2002.

  • Petzel, T.E. (1995). Derivatives Market & Regulatory Dynamics. The journal of corporation law.

  • Murty, G.R.K. (2002). Derivative Products: A Primer. Derivative market (1st ed.). The ICFAI University press.

  • Murty, G.R.K. (2002).Indian derivatives markets: Issues at stake. Derivative market (1st ed.), The ICFAI University press.

  • Somnathan, T.V. (1998). Regulatory framework of futures and derivatives trading. Derivatives (1st ed.), Tata McGraw-Hill.

  • Albrecht, W. P. (1995). Regulation of Exchange Traded & OTC Derivatives: the need for a comparative institutional approach. The journal of corporation law.

  • Dixon, R., & R.K., Bhandari (1997).Derivatives, risk & regulation: chaos or Confidence?”. International journal of bank marketing, 15/3, 91–98.

  • Macy, J. R. (1995). Derivative instrument: lesson for regulatory state. The journal of corporation law.

  • Culp, C., and Mackay, R.J (1997). Regulating derivatives: the current system and proposed changes. CATO Regulation.

  • Srivastava, S., Yadav S. S., and Jain, P. K. (2008). Derivative trading in Indian stock market brokers perception. IIMB Management Review, September.

  • Anand, M., and Kaushik, K.P.(2008).Management Motivations for Use of Foreign Currency Derivatives in India. IIMB Management Review, 20(3), pp. 324-339.

  • Guru, A., (2009). Indian Derivatives Market: Some Policy issues.NSE working paper. Retrieved Jan, 2009, from MITS .Website: http://www.nseindia.com/.

  • Jobst, A. A. (2008). The development of equity derivatives markets: An examination of current standards and challenges in emerging Asia. International journal of emerging markets, 3(2), pp.168-180.

  • Herz, R. (1993). Hedge accounting, derivatives, and synthetics: the FASB starts rethinking the rules. Journal of Corporate Accounting and Finance, 15(3), pp.323-335.

  • Jordan, J. L. (1995).Supervision Of Derivative Instruments. Journal of Financial Services Research, 9(3), pp.433-444.

  • Durbin M.,(2006).Derivatives in Nutshell. All about derivatives (1sted.).Tata Mc Graw-Hill.


Abstract Views: 227

PDF Views: 0




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

Abstract Views: 227  |  PDF Views: 0

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