Views of Brokers on Derivatives Trading in India: Issues and Challenges
Published: 2011
Author(s) Name: Ruchika Gahlot, Saroj K. Datta
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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.
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