A

Project report
On
Derivatives Market
In partial fulfillment of the requirements of
the Summer Internship of
Post Graduate Diploma in Business Management
Through
Rizvi Academy of Management
under the guidance of
Prof. Tariq Sayyed
Submitted b
Ankit Guta
PGDBM
Batch! "#$#%"#$"
!"RT#$#!AT"
This is to certif that Mr. Ankit Guta a student of &i'(i Academ of Management) of
PGDBM III bearing &oll *o+, and speciali'ing in -inance has successfull completed the
project titled D"R#%AT#%"S MAR&"T under the guidance of Prof+ Tariq Saed in
partial fulfillment of the requirement of Post Graduate Diploma in Business Management b
&i'(i Academ of Management for the academic ear "#$# . "#$"+
///////////////
Prof+ Tariq Saed
Project Guide
/////////////// ///////////////
///////////////
Prof+ 0mar -arooq Dr+ 1alim 1han
Academic 2oordinator Director
Dr+ 1alim 1han

A!&'()*"DG"M"'T
I 3ould li4e to e5press m gratitude to3ards m project guide Prof. Tariq Sayyed
3ithout 3hose) continuous guidance and encouragement) this project 3ould not ha(e been
possible+
Also I 3ould li4e to than4 our director Dr. &a+im &,an 3ho has pro(ided the necessar
infrastructure and guidance in the course of the project+ Also I 3ould li4e to ta4e this
opportunit to than4 all the teaching as 3ell as non%teaching staff for their continuous help
and support+
"-"!.T#%" S.MMAR/0Deri(ati(es are an important class of financial instruments that
are central to toda6s financial and trade mar4ets+ The offer (arious tpes of ris4 protection
and allo3 inno(ati(e in(estment strategies+ Around "7 ears ago) the deri(ati(es mar4et 3as
small and domestic+ Since then it has gro3n impressi(el . around "8 percent per ear in the
last decade . into a si'eable and trul global mar4et 3ith about 987, trillion of notional
amount outstanding+ *o other class of financial instruments has e5perienced as much
inno(ation+ Product and technolog inno(ation together 3ith competition ha(e fuelled the
impressi(e gro3th that has created man ne3 jobs both at e5changes and intermediaries as
3ell as at related ser(ice pro(iders+
As global leaders dri(ing the mar4et6s de(elopment) :uropean deri(ati(es plaers
toda account for more than "# percent of the :uropean 3holesale financial ser(ices sector6s
re(enues and contribute #+8 percent to total :uropean GDP+ Gi(en the deri(ati(es mar4et6s
global nature) users can trade around the cloc4 and ma4e use of deri(ati(es that offer
e5posure to almost an ;underling< across all mar4ets and asset classes+ The deri(ati(es
mar4et is predominantl a professional 3holesale mar4et 3ith ban4s) in(estment firms)
insurance companies and corporate as its main participants+ There are t3o competing
segments in the deri(ati(es mar4et! the off%e5change or o(er%the%counter =OT2> segment
and the on%e5change segment+ Onl around $? percent of the notional amount outstanding is
traded on e5changes+
-rom a customer perspecti(e) on%e5change trading is appro5imatel eight times less
e5pensi(e than OT2 trading+ B and large) the deri(ati(es mar4et is safe and efficient+ &is4s
are particularl 3ell controlled in the e5change segment) 3here central counterparties
=22Ps> operate (er efficientl and mitigate the ris4s for all mar4et participants+
In this respect) deri(ati(es ha(e to be distinguished from e+g+ structured credit lin4ed
securit such as collaterali'ed debt obligations that triggered the financial crisis in "##,+ The
deri(ati(es mar4et has successfull de(eloped under an effecti(e regulator regime+ All
three prerequisites for a 3ell%functioning mar4et . safet) efficienc and inno(ation . are
fulfilled+ @hile there is no need for structural changes in the frame3or4 under 3hich OT2
plaers and e5changes operate toda) impro(ements are possible+ Particularl in the OT2
segment) increasing operating efficienc) mar4et transparenc and enhancing counterpart
ris4 mitigation 3ould help the global deri(ati(es mar4et to function e(en more effecti(el+
TA1*" ($ !('T"'TS
Sr. 'o. Toics Page 'o.
2 #ntroduction 2
2.2 A Study on derivatives 2
2.3 (45ectives of study 2
2.6 'eed of t,e study 3
2.7 Scoe of t,e study 3
2.8 *imitations of t,e study 6
3 Stock "9c,ange 7
3.2 Regu+ations of Stock "9c,ange 8
3.3 Securities and "9c,ange 1oard of #ndia 8
3.6 1om4ay Stock "9c,ange :
3.7 'ationa+ Stock "9c,ange ;
3.8 *ist of Stock "9c,anges <
6 Derivatives 22
6.2 Definition 23
6.3 Particiants in t,e Derivatives Market 23
6.6 $unctions of t,e Derivatives Market 26
6.7 Tyes of Derivatives 27
6.8 Derivatives #nstruments in #ndia 2:
6.: Derivatives Segment in 1S" = 'S" 2:
6.; !ontract Period 2;
6.> Sett+ement 2;
6.< Regu+ations for Derivatives Trading 2;
7 $utures 32
7.2 Stock #nde9 $utures 32
7.3 $utures Termino+ogy 33
7.6 Pay0off for $utures 37
8 (tions 3:
8.2 (tions Termino+ogy 3:
8.3 !a++ (tion 3>
8.6 Put (tion 3>
8.7 $actors Determining (tion %a+ue 3>
8.8 Difference 1et?een $utures = (tions 3<
8.: Advantages of (tion Trading 3<

&i'(i Academ of Management An4it
Gupta
2 #'TR(D.!T#('
2.2 A ST.D/ (' D"R#%AT#%"S@
The onl stoc4 e5changes operating in the $A
th
centur 3ere those of Bomba set up
in $B,7 and Ahmadabad set up in $BA8+ These 3ere organi'ed as (oluntar non%profit%
ma4ing association of bro4ers to regulate and protect their interests+ Before the control on
securities trading became a central subject under the constitution in $A7#) it 3as a state
subject and the Bomba securities contracts =control> Act of $A"7 used to regulate trading in
securities+ 0nder this Act) The Bomba stoc4 e5change 3as recogni'ed in $A", and
Ahmedabad in $AC,+
During the 3ar boom) a number of stoc4 e5changes 3ere organi'ed e(en in Bomba)
Ahmedabad and other centers) but the 3ere not recogni'ed+ Soon after it became a central
subject) central legislation 3as proposed and a committee headed b A+D+Gor3ala 3ent into
the bill for securities regulation+ On the basis of the committeeDs recommendations and
public discussion) the securities contracts =regulation> Act became la3 in $A7?+
2.3 (1A"!T#%"S ($ ST.D/@
$+ To stud (arious trends in deri(ati(e mar4et+
"+ 2omparison of the profitsElosses in cash mar4et and deri(ati(e mar4et+
C+ To stud in detail the role of the future and options+
8+ To stud the role of deri(ati(es in Indian financial mar4et+
2.6 '""D ($ TB" ST.D/
Deri(ati(es Mar4et Page
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Different in(estment a(enues are a(ailable in(estors+ Stoc4 mar4et also offers
good in(estment opportunities to the in(estor ali4e all in(estments) the also carr
certain ris4s+ The in(estor should compare the ris4 and e5pected ields after adjustment
off ta5 on (arious instruments 3hile tal4ing in(estment decision the in(estor ma see4
ad(ice from e5%part and consultanc include stoc4 bro4ers and analsts 3hile ma4ing
in(estment decisions+ The objecti(e here is to ma4e the in(estor a3are of the functioning
of the deri(ati(es+
Deri(ati(es act as a ris4 hedging tool for the in(estors+ The objecti(e if to help the
in(estor in selecting the appropriate deri(ates instrument to the attain ma5imum ris4 and
to construct the portfolio in such a manner to meet the in(estor should decide ho3 best to
reach the goals from the securities a(ailable+
To identit in(estor objecti(e constraints and performance) 3hich help formulate the
in(estment policG
The de(elop and impro(ement strategies in the 3ith in(estment polic formulated+ The
3ill help the selection of asset classes and securities in each class depending up on their
ris4 return attributes+
2.7 S!(P" ($ TB" ST.D/
The stud is limited to ;Deri(ati(es< 3ith special reference to futures and options in
the Indian conte5tH the stud is not based on the international perspecti(e of deri(ati(e
mar4ets+
The stud is limited to the analsis made for tpes of instruments of deri(ates each
strateg is anal'ed according to its ris4 and return characteristics and deri(ati(es
performance against the profit and policies of the compan+
Deri(ati(es Mar4et Page
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2.8 *#M#TAT#(' ($ TB" ST.D/
The subject of deri(ates if (ast it requires e5tensi(e stud and research to understand
the dept of the (arious instrument operating in the mar4et onl a recent plenomore+ But
(arious international e5amples ha(e also been added to ma4e the stud more comfortable+
There are (arious other factors also 3hich define the ris4 and return preferences of an
in(estor ho3e(er the stud 3as onl contained to3ards the ris4 ma5imi'ation and profit
ma5imi'ation objecti(e of the in(estor+
The deri(ati(e mar4et is a dnamic one premiums) contract rates stri4e price
fluctuate on demand and suppl basis+ Therefore data related to last fe3 trading months 3as
onl consider and interpreted+
3 ST(!& "-!BA'G"
IStoc4 e5change means anbod or indi(iduals 3hether incorporated or not)
constituted for the purpose of assisting) regulating or controlling the business of buing)
selling or dealing in securities+I
It is an association of member bro4ers for the purpose of self%regulation and
protecting the interests of its members+ It can operate onl if it is recogni'ed b the
Go(ernment under the securities contracts =regulation> Act) $A7?+ The recognition is granted
under section C of the Act b the central go(ernment) Ministr of -inance+
1/*A)S@
Besides the abo(e act) the securities contracts =regulation> rules 3ere also made in
$A7, to regulate certain matters of trading on the stoc4 e5changes+ There are also bla3s of
the e5changes) 3hich are concerned 3ith the follo3ing subjects+
OpeningEclosing of the stoc4 e5changes) timing of trading) regulation of blan4 transfers)
regulation of badla or carro(er business) control of the settlement and other acti(ities of the
stoc4 e5change) fi5ation of margins) fi5ation of mar4et prices or ma4ing up prices)
regulation of tara(ani business =jobbing>) etc+) regulation of bro4ers trading) bro4erage
Deri(ati(es Mar4et Page
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charges) trading rules on the e5change) arbitration and settlement of disputes) settlement and
clearing of the trading etc+
3.2 R"G.*AT#(' ($ ST(!& "-!BA'G"S@
The securities contracts =regulation> act is the basis for operations of the stoc4
e5changes in India+ *o e5change can operate legall 3ithout the go(ernment permission or
recognition+ Stoc4 e5changes are gi(en monopol in certain areas under section $A of the
abo(e Act to ensure that the control and regulation are facilitated+ &ecognition can be
granted to a stoc4 e5change pro(ided certain conditions are satisfied and the necessar
information is supplied to the go(ernment+ &ecognition can also be 3ithdra3n) if necessar+
@here there are no stoc4 e5changes) the go(ernment can license some of the bro4ers to
perform the functions of a stoc4 e5change in its absence+
3.3 S"!.R#T#"S A'D "-!BA'G" 1(ARD ($ #'D#ACS"1#D@
S:BI 3as set up as an autonomous regulator authorit b the Go(ernment of India
in $ABB I to protect the interests of in(estors in securities and to promote the de(elopment of)
and to regulate the securities mar4et and for matters connected there3ith or incidental
thereto+I It is empo3ered b t3o acts namel the S:BI Act) $AA" and the securities
contract=regulation>Act) $A7? to perform the function of protecting in(estorDs rights and
regulating the capital mar4ets+
3.6 1(M1A/ ST(!& "-!BA'G"
This stoc4 e5change) Mumbai) popularl 4no3n as IBS:I 3as established in $B,7 as I
The *ati(e share and stoc4 bro4ers associationI) as a (oluntar non%profit ma4ing
association+ It has an e(ol(ed o(er the ears into its present status as the premiere stoc4
e5change in the countr+ It ma be noted that the stoc4 e5changes the oldest one in Asia)
e(en older than the To4o Stoc4 e5change 3hich 3as founded in $B,B+
The e5change) 3hile pro(iding an efficient and transparent mar4et for trading in
securities) upholds the interests of the in(estors and ensures redressed of their grie(ances)
3hether against the companies or its o3n member bro4ers+ It also stri(es to educate and
enlighten the in(estors b ma4ing a(ailable necessar informati(e inputs and conducting
in(estor education programmes+
Deri(ati(es Mar4et Page
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A go(erning board comprising of A elected directors) " S:BI nominees) , public
representati(es and an e5ecuti(e director is the ape5 bod) 3hich decides the policies and
regulates the affairs of the e5change+ The :5ecuti(e director as the chief e5ecuti(e officer is
responsible for the da toda administration of the e5change+
1S" #'D#!"S@
In order to enable the mar4et participants) analsts etc+) to trac4 the (arious
ups and do3ns in the Indian stoc4 mar4et) the :5change has introduced in $AB? an equit
stoc4 inde5 called BS:%S:*S:J that subsequentl became the barometer of the moments of
the share prices in the Indian stoc4 mar4et+ It is a IMar4et capitali'ation%3eightedI inde5 of
C# component stoc4s representing a sample of large) 3ell%established and leading
companies+ The base ear of Sense5 is $A,B%,A+ The Sense5 is 3idel reported in both
domestic and international mar4ets through print as 3ell as electronic media+
Sense5 is calculated using a mar4et capitali'ation 3eighted method+ As per this
methodolog) the le(el of the inde5 reflects the total mar4et (alue of all C#%component
stoc4s from different industries related to particular base period+ The total mar4et (alue of a
compan is determined b multipling the price of its stoc4 b the number of shares
outstanding+ Statisticians call an inde5 of a set of combined (ariables =such as price and
number of shares> a composite Inde5+ An Inde5ed number is used to represent the results of
this calculation in order to ma4e the (alue easier to 3or4 3ith and trac4 o(er a time+ It is
much easier to graph a chart based on Inde5ed (alues than one based on actual (alues 3orld
o(er majorit of the 3ell%4no3n Indices are constructed using ;Mar4et capitali'ation
3eighted method I+
In practice) the dail calculation of S:*S:J is done b di(iding the aggregate
mar4et (alue of the C# companies in the Inde5 b a number called the Inde5 Di(isor+ The
Di(isor is the onl lin4 to the original base period (alue of the S:*S:J+ The Di(isor 4eeps
the Inde5 comparable o(er a period of time and if the reference point for the entire Inde5
maintenance adjustments+ S:*S:J is 3idel used to describe the mood in the Indian Stoc4
mar4ets+ Base ear a(erage is changed as per the formula
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'e? 4ase year average E (+d 4ase year averageFC'e? market %a+ueGo+d market va+ueD
3.7 'AT#('A* ST(!& "-!BA'G"
The *S: 3as incorporated in *o( $AA" 3ith an equit capital of &s+ "7 crs+ The
International securities consultanc =IS2> of Kong 1ong has helped in setting up *S:+ IS2
has prepared the detailed business plans and installation of hard3are and soft3are sstems+
The promotions for *S: 3ere financial institutions) insurances companies) ban4s and S:BI
capital mar4et ltd) Infrastructure leasing and financial ser(ices ltd and stoc4 holding
corporation ltd+
It has been set up to strengthen the mo(e to3ards professionali'ation of the capital
mar4et as 3ell as pro(ide nation3ide securities trading facilities to in(estors+
*S: is not an e5change in the traditional sense 3here bro4ers o3n and manage the
e5change+ A t3o tier administrati(e set up in(ol(ing a compan board and a go(erning
aboard of the e5change is en(isaged+
*S: is a national mar4et for shares PS0 bonds) debentures and go(ernment securities
since infrastructure and trading facilities are pro(ided+
'S" 0 '#$T/@
The *S: on April "") $AA? launched a ne3 equit Inde5+ The *S:%7#+ The ne3
Inde5 3hich replaces the e5isting *S:%$## Inde5 is e5pected to ser(e as an appropriate
Inde5 for the ne3 segment of futures and options+Nifty means *ational Inde5 for -ift
Stoc4s+
The *S:%7# comprises 7# companies that represent "# broad Industr groups 3ith an
aggregate mar4et capitali'ation of around &s+ $),#)### crs+ All companies included in the
Inde5 ha(e a mar4et capitali'ation in e5cess of &s 7## crs each and should ha(e traded for
B7L of trading das at an impact cost of less than $+7L+
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The base period for the inde5 is the close of prices on *o( C) $AA7) 3hich ma4es one
ear of completion of operation of *S:6s capital mar4et segment+ The base (alue of the
Inde5 has been set at $###+
'S" 0 M#D!AP #'D"-@
The *S: midcap Inde5 or the Munior *ift comprises 7# stoc4s that represents "$ board
Industr groups and 3ill pro(ide proper representation of the midcap segment of the Indian
capital Mar4et+ All stoc4s in the Inde5 should ha(e mar4et capitali'ation of greater than &s+
"## crs and should ha(e traded B7L of the trading das at an impact cost of less "+7L+
The base period for the inde5 is *o( 8) $AA?) 3hich signifies t3o ears for completion
of operations of the capital mar4et segment of the operations+ The base (alue of the Inde5
has been set at $###
At present) there are "8 stoc4 e5changes recogni'ed under the securities contract
=regulation> Act) $A7?+ The are
3.8 *#ST ($ ST(!& "-!BA'G"S R"!(G'#H"D .'D"R TB" S"!.R#T#"S
!('TRA!T CR"G.*AT#('D A!TI 2<8:
*AM: O- TK: STO21 :J2KA*G: N:A&
Bomba stoc4 e5change)
Ahmedabad share and stoc4 bro4ers association
2alcutta stoc4 e5change association Otd)
Delhi stoc4 e5change association Otd)
Madras stoc4 e5change association Otd)
Indoor stoc4 bro4ers association)
Bangalore stoc4 e5change)
Kderabad stoc4 e5change)
$B,7
$A7,
$A7,
$A7,
$A7,
$A7B
$A?C
Deri(ati(es Mar4et Page
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&i'(i Academ of Management An4it
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2ochin stoc4 e5change)
Pune stoc4 e5change Otd)
0+P stoc4 e5change association Otd)
Oudhiana stoc4 e5change association Otd)
Maipur stoc4 e5change Otd)
Gauhathi stoc4 e5change Otd)
Mangalore stoc4 e5change Otd)
Maghad stoc4 e5change Otd) Patna)
Bhubanes3ar stoc4 e5change association Otd)
O(er the counter e5change of India) Bomba)
Saurasthra 1utch stoc4 e5change Otd)
Psdodara stoc4 e5change Otd)
2oimbatore stoc4 e5change Otd)
The Meerut stoc4 e5change Otd)
*ational stoc4 e5change Otd)
Integrated stoc4 e5change)
$A8C
$A,B
$AB"
$AB"
$ABC
$ABC%B8
$AB8
$AB7
$AB?
$ABA
$ABA
$AA#
$AA$
$AA$
$AA$
$AA$)$AAA
6 D"R#%AT#%"S
M"A'#'G@
The emergence of the mar4et for deri(ati(e products) most notabl for3ards) futures
and options) can be traced bac4 to the 3illingness of ris4%a(erse economic agents to guard
themsel(es against uncertainties arising out of fluctuations in asset prices+ B their (er
nature) the financial mar4ets are mar4ed (er high degree of (olatilit+ Through the use of
deri(ati(e products) it is possible to partiall or full transfer price ris4s b loc4ing%in asset
Deri(ati(es Mar4et Page
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&i'(i Academ of Management An4it
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prices+ As instruments of ris4 management) these generall do not influence the fluctuations
in the underling asset prices+ Ko3e(er) b loc4ing%in asset prices) deri(ati(e products
minimi'e the impact of fluctuations in asset prices on the profitabilit and cash flo3
situation of ris4%a(erse in(estors+
Deri(ati(es are ris4 management instruments) 3hich deri(e their (alue from an
underling asset+ The underling asset can be bullion) inde5) share) bonds) currenc) interest
etc+ Annual turno(er of the deri(ati(es is increasing each ear from $AB? on3ards)
/ear Annua+ turnover
$AB? $8? millions
$AA" 87C millions
$AAB $C"A millions
"##" Q "##C it has reached to equi(alent stage of cash mar4et
Deri(ati(es are used b ban4s) securities firms) companies and in(estors to hedge
ris4s) to gain access to cheaper mone and to ma4e profits Deri(ati(es are li4el to gro3
e(en at a faster rate in future the are first of all cheaper to 3orld ha(e met the increasing
(olume of products tailored to the needs of particular customers) trading in deri(ati(es has
increased e(en in the o(er the counter mar4ets+ In Britain unit trusts allo3ed to in(est in
futures Q options +The capital adequac norms for ban4s in the :uropean :conomic
2ommunit demand less capital to hedge or speculate through deri(ati(es than to carr
underling assets+ Deri(ati(es are 3eighted lightl than other assets that appear on ban4
balance sheets+ The si'e of these off%balance sheet assets that include deri(ati(es is more
than se(en times as large as balance sheet items at some American ban4s causing concern to
regulators
6.2 D"$#'#T#('@
Deri(ati(e is a product 3hose (alue is deri(ed from the (alue of one or more basic
(ariables) called bases =underling asset) inde5) or reference rate>) in a contractual manner+
The underling asset can be equit) fore5) commodit or an other asset+
Deri(ati(es Mar4et Page
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&i'(i Academ of Management An4it
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In the Indian conte5t the Securities 2ontracts =&egulation> Act) $A7? =S2=&> A>
defines ;deri(ati(e< to include%
$+ A securit deri(ed from a debt instrument) share) and loan 3hether secured or unsecured)
ris4 instrument or contract for differences or an other form of securit+
"+ A contract) 3hich deri(es its (alue from the prices) or inde5 of prices) of underling
securities+
Deri(ati(es are the securities under the S2=&>A and hence the trading of deri(ati(es is
go(erned b the regulator frame3or4 under the S2=&>A+
6.3 PART#!#PA'TS #' TB" D"R#%AT#%"S MAR&"T
The follo3ing three broad categories of participants 3ho trade in the deri(ati(es mar4et!
$+ Kedgers
"+ Speculators and
C+ Arbitrageurs
Bedgers@
Kedgers face ris4 associated 3ith the price of an asset+ The use futures or options
mar4ets to reduce or eliminate this ris4+
Secu+ators@
Speculators 3ish to bet on future mo(ements in the price of an asset+ -utures
and Options contracts can gi(e them an e5tra le(erageH that is) the can increase both the
potential gains and potential losses in a speculati(e (enture+
Ar4itrageurs@
Arbitrageurs are in business to ta4e ad(antage of a discrepanc bet3een prices in t3o
different mar4ets+
-or e5ample) the see the futures price of an asset getting out of line 3ith the cash
priceH the 3ill ta4e offsetting positions in the t3o mar4ets to loc4 in a profit+
6.6 $.'!T#('S ($ TB" D"R#%AT#%"S MAR&"T@
The deri(ati(es mar4et performs a number of economic functions+ The are!
Deri(ati(es Mar4et Page
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&i'(i Academ of Management An4it
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$+ Prices in an organi'ed deri(ati(es mar4et reflect the perception of mar4et participants
about the future and lead the prices of underling to the percei(ed future le(el+
"+ Deri(ati(es) due to their inherent nature) are lin4ed to the underling cash mar4ets+ @ith
the introduction of deri(ati(es) the underling mar4et 3itnesses higher trading (olumes
because of participation b more plaers 3ho 3ould not other3ise participate for lac4 of
an arrangement to transfer ris4+
C+ Speculati(e trades shift to a more controlled en(ironment of deri(ati(es mar4et+ In the
absence of an organi'ed deri(ati(es mar4et) speculators trade in the underling cash
mar4ets+
8+ An important incidental benefit that flo3s from deri(ati(es trading is that it acts as a
catalst for ne3 entrepreneurial acti(it+
7+ Deri(ati(es mar4ets help increase sa(ings and in(estment in the long run+ Transfer of
ris4 enables mar4et participants to e5pand their (olume of acti(it+
6.7 T/P"S ($ D"R#%AT#%"S
The most commonl used deri(ati(es contracts are for3ards) futures and
options+ Kere (arious deri(ati(es contracts that ha(e come to be used are gi(en briefl!
$+ -or3ards
"+ -utures
C+ Options
8+ @arrants
7+ O:APS
?+ Bas4ets
,+ S3aps
B+ S3aptions
2. $or?ards@
A for3ard contract is customi'ed contract bet3een t3o entities) 3here
settlement ta4es place on a specific date in the future at toda6s pre%agreed price
3. $utures@
A futures contract is an agreement bet3een t3o parties to bu or sell an asset
at a certain time in the future at a certain price+ -utures contracts are special tpes of
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&i'(i Academ of Management An4it
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for3ard contracts in the sense that the former are standardi'ed e5change%traded
contracts+
6. (tions@
Options are of two types calls and puts
2alls gi(e the buer the right but not the obligation to bu a gi(en quantit
of the underling asset) at a gi(en price on or before gi(en future date+ Puts gi(e the
buer the right) but not the obligation to sell a gi(en quantit of the underling asset at a
gi(en price on or before a gi(en date+
7. )arrants@
Options generall ha(e t3o li(es of up to one ear) the majorit of options
traded on options e5changes ha(ing a minimum maturit of nine months+ Oonger%dated
options are called 3arrants and are generall traded o(er%the%counter+
8. *eas@
The acronm O:APS means Oong%term :quit Anticipation Securities+ These
are options ha(ing a maturit of up to three ears+
:. 1askets@
Bas4et options are options on portfolios of underling assets+ The underling
asset is usuall a mo(ing a(erage of a bas4et of assets+ :quit inde5 options are a form
of bas4et options+
;. S?as@
S3aps are pri(ate agreements bet3een t3o parties to e5change cash flo3s in
the future according to a prearranged formula+ The can be regarded as portfolios of
for3ard contracts+ The t3o commonl used s3aps are!
#nterest rate s?as! These entail s3apping onl the interest related cash flo3s
bet3een the parties in the same currenc+
!urrency s?as! These entail s3apping both principal and interest bet3een the
parties) 3ith the cash flo3s in one direction being in a different currenc than
those in the opposite direction+
>. S?ations@
S3aptions are options to bu or sell that 3ill become operati(e at the
e5pir of the options+ Thus a s3aption is an option on a for3ard s3ap+ &ather than ha(e
Deri(ati(es Mar4et Page
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calls and puts) the s3aptions mar4ets has recei(er s3aptions and paer s3aptions+ A
recei(er s3aption is an option to recei(e fi5ed and pa floating+ A paer s3aption is an
option to pa fi5ed and recei(e floating+
6.8 D"R#%AT#%"S #'STR.M"'TS #' #'D#A
The first deri(ati(e product to be introduced in the Indian securities mar4et is going to be
II*D:J -0T0&:SI+ In the 3orld) first inde5 futures 3ere traded in 0+S+ on 1ansas 2it
Board of Trade =12BT> on Palue Oine Arithmetic Inde5 =POAI> in $AB"+
Organi'ed e5changes began trading options on equities in $A,C) 3hereas e5change
traded debt options did not appear until $AB") on the other hand fi5ed income futures began
trading in $A,7) but equit related futures did not begin until $AB"+
6.: D"R#%AT#%"S S"GM"'T #' 1S" = 'S"
On Mune A)"### BS: Q *S: became the first e5changes in India to introduce trading in
e5change traded deri(ati(e product 3ith the launch of inde5 futures on sense and *ift
futures respecti(el+
Inde5 futures 3as follo3s b launch of inde5 options in Mune "##$) stoc4 options in Mul
"##$ and stoc4 futures in *o( "##$+Presentl stoc4 futures and options a(ailable on 8$ 3ell%
capitali'ed and acti(el traded scripts mandated b S:BI+
*ift is the underling asset of the Inde5 -utures at the -utures Q Options segment of
*S: 3ith a mar4et lot of "## and the BS: C# Sense5 is the underling stoc4 inde5 3ith the
mar4et lot of 7#+ This difference of mar4et lot arises due to a minimum specification of a
contract (alue of &s+ " la4hs b Securities :5change Board of India+ A contract (alue is
contracting Inde5 laid b its mar4et lot+ -or e+g+ If Sense5 is 8,C# then the contract (alue of
a futures Inde5 ha(ing Sense5 as underling asset 3ill Be 7# 5 8,C# R &s+ ")C?)7##+
Similarl if *ift is $8?"+,) its futures contract (alue 3ill be "## 5 $8?"+, R &s+") A")78#E%+
:(er transaction shall be in multiple of mar4et lot+ Thus) Inde5 futures at *S: shall be
traded in multiples of "## and at BS: in multiples of 7#
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6.; !('TRA!T P"R#(DS@
At an point of time there 3ill al3as be a(ailable near three months contract periods+
-or e+g+ in the month of Mune "##A one can enter into either Mune -utures contract or Mul
-utures contract or August -utures 2ontract+ The last Thursda of the month specified in the
contract shall be the final settlement date for that contract at both *S: as 3ell BS:+ Thus
Mune "A) Mul ", and August C$ shall be the last trading da or the final settlement date for
Mune -utures contract) Mul -utures 2ontract and August -utures 2ontract respecti(el+
@hen one futures contract gets e5pired) a ne3 futures contract 3ill get introduced
automaticall+ -or instance) on C#th Mune) Mune futures contract becomes in(alidated and a
September -utures 2ontract gets acti(ated+
6.> S"TT*"M"'T@
Settlement of all Deri(ati(es trades is in cash mode+ There is Dail as 3ell as
-inal Settlement+ Outstanding positions of a contract can remain open till the last Thursda
of that month+ As long as the position is open) the same 3ill be mar4ed to Mar4et at the
Dail Settlement Price) the difference 3ill be credited or debited accordingl and the
position shall be brought for3ard to the ne5t da at the dail settlement price+ An position
3hich remains open at the end of the final settlement da =i+e+) last Thursda> shall be closed
out b the :5change at the -inal Settlement Price 3hich 3ill be the closing spot (alue of the
underling =*ift or Sense5) or respecti(e stoc4s as the case ma be>+
6.< R"G.*AT#(' $(R D"R#%AT#%"S TRAD#'G@
S:BI set up a "8%member committee under 2hairmanship of Dr+O+2+ Gupta
to de(elop the appropriate regulator frame3or4 for deri(ati(es trading in India+ The
committee submitted its report in March $AAB+ On Ma $$) $AAB S:BI accepted the
recommendations of the committee and appro(ed the phased introduction of deri(ati(es
trading in India beginning 3ith stoc4 inde5 futures+ S:BI also appro(ed the ;suggesti(e be%
la3s< recommended b the committee for regulation and control of trading and settlement of
deri(ati(es contracts+
The pro(isions in the S2=&> A and the regulator frame3or4 de(eloped there
under go(ern trading in securities+ The amendment of the S2=&> A to include deri(ati(es
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3ithin the ambit of Ssecurities6 in the S2=&> A made trading in deri(ati(es possible 3ithin
the frame3or4 of the Act+
$+ An e5change fulfilling the eligibilit criteria as prescribed in the O 2 Gupta committee
report ma appl to S:BI for grant of recognition under Section 8 of the S2=&> a) $A7?
to start trading deri(ati(es+ The deri(ati(es e5changeEsegment should ha(e a separate
go(erning council and representation of trading E clearing members shall be limited to
ma5imum of 8#L of the total members of the go(erning council+ The e5change shall
regulate the sales practices of its members and 3ill obtain appro(al of S:BI before start
of trading in an deri(ati(e contract
"+ The e5change shall ha(e minimum 7# members+
C+ The members of an e5isting segment of the e5change 3ill not automaticall become the
members of deri(ati(e segment+ The members of the deri(ati(e segment need to fulfill
the eligibilit conditions as laid do3n b the O 2 Gupta committee+
8+ The clearing and settlement of deri(ati(es trades shall be through a S:BI appro(ed
clearing corporation E house+ 2learing corporation E houses compling 3ith the eligibilit
conditions as laid do3n b the committee ha(e to appl to S:BI for grant of appro(al+
7+ Deri(ati(e bro4ersEdealers and clearing members are required to see4 registration from
S:BI+
?+ The minimum contract (alue shall not be less than &s+ " Oa4h+ :5changes should also
submit details of the futures contract the propose to introduce+
,+ The trading members are required to ha(e qualified appro(ed user and sales person 3ho
ha(e passed a certification programme appro(ed b S:BI+
@hile from the purel regulator angle) a separate e5change for trading 3ould be a
better arrangement+ 2onsidering the constraints in infrastructure facilities) the e5isting stoc4
=cash> e5changes ma also be permitted to trade deri(ati(es subject to the follo3ing
conditions+
I+ Trading should ta4e place through an on%line screen based trading sstem+
II+ An independent clearing corporation should do the clearing of the deri(ati(e mar4et+
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&i'(i Academ of Management An4it
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III+ The e5change must ha(e an online sur(eillance capabilit) 3hich monitors positions)
price and (olumes in real time so as to deter mar4et manipulation price and position
limits should be used for impro(ing mar4et qualit+
IP+ Information about trades quantities) and quotes should be disseminated b the
e5change in the real time o(er at least t3o information%(ending net3or4s) 3hich are
accessible to in(estors in the countr+
P+ The e5change should ha(e at least 7# members to start deri(ati(es trading+
PI+ The deri(ati(es trading should be done in a separate segment 3ith separate
membershipH That is) all members of the cash mar4et 3ould not automaticall become
members of the deri(ati(es mar4et+
PII+ The deri(ati(es mar4et should ha(e a separate go(erning council 3hich should not
ha(e representation of trading b clearing members beond 3hate(er percentage S:BI
ma prescribe after re(ie3ing the 3or4ing of the present go(ernance sstem of
e5changes+
PIII+ The chairman of the go(erning council of the deri(ati(e di(ision E e5change should be
a member of the go(erning council+ If the chairman is bro4er E dealer) then he should
not carr on an bro4ing or dealing on an e5change during his tenure+
IJ+ *o tradingEclearing member should be allo3ed simultaneousl to be on the go(erning
council both deri(ati(es mar4et and cash mar4et+
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7. $.T.R"S
-utures contract is a firm legal commitment bet3een a buer Q seller in 3hich
the agree to e5change something at a specified price at the end of a designated period of
time+ The buer agrees to ta4e deli(er of something and the seller agrees to ma4e deli(er+
7.2 ST(!& #'D"- $.T.R"S
Stoc4 Inde5 futures are the most popular financial futures) 3hich ha(e
been used to hedge or manage the sstematic ris4 b the in(estors of Stoc4 Mar4et+ The are
called hedgers 3ho o3n portfolio of securities and are e5posed to the sstematic ris4+ Stoc4
Inde5 is the apt hedging asset since the rise or fall due to sstematic ris4 is accuratel sho3n
in the Stoc4 Inde5+ Stoc4 inde5 futures contract is an agreement to bu or sell a specified
amount of an underling stoc4 inde5 traded on a regulated futures e5change for a specified
price for settlement at a specified time future+
Stoc4 inde5 futures 3ill require lo3er capital adequac and margin
requirements as compared to margins on carr for3ard of indi(idual scrips+ The bro4erage
costs on inde5 futures 3ill be much lo3er+
Sa(ings in cost is possible through reduced bid%as4 spreads 3here stoc4s are
traded in pac4aged forms+ The impact cost 3ill be much lo3er in case of stoc4 inde5 futures
as opposed to dealing in indi(idual scrips+ The mar4et is conditioned to thin4 in terms of the
inde5 and therefore 3ould prefer to trade in stoc4 inde5 futures+ -urther) the chances of
manipulation are much lesser+
The Stoc4 inde5 futures are e5pected to be e5tremel liquid gi(en the
speculati(e nature of our mar4ets and the o(er3helming retail participation e5pected to be
fairl high+ In the near future) stoc4 inde5 futures 3ill definitel see incredible (olumes in
India+ It 3ill be a bloc4buster product and is pitched to become the most liquid contract in
the 3orld in terms of number of contracts traded if not in terms of notional (alue+ The
ad(antage to the equit or cash mar4et is in the fact that the 3ould become less (olatile as
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most of the speculati(e acti(it 3ould shift to stoc4 inde5 futures+ The stoc4 inde5 futures
mar4et should ideall ha(e more depth) (olumes and act as a stabili'ing factor for the cash
mar4et+ Ko3e(er) it is too earl to base an conclusions on the (olume or to form an firm
trend+
The difference bet3een stoc4 inde5 futures and most other financial
futures contracts is that settlement is made at the (alue of the inde5 at maturit of the
contract+
7.3 $.T.R"S T"RM#'(*(G/

!ontract Size
The (alue of the contract at a specific le(el of Inde5+ It is
Inde5 le(el T Multiplier+
Mu+ti+ier
It is a pre%determined (alue) used to arri(e at the contract si'e+ It
is the price per inde5 point+
Tick Size
It is the minimum price difference bet3een t3o quotes
of similar nature+
!ontract Mont,
The month in 3hich the contract 3ill e5pire+
"9iry Day
The last da on 3hich the contract is a(ailable for trading+
(en interest
Total outstanding long or short positions in the mar4et at an specific point
in time+ As total long positions for mar4et 3ould be equal to total short positions)
for calculation of open Interest) onl one side of the contracts is counted+
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%o+ume
*o+ Of contracts traded during a specific period of time+ During a da) during
a 3ee4 or during a month+
*ong osition
OutstandingEunsettled purchase position at an point of time+
S,ort osition
OutstandingE unsettled sales position at an point of time+
(en osition
OutstandingEunsettled long or short position at an point of time+
P,ysica+ de+ivery
Open position at the e5pir of the contract is settled through deli(er of the
underling+ In futures mar4et) deli(er is lo3+
!as, sett+ement
Open position at the e5pir of the contract is settled in cash+ These contracts
Alternati(e Deli(er Procedure =ADP> % Open position at the e5pir of the contract is
settled b t3o parties % one buer and one seller) at the terms other than defined b the
e5change+ @orld3ide a significant portion of the energ and energ related contracts
=crude oil) heating and gasoline oil> are settled through Alternati(e Deli(er Procedure+
7.6 Pay off for futures@
A Pa off is the li4el profitEloss that 3ould accrue to a mar4et participant 3ith
change in the price of the underling asset+ -utures contracts ha(e linear paoffs+ In simple
3ords) it means that the losses as 3ell as profits) for the buer and the seller of futures
contracts) are unlimited+
Pay off for 1uyer of futures@ C*ong futuresD
The pa offs for a person 3ho bus a futures contract is similar to the pa off
for a person 3ho holds an asset+ Ke has potentiall unlimited upside as 3ell as do3nside+
Ta4e the case of a speculator 3ho bus a t3o%month *ift inde5 futures contract 3hen
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the *ift stands at $""#+ The underling asset in this case is the *ift portfolio+ @hen
the inde5 mo(es up) the long futures position starts ma4ing profits and 3hen the inde5
mo(es do3n it starts ma4ing losses
Pay off for se++er of futures@ Cs,ort futuresD
The pa offs for a person 3ho sells a futures contract is similar to the pa off
for a person 3ho shorts an asset+ Ke has potentiall unlimited upside as 3ell as
do3nside+ Ta4e the case of a speculator 3ho sells a t3o%month *ift inde5 futures
contract 3hen the *ift stands at $""#+ The underling asset in this case is the *ift
portfolio+ @hen the inde5 mo(es do3n) the short futures position starts ma4ing profits
and 3hen the inde5 mo(es up it starts ma4ing losses+
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8.(PT#('S
An option agreement is a contract in 3hich the 3riter of the option grants the buer
of the option the right to purchase from or sell to the 3riter a designated instrument at a
specific price 3ithin a specified period of time+
2ertain options are shorterm in nature and are issued b in(estors another group of
options are long%term in nature and are issued b companies+
8.2 (PT#('S T"RM#'(*(G/@
!a++ otion@
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A call is an option contract gi(ing the buer the right to purchase the stoc4+
Put otion@
A put is an option contract gi(ing the buer the right to sell the stoc4+
"9iration date@
It is the date on 3hich the option contract e5pires+
Strike rice@
It is the price at 3hich the buer of a option contract can purchase or sell
the stoc4 during the life of the option
Premium@
Is the price the buer pas the 3riter for an option contract+
)riter@
The term 3riter is snonmous to the seller of the option contract+
Bo+der@
The term holder is snonmous to the buer of the option contract+
Stradd+e@
A straddle is combination of put and calls gi(ing the buer the right to either
bu or sell stoc4 at the e5ercise price+
Stri@
A strip is t3o puts and one call at the same period+
Stra@
A strap is t3o calls and one put at the same stri4e price for the same period+
Sread@
A spread consists of a put and a call option on the same securit for the same
time period at different e5ercise prices+
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The option holder 3ill e5ercise his option 3hen doing so pro(ides him a benefit
o(er buing or selling the underling asset from the mar4et at the pre(ailing price+ These are
three possibilities+
$+ #n t,e money@ An option is said to be in the mone 3hen it is
ad(antageous to e5ercise it+
"+ (ut of t,e money! The option is out of mone if it not ad(antageous to e5ercise it+
C+ At t,e money@ I- the option holder does not lose or gain 3hether he e5ercises his
option or bus or sells the asset from the mar4et) the option is said to be at the mone+ The
e5changes initiall created three e5piration ccles for all listed options and each issue 3as
assigned to one of these three ccles+
Manuar) April) Mul) October+
-ebruar) March) August) *o(ember+
March) Mune) September) and December+
In India) all the - and O contracts 3hether on indices or indi(idual stoc4s are
a(ailable for one or t3o or three months series and the e5pire on the Thursda of the
concerned month+
8.3 !A** (PT#('@
An option that grants the buer the right to purchase a designated instrument is
called a call option+ A call option is a contract that gi(es its o3ner the right) but not the
obligation) to bu a specified price on or before a specified date+ An American call option
can be e5ercised on or before the specified date onl+ :uropean options can be e5ercised on
the specified date onl+
8.6 P.T (PT#('@
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An option contract gi(ing the o3ner the right) but not the obligation) to sell a
specified amount of an underling securit at a specified price 3ithin a specified time+ This
is the opposite of a call option) 3hich gi(es the holder the right to bu shares+
A put becomes more (aluable as the price of the underling stoc4
depreciates relati(e to the stri4e price+ -or e5ample) if ou ha(e one Mar #A Taser $# put)
ou ha(e the right to sell $## shares of Taser at U$# until March "##B =usuall the third
-rida of the month>+ If shares of Taser fall to U7 and ou e5ercise the option) ou can
purchase $## shares of Taser for U7 in the mar4et and sell the shares to the optionDs 3riter for
U$# each) 3hich means ou ma4e U7## =$## 5 =U$#%U7>> on the put option+ *ote that the
ma5imum amount of potential profit in this e5ample ignores the premium paid to obtain the
put option+
8.7 $A!T(RS D"T"RM#'#G (PT#(' %A*."@
Stoc4 price
Stri4e price
Time to e5piration
Polatilit
&is4 free interest rate
Di(idend
8.8. D#$$"R"'!" 1"T)""' $.T.R"S = (PT#('@
$.T.R"S
$> Both the parties are obligated to perform+
"> @ith futures premium is paid b either part+
C> The parties to futures contracts must perform
at the settlement date onl+ The are not
(PT#('S
$> Onl the seller =3riter> is obligated to perform+
"> @ith options) the buer pas the seller a
premium+
C> The buer of an options contract can e5ercise
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&i'(i Academ of Management An4it
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obligated to perform before that date+
8> The holder of the contract is e5posed to the
entire spectrum of do3nside ris4 and had the
potential for all upside return+
7> In futures margins to be paid+ The are
appro5imate $7%"#L on the current stoc4
price+
an time prior to e5piration date+
8> The buer limits the do3nside ris4 to the option
premium but retain the upside potential+
7> In options premiums to be paid+ But the are
(er less as compared to the margins+
8.: Advantages of otion trading@
Risk management@ put option allo3 in(estors holding shares to hedge against a
possible fall in their (alue+ This can be considered similar to ta4ing out insurance
against a fall in the share price+
Time to decide! B ta4ing a call option the purchase price for the shares is loc4ed in+
This gi(es the call option holder until the :5pir da to decide 3hether or e5ercised
the option and bus the shares+ Oi4e3ise the ta4er of a put option has time to decide
3hether
or not to sell the shares+
Secu+ations! The ease of trading in and out of option position ma4es it possible to
trade options 3ith no intention of e(er e5ercising them+ If in(estor e5pects the
mar4et to rise) the ma decide to bu call options+ If e5pecting a fall) the ma
decide to bu put options+ :ither 3a the holder can sell the option prior to e5pir to
ta4e a profit or limit a loss+ Trading options has a lo3er cost than shares) as there is
no stamp dut paable unless and until options are e5ercised+
*everage! Oe(erage pro(ides the potential to ma4e a higher return from a smaller
initial outla than in(esting directl ho3e(er le(erage usuall in(ol(es more ris4s
than a direct in(estment in the underling share+ Trading in options can allo3
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&i'(i Academ of Management An4it
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in(estors to benefit from a change in the price of the share 3ithout ha(ing to pa of
the share+
8.; Summary of otions
!a++ otion 4uyer !a++ otion ?riter Cse++erD
Pas premium
&ight to e5ercise and bu the share
Profits from rising prices
Oimited losses) potentiall
unlimited gain
&ecei(es premium
Obligation to sell shares if e5ercised
Profits from falling prices or remaining
neutral
Potentiall unlimited losses) limited
gain
Put otion 4uyer Put otion ?riter Cse++erD
Pas premium
&ight to e5ercise and sell shares
Profits from falling prices
Oimited losses) potentiall
unlimited gain
&ecei(es premium
Obligation to bu shares if e5ercised
Profits from rising prices or remaining
neutral
Potentiall unlimited losses) limited
gain
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&i'(i Academ of Management An4it
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:. A1(.T SBAR"&BA'
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:.2 SBAR"&BA' S"R%#!"S@
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&i'(i Academ of Management An4it
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Internet%based Online Trading! Speed Trade
Share4han has one of the best state%of%art 3eb portals pro(iding fundamental and
statistical information across equit) mutual funds and IPOs+ Surfing can be done across
7)7## companies for in%depth information) details about more than $)7## mutual fund
schemes and IPO data+ Other mar4et related details such as board meetings) result
Deri(ati(es Mar4et Page
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&i'(i Academ of Management An4it
Gupta
announcements) -II transactions) buingEselling b mutual funds and much more can also be
accessed+
It pro(ides a complete life%ccle of in(estment solution in :quities) Deri(ati(es)
2ommodities) IPO) Mutual -unds) Depositor Ser(ices) Portfolio Management Ser(ices and
Insurance+ It also offers personali'ed 3ealth management ser(ices for Kigh *et 3orth
indi(iduals+
:.3 ('*#'" S"R%#!"S
The online trading account can be chosen as per trading habits and preferences) that
is the classic account for most in(estors and speed trade for acti(e da traders+ Share4han
also pro(ides a free soft3are called ;Trade tiger< to all its account holders+
The !+assic Account enables ou to trade online for in(esting in :quities and
Deri(ati(es on the *S: (ia share4han+comH it gi(es access to all the research content and
also comes 3ith a free Dial%n%Trade ser(ice enabling to bu shares using the telephone+
Its features are!
Streaming quotes =using the applet based sstem>
Multiple 3atch lists
Integrated Ban4ing) demat and digital contracts
Instant credit and transfer
&eal%time portfolio trac4ing 3ith price alerts and) of course) the assurance of secure
transactions
The Trade Tiger is a ne5t%generation online trading product that brings the po3er of
the bro4erDs terminal to our P2+ ItDs the perfect trading platform for acti(e da traders+ Its
features are!
A single platform for multiple e5change BS: Q *S: =2ash Q -QO>) M2J)
*2D:J) Mutual -unds) IPO6s
Multiple Mar4et @atch a(ailable on Single Screen
Deri(ati(es Mar4et Page
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&i'(i Academ of Management An4it
Gupta
Mu+ti+e !,arts 3ith Tic4 b Tic4 Intrada and :nd of Da 2harting po3ered 3ith
(arious Studies
Gra, Studies include A(erage) Band% Bollinger) 1no3 Sure Thing) MA2D) &SI)
etc
A+y studies such as Pertical) Kori'ontal) Trend) &etracement Q -ree lines
.ser can save ,is o?n defined screen as 3ell as graph template) that is) sa(ing the
laout for future use
.ser0defined a+ert settings on an input Stoc4 Price trigger
Too+s avai+a4+e to gauge market such as Tic4 Vuer) Tic4er) Mar4et Summar)
Action @atch) Option Premium 2alculator) Span 2alculator
S,ortcut key for $AST access to order placements Q reports
(n+ine fund transfer acti(ated 3ith $" Ban4s
Share4han pro(ides ou the facilit to trade in !ommodities through Share4han
2ommodities P(t+ Otd+ a 3holl o3ned subsidiar of its parent SS1I+ It trades on t3o
major commodit e5changes of the countr!
Multi 2ommodit :5change of India Otd) Mumbai =M2J> and
*ational 2ommodit and Deri(ati(e :5change) Mumbai =*2D:J>+
-or trading in an commodit) initial margin of around $#L on an commodit is to
be maintained+ Share4han has launched its o3n commodit deri(ati(es micro%site+ The site
is a(ailable through the Share4han home page 333+share4han+com+ Along 3ith the site
Share4han has launched se(eral commodit deri(ati(es products =both research and trading>
too+ The products ha(e been listed belo3!
2ommodities Bu''! a dail (ie3 on precious metals and agro commodities+
2ommodities Beat! a summar of the das trading acti(it+
Traders 2orner! 0nder commodit trading calls) there are t3o tpes of trading calls!
Deri(ati(es Mar4et Page
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&i'(i Academ of Management An4it
Gupta
&apid -ire! =short%term calls for $ da to 7 das updated dail>
Medium%term Plas! =medium%term calls for $ month to C months
updated 3ee4l or in bet3een if needed>
Share 4han Jclusi(e! the commodit research reports and analses =periodical>+
Mar4et Scan! the dail commodit mar4et data and statistics =end of da>+
All these products are both e%mailed as ne3sletters and published on the commodit
deri(ati(es site+
Deri(ati(es Mar4et Page
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&i'(i Academ of Management An4it
Gupta
;. 1#1*#(GRAPB/
???.r4i.org.in
???.se4i.gov.inGfaqG derivatives faq.,tm+
$inance.indiamart.comGmarketsGcommodityGderivatives.,tm+
$inancia+ Management 4y Prasanna !,andra
S.'. S,rid,ar C $inancia+ management D
Derivatives markets C#!$A#D
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