- A REPORT
CSV-CUSTODY AND CLEARING
History and Development of Derivatives Market
Kinds of risks involved in Derivatives
Derivative Products and End Users
Pros and Cons of Derivatives
Derivative in India: A Chronology
L.C. Gupta Committee Report
J.R. Verma Committee Report
Forwards, Futures, Options & Swaps
Futures - A Procedure Note
A Futures Contract
Index Futures - Indian Scenario
SEBI guidelines for participation by FII's in trading in Futures
RBI guidelines for participation by FII's in trading in Futures
Traders in the Futures Market
Future Contract Specifications
Trading in Futures Contract
Various Entities Participating in the Derivatives Trading
How does an FII enter into a Futures Contract
Reporting to the Regulators
Derivatives, the word originates in mathematics and refers to a variable, which has been derived from another variable.
For example, a measure of weight in pound could be derived from a measure of weight in kilograms by multiplying by 2.2.
In the financial sense, a derivative is a financial product, which has been derived from a market for another product. Without the underlying product and market it would have no independent existence. Some one may take an interest in the derivative products without having an interest in the underlying product market, but the two are always related and may therefore interact with each other.
Derivatives can be derived from the many widely traded markets, which are commonly known such as sugar, oil or foreign currency. Derivative markets are made by the introduction of a new security having a specific relationship to the underlying cash or spot market.
The common derivative products are Forwards, Futures, Options and Swaps. Forwards is a simply contract to take delivery...