Professional Documents
Culture Documents
Submitted to
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CERTIFICATE
Date:
Place:
DECLARATION
MR.. __________________________________________________
Student
Date: 13/10/2012
Place: Nashik
ACKNOWLEDGEMENT
For any success, you require hard work and genuine efforts, but it is incomplete
without innumerable blessings, support, and sincere guidance.
I especially thank my Guide and Mentor Dr. Sunil Joshi for all the support,
motivation, and technical guidance he provided throughout the duration without
which my aim would have been incomplete.
I am indeed grateful to all professors and staff from Bhonsla Military College,
with whom I had the opportunity to interact. I am also thankful to Mrs.
Kochargaonkar (principal) and Mr. Sawant (Coordinator YCMOU MBA) as
without their cooperation and blessings, the work I had undertaken was not
possible at all.
I thank to all staff of the DMS group who interacted with me and provided all the
information necessary for the concluding work.
I am also very thankful to my family members and my friends who have been
extremely supportive throughout this journey.
EXECUTIVE SUMMARY
Financial markets are, by nature, extremely volatile and hence the risk factor
is major concern for financial agents. As uncertainty about future goes
down, volatility is expected to go down; however as mentioned earlier, the
response/ reaction time becomes shorter, volatility is expected to increase.
To reduce the risk, the concept of derivatives comes into picture. Last
decade was one of the eventful decades in the Indian markets. In India, the
emergence and growth of derivatives market is relatively a recent
phenomenon. Since its inception in June 2000, derivatives market has
exhibited exponential growth both in terms of volume and number of traded
contracts.
On one side, just a few derivatives disaster stories were enough to bring
entire business of derivatives under the limelight, make every one worry
about unknown risk associated with derivatives, and elevate derivatives into
mysterious ‘something’; while on the other side, there were people who
started understanding the derivatives and used the derivatives for hedging
and mitigating the risks while adding liquidity to the markets.
Chapter-1
INTRODUCATION 1
1.1 Objectives of the project.
1.2 Selection of the topic for the study.
1.3 Objectives of the study.
1.4 Research methodology.
1.5 Scope of the study.
1.6 Limitations of the project.
Chapter-2
PROFILE OF THE ORGANIZATION 7
2.1 Historical background of DMS.
2.2 Organizational flowchart of DMS.
2.3 Product and services offered by the organization.
Chapter-3
DERIVATIES IN INDIA AND RECENT DEVELOPMENT
MAINLY SINCE YEAR 2009 14
3.1 Approval for derivative trading.
3.2 Derivative market at NSE.
3.3 Major developments since year 2009.
3.4 Trading mechanism.
3.5 Membership criteria.
3.6 Turnover.
3.7 Clearing and settlement.
3.8 Definition.
3.9 Features.
3.10 Economic role of derivatives.
3.11 Basis of classification of derivatives.
3.12 Type of derivatives.
3.13 Derivative products.
3.13-1 Futures.
3.13-2 Options.
3.14 Associated risks with derivatives.
3.15 Advantages and disadvantages.
3.16 Participants in the derivatives markets.
Chapter-4
ANALYSIS AND INTERPRETATION OF THE DATA 46
4.1 Practical Illustrations:
4.2 Interpretation.
Chapter-5
CONCLUSION OF THE STUDY 59
Chapter-6
RECOMMENDATIONS AND SUGGESTIONS 61
6.1 Ten commandments of futures & options trading.
APPENDICES/ BIBLIOGRAPHY 64
WEBLIOGRAPHY….
list of graphs Page No
1. Long future 28
2. Short future 29
3. Long call 34
4. Long call 35
5. Short call 37
6. Long put 38
7. Short put 40
Organizational Flowchart 11
Table 1: Derivative in India: A Chronology 15
NSE Derivatives Segment Turnover (in cr.) 18