FUTURE CONTRACTS – FUTURE OF FINANCIAL DERIVATIVES IN INDIA

Author (s) : Dr.P.Kalairani

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Abstract :
Derivatives have been around in the global market for a very long time. The evidence of characteristics of derivative contracts can even be found in the incidents that date back to the ages before Jesus Christ and in India in epic as old as Mahabharata. The first recorded instance of futures trading appears to have been occurred with Yodoya rice market in Osaka, Japan around 1650. Futures are one of the most popular derivative contracts in India as compared to traditional securities market. The stock exchanges in India have been in existence for more than a century now. Bombay Stock Exchange (BSE) is a stock exchange located in Mumbai, Maharashtra and was established in 1875. Subsequently, the National Stock Exchange (NSE) was set up in November 1992. The road for stock exchange traded derivatives contracts was cleared with the removal of prohibition of options on securities by way of amendment to Securities Laws through Securities Laws (Amendment) Ordinance, 1995. A Bill was introduced on October 28, 1999 and was converted into an Act on December 16, 1999 making way for derivatives trading in India. This study focus on the understanding the price movements and behaviours of futures market in India with special reference selected futures. The study also reveals the relationship among various future contracts of different companies.

Keywords : Future contracts, Financial Derivatives

Conference Date : 17/09/2021

Pages : 24

Paper ID : IESMDT23