Q.1 In India, the emergence and growth of derivatives market is relatively a recent phenomenon. Since...

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Q.1 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 contracts traded. The market turnover has grown from Rs.2365 Cr. in 2000-2001 to Rs. 26444804.86 Cr. in 2013-14 and still increasing. Within a short span of twelve years, derivatives trading in India has surpassed cash segment in terms of turnover and number of traded contracts. Discuss the features, market trend, future prospects and challenges of derivatives in India and status of Indian derivatives market vis-à-vis global derivative market. (10 marks) Q.1 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 contracts traded. The market turnover has grown from Rs.2365 Cr. in 2000-2001 to Rs. 26444804.86 Cr. in 2013-14 and still increasing. Within a short span of twelve years, derivatives trading in India has surpassed cash segment in terms of turnover and number of traded contracts. Discuss the features, market trend, future prospects and challenges of derivatives in India and status of Indian derivatives market vis-à-vis global derivative market. (10 marks)

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Derivatives are financial instruments whose value is derived from an underlying asset The derivatives market in India is relatively new having been es... View the full answer