Page 235 - DCOM507_STOCK_MARKET_OPERATIONS

Stock Market Operations

Notes 11.7 Review Questions

1. Write a note on the derivatives market in India.
2. Explain clearing and settlement in the case of derivatives.
3. What are the factors have been driving the growth of financial derivatives?
4. Explain briefly the characteristics of derivatives.
5. What are the criteria for derivatives trading?

6. Explain step-by-step development of derivatives markets in India.
7. Explain the development and regulation of derivative markets in India
8. What are the objectives of regulatory controls of derivatives market?
9. Define hedging.
10. What do you mean by portfolio rebalancing?
11. Write a note on derivative products.
12. Explain the futures in India.
13. Write the myths and realities about the derivatives markets in India.

Answers: Self Assessment

1. Derivatives 2. Currency
3. Hedging 4. Avoid, accept

5. Derivative market 6. True
7. False 8. Hedgers
9. Speculators 10. Arbitrageurs
11. False 12. True
13. False 14. True
15. True

11.8 Further Readings

Books Chitale, Rajendra P., 2003, Use of Derivatives by India’s Institutional Investors:
Issues and Impediments, in Susan Thomas (ed.), Derivatives Markets in India,
Tata McGraw-Hill Publishing Company Limited, New Delhi, India.

Fitch Ratings, 2004, Fixed Income Derivatives – A Survey of the Indian Market,

Online links www.fitchratings.com
husky1.stmarys.ca/~gye/derivativeshistory.pdf

www.financialpolicy.org/fpfspr8.pdf
www.yieldcurve.com/Mktresearch/.../Derivatives_Intro.pdf

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