Page 22 - DCOM510_FINANCIAL_DERIVATIVES

Mahesh Kumar Sarva, Lovely Professional University
Unit 2: Derivatives Market in India

Unit 2: Derivatives Market in India Notes

CONTENTS
Objectives

Introduction
2.1 Indian Derivatives Market
2.1.1 Important Eligibility/Regulatory Conditions Specified by SEBI
2.2 Derivatives Market at NSE (including Turnover)
2.2.1 NEAT Trading System
2.2.2 Start of Derivative Trading (NSE)
2.2.3 Functioning of Derivative at NSE
2.2.4 Rules of Derivative Trading
2.3 BSE – Start of Derivative Trading
2.3.1 Functioning of Derivative at BSE
2.3.2 Comparison between NSE and BSE
2.4 NIFTY
2.5 SENSEX

2.5.1 Sensex Index
2.5.2 Trading in Sensex Futures
2.6 Application of Index
2.6.1 Index Derivatives
2.6.2 Index Funds
2.6.3 Exchange Traded Funds
2.7 Summary
2.8 Keywords
2.9 Review Questions
2.10 Further Readings

Objectives

After studying this unit, you should be able to:
Discuss about the Indian derivatives market;
Explain the derivatives market at NSE and BSE;
Discuss about the NIFTY and SENSEX;
Describe the application of index.

Introduction

In the previous unit, we dealt with the concept of derivatives. The unit also discussed about the
products, participants, functions and types of members to be included in derivation mechanism.
This unit will helps you to understand the derivatives market in India i.e. derivatives market at

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