“A Snapshot of Derivatives Instrument in Indian Securities Market”

Abstract

Derivatives are innovative financial instruments designed to suit an investor’s appetite for risk. These financial tools help to effectively transfer risk from those who wish to avoid it to those who wish to accept it. In India, the derivatives market has recorded an impressive CAGR of 34 per cent, in terms of annual turnover, in the last five years. India is one of the most successful developing countries in terms of a vibrant market for exchange-traded Derivatives. This reiterates the strength of modern developments in India’s securities markets.