Derivatives market, within a short span of its launch has managed to pick-up in terms of volume. Now that the start has emerged satisfactorily, the market participants are more concerned to clear away the tiny issues of convenience. With these, the segment would be all set for a take off.
The
Indian equity derivatives market provides an exciting
array of products like the Index Futures, Index
Options, Stock Futures and Stock Options. At this
point of time, the indices covered are the Sensex and
the Nifty, while 41 individual stocks are covered for
both Futures and Options. Stocks have been carefully
selected based on their market capitalization, trading
volume and impact cost. On a typical day, the notional
value of contracts traded is in the range of Rs. 3,000
cr of which around 60% comes from Stock Futures. The
volume could go up to Rs. 4,000 cr on a turbulent day.
Interestingly,
almost all of the volume comes from retail investors
and proprietory trades by brokers unlike the developed
world where institutions, mutual funds and hedge funds
provide the volume. Surprisingly, the mutual fund
industry, FIIs and FIs are still in the pondering
stage for various reasons including clarity over tax
regulations, delays in RBI pronouncements, internal
approvals, fear of derivative disasters and clarity
over understanding of what exactly is permitted and
what is not. |
