Issues and Regulations of Derivatives Market in India: An Overview

Due to the wave of globalization and liberalization sweeping across the world, the volume of international trade and business has increased. This has led to rapid and unpredictable variations in financial asset prices, interest rates and exchange rates. The importance of risk management has increased due to the highly uncertain business scenario. Derivatives provide an effective key to the problem of risk caused by uncertainty and volatility of the underlying asset. The present article encompasses in its scope, the issues and regulations of derivatives market in India. The study is descriptive and based on the information compiled from the various websites.