corporate governnance of iifl

8/11/2019 corporate governnance of iifl

1/84

TABLE OF CONTENTS

S.No.

1.2.3.4.5.6.7.8.9.10.

1)

2)3)4)

i)ii)iii)iv)

5)11.12.

1)

2)i)

ii)3)4)5)

i)ii)iii)iv)

13.14.1)2)3)4)5)

TOPICS

Executive Summary .......

Company ro!i"e....................#ntro$uction ....................%ee$ o! t&e Stu$y.............................................................................'iteratura" (evie .............................................................................*+,ective o! t&e Stu$y......................................................................Scope o! t&e Stu$y...........................................................................(e-earc& et&o$o"o/y.....................................................................'imitation- o! Stu$y..........................................................................

ain opic- o! Stu$y#ntro$uction to erivative..............................................................

erivative e!ine$..........................................................................

ype- o! erivative- ar et.............................................................ype- o! erivative-.......................................................................or ar$ Contract-.......................................................................uture Contract-.........................................................................

*ption-........................................................................................S ap........................................................................................*t&er in$- o! erivative-..........................................................

i-tory o! erivative-..........................................................................#n$ian erivative ar et ............

%ee$ o! erivative- in #n$ia to$ay....... ..........................yt&- an$ rea"itie- a+out $erivative-....................

erivative- increa-e -pecu"ation an$ $o not -erve anyeconomic purpo-e.......................................................................#n$ian ar et i- not rea$y !or $erivative tra$in/...........................

Compari-on o! %e Sy-tem it& Exi-tin/ Sy-tem...........Exc&an/e tra$e$ v-. * C $erivative- mar et-.................................

actor- Contri+utin/ o &e ro t& *! erivative-...........................rice o"ati"ity..............................................................................."o+a"i-ation o! ar et-...............................................................ec&no"o/ica" $vance-................................................................

$vance- in inancia" &eorie-..........................................eve"opment o! erivative ar etin #n$ia.........

:eni!it- o! erivative-....................................(i- ana/ement.............................................................................rice i-covery...............................................................................

*perationa" $vanta/e-..................................................................ar et E!!iciency.............................................................................

Ea-y to Specu"ation..........................................................................

4

PAGENO.

06

1016171819202122

2324

2525262732333435383939

40414345474748494950

545454545555


2/84


3/84

EXECUTIVE SUMMARY

.

=it& over 25 mi""ion -&are&o"$er-> #n$ia &a- t&e t&ir$ "ar/e-t inve-tor +a-e in t&e

or"$ a!ter ?S an$ @apan. *ver 7500 companie- are "i-te$ on t&e #n$ian -toc

exc&an/e- ;more t&an t&e num+er o! companie- "i-te$ in $eve"ope$ mar et- o!

@apan> ? > ermany> rance> u-tra"ia> S itAer"an$> Cana$a an$ on/ on/.).

&e #n$ian capita" mar et i- -i/ni!icant in term- o! t&e $e/ree o! $eve"opment>

vo"ume o! tra$in/> tran-parency an$ it- tremen$ou- /ro t& potentia".

#n$iaB- mar et capita"iAation a- t&e &i/&e-t amon/ t&e emer/in/ mar et-. ota"

mar et capita"iAation o! &e :om+ay Stoc Exc&an/e ;:SE)> &ic&> a- on @u"y 31>1997> a- ?S 175 +i""ion &a- /ro n +y 37.5D percent every t e"ve mont&- an$

a- over ?S 834 +i""ion a- o! @anuary> 2007. :om+ay Stoc Exc&an/e- ;:SE)>

one o! t&e o"$e-t in t&e or"$> account- !or t&e "ar/e-t num+er o! "i-te$

companie- tran-actin/ t&eir -&are- on a nation i$e on"ine tra$in/ -y-tem. &e t o

ma,or exc&an/e- name"y t&e %ationa" Stoc Exc&an/e ;%SE) an$ t&e

:om+ay Stoc Exc&an/e ;:SE) ran e$ no. 3 < 5 in t&e or"$> ca"cu"ate$ +y t&e

num+er o! $ai"y tran-action- $one on t&e exc&an/e-.

&e ota" urnover o! #n$ian inancia" ar et- cro--e$ ?S 2256 +i""ion in 2006

n increa-e o! 82D !rom ?S 1237 +i""ion in 2004 in a -&ort -pan o! 2 year-

on"y. urnover in t&e Spot an$ erivative- -e/ment +ot& in %SE < :SE a-

&i/&er +y 45D into 2006 a- compare$ to 2005. =it& $ai"y avera/e vo"ume o! ?S

9.4 +i""ion> t&e Sen-ex &a- po-te$ exce""ent return- in t&e recent year-.

Currently the market cap of the Sensex as on July 4th !""# $as %s

4&.4 'akh Crore $(th a P)E of more than !".

erivative- tra$in/ in t&e -toc mar et &ave +een a -u+,ect o! ent&u-ia-m o!

re-earc& in t&e !ie"$ o! !inance t&e mo-t $e-ire$ in-trument- t&at a""o mar et

6


4/84

participant- to mana/e ri- in t&e mo$ern -ecuritie- tra$in/ are no n a-

$erivative-. &e $erivative- are $e!ine$ a- t&e !uture contract- &o-e va"ue

$epen$- upon t&e un$er"yin/ a--et-. #! $erivative- are intro$uce$ in t&e -toc

mar et> t&e un$er"yin/ a--et may +e anyt&in/ a- component o! -toc mar et "i e>

-toc price- or mar et in$ice-> intere-t rate-> etc. &e main "o/ic +e&in$

$erivative- tra$in/ i- t&at $erivative- re$uce t&e ri- +y provi$in/ an a$$itiona"

c&anne" to inve-t it& "o er tra$in/ co-t an$ it !aci"itate- t&e inve-tor- to exten$

t&eir -ett"ement t&rou/& t&e !uture contract-. #t provi$e- extra "i ui$ity in t&e -toc

mar et.

erivative- are a--et-> &ic& $erive t&eir va"ue- !rom an un$er"yin/ a--et. &e-e

un$er"yin/ a--et- are o! variou- cate/orie- "i eF Commo$itie- inc"u$in/ /rain-> co!!ee +ean-> etc.

F reciou- meta"- "i e /o"$ an$ -i"ver.

F orei/n exc&an/e rate.

F:on$- o! $i!!erent type-> inc"u$in/ me$ium to "on/ term ne/otia+"e $e+t

-ecuritie- i--ue$ +y /overnment-> companie-> etc.

F S&ort term $e+t -ecuritie- -uc& a- +i""-.

F *ver &e Counter ;* C) money mar et pro$uct- -uc& a- "oan- or $epo-it-.

F E uitie-

or examp"e> a $o""ar !or ar$ i- a $erivative contract> &ic& /ive- t&e +uyer a

ri/&t < an o+"i/ation to +uy $o""arat -ome !uture $ate. &e price- o! t&e

$erivative- are $riven +y t&e -pot price- o! t&e-e un$er"yin/ a--et-.

o ever> t&e mo-t important u-e o! $erivative- i- in tran-!errin/ mar et ri- >

ca""e$ *e+,(n, &ic& i- a protection a/ain-t "o--e- re-u"tin/ !rom un!ore-een

price or vo"ati"ity c&an/e-. &u-> $erivative- are a very important too" o! ri-

mana/ement.

7


5/84

&ere are variou- $erivative pro$uct- tra$e$. &ey areG

-. or ar$-

!. uture-

. *ption-

4. S ap-

/A 0or$ar+ Contract (s a transact(on (n $h(ch the 1uyer an+ the seller

a,ree

upon a +el(2ery of a spec(3c ual(ty an+ uant(ty of asset usually a

commo+(ty at

a spec(3e+ future +ate. The pr(ce may 1e a,ree+ on (n a+2ance or (n

future.5

/A 0uture contract (s a 3rm contractual a,reement 1et$een a 1uyer an+

seller

for a spec(3e+ as on a 3xe+ +ate (n future. The contract pr(ce $(ll 2ary

accor+(n,

to the market place 1ut (t (s 3xe+ $hen the tra+e (s ma+e. The contract

also has

a stan+ar+ spec(3cat(on so 1oth part(es kno$ exactly $hat (s 1e(n,

+one5.

/An Opt(ons contract confers the r(,ht 1ut not the o1l(,at(on to 1uy 6call

opt(on7

or sell 6put opt(on7 a spec(3e+ un+erly(n, (nstrument or asset at a

spec(3e+ pr(ce

8 the Str(ke or Exerc(se+ pr(ce up unt(l or an spec(3e+ future +ate 8 theExp(ry +ate. The Pr(ce (s calle+ Prem(um an+ (s pa(+ 1y 1uyer of the

opt(on to the seller or $r(ter of the opt(on.5

call opt(on /ive- t&e &o"$er t&e ri/&t to +uy an un$er"yin/ a--et +y a certain

$ate !or a certain price. &e -e""er i- un$er an o+"i/ation to !u"!i"" t&e contract an$

i- pai$ a price o! t&i-> &ic& i- ca""e$ Ht&e ca"" option premium or ca"" option

priceH.

put opt(on > on t&e ot&er &an$ /ive- t&e &o"$er t&e ri/&t to -e"" an un$er"yin/


6/84


7/84

/S$aps are tran-action- &ic& o+"i/ate- t&e t o partie- to t&e contract to

exc&an/e a -erie- o! ca-& !"o - at -peci!ie$ interva"- no n a- payment or

-ett"ement $ate-. &ey can +e re/ar$e$ a- port!o"io- o! !or ar$I- contract-.

contract &ere+y t o partie- a/ree to exc&an/e ;- ap) payment-> +a-e$ on

-ome notiona" princip"e amount i- ca""e$ a- a JS= B. #n ca-e o! - ap> on"y t&e

payment !"o - are exc&an/e$ an$ not t&e princip"e amountK

I ha+ con+ucte+ th(s research to 3n+ out $hether (n2est(n, (n

the +er(2at(2e market (s 1ene3c(al or not9 :ou $(ll 1e ,la+ to

kno$ that +er(2at(2e market (n In+(a (s the most 1oom(n, no$ +ays.

So the person $ho (s rea+y to take r(sk an+ $ant to ,a(n more

shoul+ (n2est (n the +er(2at(2e market.On the other han+ %;I has to play an (mportant role (n +er(2at(2e

market.

Also SE;I must encoura,e (n2estment (n +er(2at(2e market so that

the

(n2estors ,et the 1ene3t out of (t. Sorry to say that to+ay e2en

e+ucate+

persons are not $(ll(n, to (n2est (n +er(2at(2e market 1ecause they ha2e

the

fear of h(,h r(sk.

So SE;I shoul+ take necessary steps for (mpro2ement (n


8/84

9


9/84

INTRODUCTION

erivative i- a !inancia" in-trument &o-e va"ue $epen$- on ot&er> more+a-ic> un$er"yin/ varia+"e-. &e varia+"e- un$er"yin/ cou"$ +e price- o! tra$e$

-ecuritie- an$ -toc > price- o! /o"$ or copper.

erivative- &ave +ecome increa-in/"y important in t&e !ie"$ o! !inance>

*ption- an$ uture- are tra$e$ active"y on many exc&an/e-> or ar$

contract-> S ap an$ $i!!erent type- o! option- are re/u"ar"y tra$e$ out-i$e

exc&an/e- +y !inancia" intuition-> +an - an$ t&eir corporate c"ient- in &at

are terme$ a- over t&e counter mar etin ot&er or$-> t&ere i- no -in/"e

mar et p"ace or or/aniAe$ exc&an/e-.

16


10/84

NEED OF THE STUDY

&e -tu$y &a- +een $one to no t&e $i!!erent type- o! $erivative- an$ a"-o

to no t&e $erivative mar et in #n$ia. &i- -tu$y a"-o cover- t&e recent

$eve"opment- in t&e $erivative mar et ta in/ into account t&e tra$in/ in pa-t

year-.

&rou/& t&i- -tu$y # came to no t&e tra$in/ $one in $erivative- an$ t&eir u-e in t&e -toc mar et-.

17


11/84

LITERATURE REVIEW

&e emer/ence o! t&e mar et !or $erivative pro$uct-> mo-t nota+"y !or ar$->

!uture- an$ option-> can +e trace$ +ac to t&e i""in/ne-- o! ri- aver-eeconomic a/ent- to /uar$ t&em-e"ve- a/ain-t uncertaintie- ari-in/ out o!

!"uctuation- in a--et price-. :y t&eir very nature> t&e !inancia" mar et- are

mar e$ +y a very &i/& $e/ree o! vo"ati"ity. &rou/& t&e u-e o! $erivative

pro$uct-> it i- po--i+"e to partia""y or !u""y tran-!er price ri- - +y "oc in/ in a--et

price-. - in-trument- o! ri- mana/ement> t&e-e /enera""y $o not in!"uence t&e

!"uctuation- in t&e un$er"yin/ a--et price-. o ever> +y "oc in/ in a--et price->

$erivative pro$uct- minimiAe t&e impact o! !"uctuation- in a--et price- on t&epro!ita+i"ity an$ ca-& !"o -ituation o! ri- aver-e inve-tor-.

erivative pro$uct- initia""y emer/e$> a- &e$/in/ $evice- a/ain-t !"uctuation- in

commo$ity price- an$ commo$ity "in e$ $erivative- remaine$ t&e -o"e !orm o!

-uc& pro$uct- !or a"mo-t t&ree &un$re$ year-. &e !inancia" $erivative- came

into -pot"i/&t in po-t 1970 perio$ $ue to /ro in/ in-ta+i"ity in t&e !inancia"

mar et-. o ever> -ince t&eir emer/ence> t&e-e pro$uct- &ave +ecome very

popu"ar an$ +y 1990-> t&ey accounte$ !or a+out t o t&ir$- o! tota" tran-action- in

$erivative pro$uct-. #n recent year-> t&e mar et !or !inancia" $erivative- &a-

/ro n tremen$ou-"y +ot& in term- o! variety o! in-trument- avai"a+"e> t&eir

comp"exity an$ a"-o turnover. #n t&e c"a-- o! e uity $erivative-> !uture- an$

option- on -toc in$ice- &ave /aine$ more popu"arity t&an on in$ivi$ua" -toc ->

e-pecia""y amon/ in-titutiona" inve-tor-> &o are ma,or u-er- o! in$ex "in e$

$erivative-.

Even -ma"" inve-tor- !in$ t&e-e u-e!u" $ue to &i/& corre"ation o! t&e popu"ar

in$ice- it& variou- port!o"io- an$ ea-e o! u-e. &e "o er co-t- a--ociate$ it&in$ex $erivative- vi- vi- $erivative pro$uct- +a-e$ on in$ivi$ua" -ecuritie- i-

anot&er rea-on !or t&eir /ro in/ u-e.

- in t&e pre-ent -cenario> erivative ra$in/ i- !a-t /ainin/ momentum> #

&ave c&o-en t&i- topic.

18


12/84


13/84

SCOPE OF THE PROJECT

&e pro,ect cover- t&e $erivative- mar et an$ itin-trument-. or +etter

un$er-tan$in/ variou- -trate/ie- it& $i!!erent -ituation- an$ action- &ave

+een /iven. #t inc"u$e- t&e $ata co""ecte$ in t&e recent year- an$ a"-o t&e

mar et in t&e $erivative- in t&e recent year-. &i- -tu$y exten$- to t&e tra$in/ o!

$erivative- $one in t&e %ationa" Stoc ar et-.

20


14/84

RESARCH METHODOLOGY

Method of data o!!e t"o#$%

Se o#da&' (o)& e($%

#t i- t&e $ata &ic& &a- a"rea$y +een co""ecte$ +y -ome one or an

or/aniAation !or -ome ot&er purpo-e or re-earc& -tu$y . &e $ata !or -tu$y &a-

+een co""ecte$ !rom variou- -ource-L

:oo -

@ourna"-

a/aAine- #nternet -ource-

Stat"(t" a! Too!( U(ed$

Simp"e too"- "i e +ar /rap&-> ta+u"ation> "ine $ia/ram- &ave +een u-e$.

21


15/84

LIMITAITONS OF STUDY

*+ LIMITED TIME$

&e time avai"a+"e to con$uct t&e -tu$y a- on"y 2 mont&-. #t +ein/ a i$e

topic &a$ a "imite$ time.

,+ LIMITED RESOURCES$

'imite$ re-ource- are avai"a+"e to co""ect t&e in!ormation a+out t&e

commo$ity tra$in/.

. VOLATALITY$

S&are mar et i- -o muc& vo"ati"e an$ it i- $i!!icu"t to !oreca-t any t&in/ a+out it&et&er you tra$e t&rou/& on"ine or o!!"ine

-+ ASPECTS COVERAGE$

Some o! t&e a-pect- may not +e covere$ in my -tu$y.

22


16/84

*+ INTRODUCTION TO DERIVATIVE

&e ori/in o! $erivative- can +e trace$ +ac to t&e nee$ o! !armer- to protect

t&em-e"ve- a/ain-t !"uctuation- in t&e price o! t&eir crop. rom t&e time it a-

-o n to t&e time it a- rea$y !or &arve-t> !armer- ou"$ !ace price uncertainty.&rou/& t&e u-e o! -imp"e $erivative pro$uct-> it a- po--i+"e !or t&e !armer to

partia""y or !u""y tran-!er price ri- - +y "oc in/ in a--et price-. &e-e ere -imp"e

contract- $eve"ope$ to meet t&e nee$- o! !armer- an$ ere +a-ica""y a mean- o!

re$ucin/ ri- .

!armer &o -o e$ &i- crop in @une !ace$ uncertainty over t&e price &e

ou"$ receive !or &i- &arve-t in Septem+er. #n year- o! -carcity> &e ou"$

pro+a+"y o+tain attractive price-. o ever> $urin/ time- o! over-upp"y> &e ou"$

&ave to $i-po-e o!! &i- &arve-t at a very "o price. C"ear"y t&i- meant t&at t&e

!armer an$ &i- !ami"y ere expo-e$ to a &i/& ri- o! price uncertainty.

*n t&e ot&er &an$> a merc&ant it& an on/oin/ re uirement o! /rain- too

ou"$ !ace a price ri- t&at o! &avin/ to pay exor+itant price- $urin/ $eart&>

a"t&ou/& !avoura+"e price- cou"$ +e o+taine$ $urin/ perio$- o! over-upp"y.

?n$er -uc& circum-tance-> it c"ear"y ma$e -en-e !or t&e !armer an$ t&e

merc&ant to come to/et&er an$ enter into contract &ere+y t&e price o! t&e /rain

to +e $e"ivere$ in Septem+er cou"$ +e $eci$e$ ear"ier. =&at t&ey ou"$ t&en

ne/otiate &appene$ to +e !uture- type contract> &ic& ou"$ ena+"e +ot& partie-

to e"iminate t&e price ri- .

#n 1848> t&e C&ica/o :oar$ *! ra$e> or C:* > a- e-ta+"i-&e$ to +rin/

!armer- an$ merc&ant- to/et&er. /roup o! tra$er- /ot to/et&er an$ create$ t&eJto arriveB contract t&at permitte$ !armer- to "oc into price up!ront an$ $e"iver t&e

/rain "ater. &e-e to arrive contract- prove$ u-e!u" a- a $evice !or &e$/in/ an$

23


17/84

-pecu"ation on price c&ar/e-. &e-e ere eventua""y -tan$ar$iAe$> an$ in 1925 t&e

!ir-t !uture- c"earin/ &ou-e came into exi-tence.

o$ay $erivative- contract- exi-t on variety o! commo$itie- -uc& a- corn>

pepper> cotton> &eat> -i"ver etc. :e-i$e- commo$itie-> $erivative- contract- a"-o

exi-t on a "ot o! !inancia" un$er"yin/ "i e -toc -> intere-t rate> exc&an/e rate> etc.

,+ DERIVATIVE DEFINED

$erivative i- a pro$uct &o-e va"ue i- $erive$ !rom t&e va"ue o! one or more

un$er"yin/ varia+"e- or a--etin a contractua" manner. &e un$er"yin/ a--et can +e

e uity> !orex> commo$ity or any ot&er a--et. #n our ear"ier $i-cu--ion> e -a t&at

&eat !armer- may i-& to -e"" t&eir &arve-t at a !uture $ate to e"iminate t&e ri- o!

c&an/e in price +y t&at $ate. Suc& a tran-action i- an examp"e o! a $erivative.

&e price o! t&i- $erivative i- $riven +y t&e -pot price o! &eat &ic& i- t&e

Mun$er"yin/K in t&i- ca-e.

&e or ar$- Contract- ;(e/u"ation) ct> 1952> re/u"ate- t&e

!or ar$N!uture- contract- in commo$itie- a"" over #n$ia. - per t&i- t&e or ar$

ar et- Commi--ion ; C) continue- to &ave ,uri-$iction over commo$ity

!uture- contract-. o ever &en $erivative- tra$in/ in -ecuritie- a- intro$uce$ in2001> t&e term M-ecurityK in t&e Securitie- Contract- ;(e/u"ation) ct> 1956

;SC( )> a- amen$e$ to inc"u$e $erivative contract- in -ecuritie-.

Con-e uent"y> re/u"ation o! $erivative- came un$er t&e purvie o! Securitie-

Exc&an/e :oar$ o! #n$ia ;SE:#). =e t&u- &ave -eparate re/u"atory aut&oritie- !or

-ecuritie- an$ commo$ity $erivative mar et-.

erivative- are -ecuritie- un$er t&e SC( an$ &ence t&e tra$in/ o!

$erivative- i- /overne$ +y t&e re/u"atory !rame or un$er t&e SC( . &e

Securitie- Contract- ;(e/u"ation) ct> 1956 $e!ine- M$erivativeK to inc"u$e

-ecurity $erive$ !rom a $e+t in-trument> -&are> "oan &et&er -ecure$ or

un-ecure$> ri- in-trument or contract $i!!erence- or any ot&er !orm o! -ecurity.

contract &ic& $erive- it- va"ue !rom t&e price-> or in$ex o! price-> o!

un$er"yin/ -ecuritie-.

24


18/84

.+ TYPES OF DERIVATIVES MAR/ET

Exc&an/e ra$e$ erivative- *ver &e Counter erivative-

%ationa" Stoc :om+ay Stoc %ationa" Commo$ity

inancia" - ap- con-titute a !un$in/ tec&ni ue &ic& permit a +orro er toacce-- one mar et an$ t&en exc&an/e t&e "ia+i"ity !or anot&er type o! "ia+i"ity. #ta"-o a""o - t&e inve-tor- to exc&an/e one type o! a--et !or anot&er type o! a--et

it& a pre!erre$ income -tream.

33


28/84


29/84

**+ HISTORY OF DERIVATIVES$

&e &i-tory o! $erivative- i- uite co"our!u" an$ -urpri-in/"y a "ot "on/er t&an mo-t

peop"e t&in . or ar$ $e"ivery contract-> -tatin/ &at i- to +e $e"ivere$ !or a!ixe$ price at a -peci!ie$ p"ace on a -peci!ie$ $ate> exi-te$ in ancient reece an$

(ome. (oman emperor- entere$ !or ar$ contract- to provi$e t&e ma--e- it&

t&eir -upp"y o! E/yptian /rain. &e-e contract- ere a"-o un$erta en +et een

!armer- an$ merc&ant- to e"iminate ri- ari-in/ out o! uncertain !uture price- o!

/rain-. &u-> !or ar$ contract- &ave exi-te$ !or centurie- !or &e$/in/ price ri- .

&e !ir-t or/aniAe$ commo$ity exc&an/e came into exi-tence

in t&e ear"y 1700B- in @apan. &e !ir-t !orma" commo$itie- exc&an/e> t&e C&ica/o

:oar$ o! ra$e ;C:* )> a- !orme$ in 1848 in t&e ?S to $ea" it& t&e pro+"em

o! Jcre$it ri- B an$ to provi$e centra"i-e$ "ocation to ne/otiate !or ar$ contract-.

rom J!or ar$B tra$in/ in commo$itie- emer/e$ t&e commo$ity J!uture-B. &e !ir-t

type o! !uture- contract a- ca""e$ Jto arrive atB. ra$in/ in !uture- +e/an on t&e

C:* in t&e 1860B-. #n 1865> C:* "i-te$ t&e !ir-t Jexc&an/e tra$e$B $erivative-

contract> no n a- t&e !uture- contract-. uture- tra$in/ /re out o! t&e nee$ !or

&e$/in/ t&e price ri- invo"ve$ in many commercia" operation-. &e C&ica/o

ercanti"e Exc&an/e ;C E)> a -pin o!! o! C:* > a- !orme$ in 1919> t&ou/& it$i$ exi-t +e!ore in 1874 un$er t&e name- o! JC&ica/o ro$uce Exc&an/eB ;C E)

an$ JC&ica/o E// an$ :utter :oar$B ;CE::). &e !ir-t !inancia" !uture- to emer/e

ere t&e currency in 1972 in t&e ?S. &e !ir-t !orei/n currency !uture- ere

tra$e$ on ay 16> 1972> on #nternationa" onetary ar et ;# )> a $ivi-ion o!

C E. &e currency !uture- tra$e$ on t&e # are t&e :riti-& oun$> t&e

Cana$ian o""ar> t&e @apane-e Ren> t&e S i-- ranc> t&e erman ar > t&e

u-tra"ian o""ar> an$ t&e Euro $o""ar. Currency !uture- ere !o""o e$ -oon +y

intere-t rate !uture-. #ntere-t rate !uture- contract- ere tra$e$ !or t&e !ir-t time

on t&e C:* on *cto+er 20> 1975. Stoc in$ex !uture- an$ option- emer/e$ in

1982. &e !ir-t -toc in$ex !uture- contract- ere tra$e$ on an-a- City :oar$ o!

ra$e on e+ruary 24> 1982. &e !ir-t o! t&e -evera" net or -> &ic& o!!ere$ a

35


30/84

tra$in/ "in +et een t o exc&an/e-> a- !orme$ +et een t&e Sin/apore

#nternationa" onetary Exc&an/e ;S# E ) an$ t&e C E on Septem+er 7> 1984.

*ption- are a- o"$ a- !uture-. &eir &i-tory a"-o $ate- +ac to ancient reece

an$ (ome. *ption- are very popu"ar it& -pecu"ator- in t&e tu"ip craAe o!

-eventeent& century o""an$. u"ip-> t&e +ri/&t"y co"oure$ !"o er-> ere a -ym+o" o!

a!!"uenceG o in/ to a &i/& $eman$> tu"ip +u"+ price- -&ot up. utc& /ro er- an$

$ea"er- tra$e$ in tu"ip +u"+ option-. &ere a- -o muc& -pecu"ation t&at peop"e

even mort/a/e$ t&eir &ome- an$ +u-ine--e-. &e-e -pecu"ator- ere ipe$ out

&en t&e tu"ip craAe co""ap-e$ in 1637 a- t&ere a- no mec&ani-m to /uarantee

t&e per!ormance o! t&e option term-.

&e !ir-t ca"" an$ put option- ere invente$ +y an merican!inancier> (u--e"" Sa/e> in 1872. &e-e option- ere tra$e$ over t&e counter.

/ricu"tura" commo$itie- option- ere tra$e$ in t&e nineteent& century in

En/"an$ an$ t&e ?S. *ption- on -&are- ere avai"a+"e in t&e ?S on t&e over t&e

counter ;* C) mar et on"y unti" 1973 it&out muc& no "e$/e o! va"uation.

/roup o! !irm- no n a- ut an$ Ca"" +ro er- an$ ea"erB- --ociation a- -et

up in ear"y 1900B- to provi$e a mec&ani-m !or +rin/in/ +uyer- an$ -e""er-

to/et&er.

*n pri" 26> 1973> t&e C&ica/o :oar$ option- Exc&an/e

;C:*E) a- -et up at C:* !or t&e purpo-e o! tra$in/ -toc option-. #t a- in

1973 a/ain t&at +"ac > erton> an$ Sc&o"e- invente$ t&e !amou- :"ac Sc&o"e-

*ption ormu"a. &i- mo$e" &e"pe$ in a--e--in/ t&e !air price o! an option &ic&

"e$ to an increa-e$ intere-t in tra$in/ o! option-. =it& t&e option- mar et-

+ecomin/ increa-in/"y popu"ar> t&e merican Stoc Exc&an/e ; E ) an$ t&e

&i"a$e"p&ia Stoc Exc&an/e ; ' ) +e/an tra$in/ in option- in 1975.

&e mar et !or !uture- an$ option- /re at a rapi$ pace in t&e ei/&tie- an$

ninetie-. &e co""ap-e o! t&e :retton =oo$- re/ime o! !ixe$ partie- an$ t&e

intro$uction o! !"oatin/ rate- !or currencie- in t&e internationa" !inancia" mar et-

36


31/84

pave$ t&e ay !or $eve"opment o! a num+er o! !inancia" $erivative- &ic& -erve$ a-

e!!ective ri- mana/ement too"- to cope it& mar et uncertaintie-.

&e C:* an$ t&e C E are t o "ar/e-t !inancia" exc&an/e- in t&e or"$ on

&ic& !uture- contract- are tra$e$. &e C:* no o!!er- 48 !uture- an$ option

contract- ; it& t&e annua" vo"ume at more t&an 211 mi""ion in 2001). &e C:*E i- t&e

"ar/e-t exc&an/e !or tra$in/ -toc option-. &e C:*E tra$e- option- on t&e S t&e %a-$a 100> an$ t&e %i ei 225. &e ?S in$ice- an$ t&e

%i ei 225 tra$e a"mo-t roun$ t&e c"oc . &e %225 i- a"-o tra$e$ on t&e C&ica/oercanti"e Exc&an/e.

37


32/84

*,+ INDIAN DERIVATIVES MAR/ET

Startin/ !rom a contro""e$ economy> #n$ia &a- move$ to ar$- a or"$ &ere

price- !"uctuate every $ay. &e intro$uction o! ri- mana/ement in-trument- in

#n$ia /aine$ momentum in t&e "a-t !e year- $ue to "i+era"i-ation proce-- an$(e-erve :an o! #n$iaB- ;(:#) e!!ort- in creatin/ currency !or ar$ mar et.

erivative- are an inte/ra" part o! "i+era"i-ation proce-- to mana/e ri- . %SE

/au/in/ t&e mar et re uirement- initiate$ t&e proce-- o! -ettin/ up $erivative

mar etin #n$ia. #n @u"y 1999> $erivative- tra$in/ commence$ in #n$ia

Ta1le !. C rono!o"# o$ instru%ents199114 ecem+er 199518 %ovem+er 1996

11 ay 19987 @u"y 1999

24 ay 2000

25 ay 2000

9 @une 200012 @une 200025 Septem+er

20002 @une 2001

'i+era"i-ation proce-- initiate$%SE a- e$ SE:# !or permi--ion to tra$e in$ex !uture-.SE:# -etup '.C. upta Committee to $ra!t a po"icy

!rame or !or in$ex !uture-.'.C. upta Committee -u+mitte$ report.(:# /ave permi--ion !or * C !or ar$ rate a/reement-

; ( -) an$ intere-t rate - ap-.S# E c&o-e %i!ty !or tra$in/ !uture- an$ option- on an

#n$ian in$ex.SE:# /ave permi--ion to %SE an$ :SE to $o in$ex

!uture- tra$in/.ra$in/ o! :SE Sen-ex !uture- commence$ at :SE.ra$in/ o! %i!ty !uture- commence$ at %SE.

%i!ty !uture- tra$in/ commence$ at S .

#n$ivi$ua" Stoc *ption- < erivative-

4*5 Need fo& de&"2at"2e( "# I#d"a toda'

#n "e-- t&an t&ree $eca$e- o! t&eir comin/ into vo/ue> $erivative- mar et- &ave

+ecome t&e mo-t important mar etin t&e or"$. o$ay> $erivative- &ave

+ecome part an$ parce" o! t&e $ay to $ay "i!e !or or$inary peop"e in ma,or part o!

38


33/84

t&e or"$.

?nti" t&e a$vent o! %SE> t&e #n$ian capita" mar et &a$ no acce-- to t&e "ate-t

tra$in/ met&o$- an$ a- u-in/ tra$itiona" out $ate$ met&o$- o! tra$in/. &ere

a- a &u/e /ap +et een t&e inve-tor-B a-piration- o! t&e mar et- an$ t&e

avai"a+"e mean- o! tra$in/. &e openin/ o! #n$ian economy &a- precipitate$ t&e

proce-- o! inte/ration o! #n$iaB- !inancia" mar et- it& t&e internationa" !inancia"

mar et-. #ntro$uction o! ri- mana/ement in-trument- in #n$ia &a- /aine$

momentum in "a-t !e year- t&an - to (e-erve :an o! #n$iaB- e!!ort- in a""o in/

!or ar$ contract-> cro-- currency option- etc. &ic& &ave $eve"ope$ into a very

"ar/e mar et.

4,5 M'th( a#d &ea!"t"e( a9o)t de&"2at"2e(

#n "e-- t&an t&ree $eca$e- o! t&eir comin/ into vo/ue> $erivative- mar et- &ave

+ecome t&e mo-t important mar etin t&e or"$. inancia" $erivative- came into

t&e -pot"i/&t a"on/ it& t&e ri-e in uncertainty o! po-t 1970> &en ?S announce$

an en$ to t&e :retton =oo$- Sy-tem o! !ixe$ exc&an/e rate- "ea$in/ to

intro$uction o! currency $erivative- !o""o e$ +y ot&er innovation- inc"u$in/ -toc

in$ex !uture-. o$ay> $erivative- &ave +ecome part an$ parce" o! t&e $ay to $ay

"i!e !or or$inary peop"e in ma,or part- o! t&e or"$. =&i"e t&i- i- true !or many

countrie-> t&ere are -ti"" appre&en-ion- a+out t&e intro$uction o! $erivative-.&ere are many myt&- a+out $erivative- +ut t&e rea"itie- t&at are $i!!erent

e-pecia""y !or Exc&an/e tra$e$ $erivative-> &ic& are e"" re/u"ate$ it& a"" t&e

-a!ety mec&ani-m- in p"ace.

=&at are t&e-e myt&- +e&in$ $erivative-T erivative- increa-e -pecu"ation an$ $o not -erve any economic purpo-e #n$ian ar et i- not rea$y !or $erivative tra$in/

i-a-ter- prove t&at $erivative- are very ri- y an$ &i/&"y "evera/e$

in-trument-. erivative- are comp"ex an$ exotic in-trument- t&at #n$ian inve-tor- i""

!in$ $i!!icu"ty in un$er-tan$in/ #- t&e exi-tin/ capita" mar et -a!er t&an erivative-T

39


34/84

4"5 De&"2at"2e( "# &ea(e (1e )!at"o# a#d do #ot (e&2e a#'

e o#o7" 1)&1o(e$

%umerou- -tu$ie- o! $erivative- activity &ave "e$ to a +roa$ con-en-u-> +ot& in

t&e private an$ pu+"ic -ector- t&at $erivative- provi$e numerou- an$ -u+-tantia"+ene!it- to t&e u-er-. erivative- are a "o co-t> e!!ective met&o$ !or u-er- to

&e$/e an$ mana/e t&eir expo-ure- to intere-t rate-> commo$ity price- or

exc&an/e rate-. &e nee$ !or $erivative- a- &e$/in/ too" a- !e"t !ir-t in t&e

commo$itie- mar et. /ricu"tura" !uture- an$ option- &e"pe$ !armer- an$

proce--or- &e$/e a/ain-t commo$ity price ri- . !ter t&e !a""out o! :retton oo$

a/reement> t&e !inancia" mar etin t&e or"$ -tarte$ un$er/oin/ ra$ica"

c&an/e-. &i- perio$ i- mar e$ +y remar a+"e innovation- in t&e !inancia"

mar et- -uc& a- intro$uction o! !"oatin/ rate- !or t&e currencie-> increa-e$

tra$in/ in variety o! $erivative- in-trument-> on "ine tra$in/ in t&e capita" mar et->

etc. - t&e comp"exity o! in-trument- increa-e$ many !o"$-> t&e accompanyin/

ri- !actor- /re in /i/antic proportion-. &i- -ituation "e$ to $eve"opment

$erivative- a- e!!ective ri- mana/ement too"- !or t&e mar et participant-.

'oo in/ at t&e e uity mar et> $erivative- a""o corporation- an$ in-titutiona"

inve-tor- to e!!ective"y mana/e t&eir port!o"io- o! a--et- an$ "ia+i"itie- t&rou/&

in-trument- "i e -toc in$ex !uture- an$ option-. n e uity !un$> !or examp"e> can

re$uce it- expo-ure to t&e -toc mar et uic "y an$ at a re"ative"y "o co-t

it&out -e""in/ o!! part o! it- e uity a--et- +y u-in/ -toc in$ex !uture- or in$ex

option-.

:y provi$in/ inve-tor- an$ i--uer- it& a i$er array o! too"- !or

mana/in/ ri- - an$ rai-in/ capita"> $erivative- improve t&e a""ocation o! cre$it

an$ t&e -&arin/ o! ri- in t&e /"o+a" economy> "o erin/ t&e co-t o! capita"

!ormation an$ -timu"atin/ economic /ro t&. %o t&at or"$ mar et- !or tra$e an$

!inance &ave +ecome more inte/rate$> $erivative- &ave -tren/t&ene$ t&e-e

important "in a/e- +et een /"o+a" mar et-> increa-in/ mar et "i ui$ity an$

40


35/84

e!!iciency an$ !aci"itatin/ t&e !"o o! tra$e an$ !inance

4""5 I#d"a# Ma&3et "( #ot &ead' fo& de&"2at"2e t&ad"#0

*!ten t&e ar/ument put !ort& a/ain-t $erivative- tra$in/ i- t&at t&e #n$ian

capita" mar et i- not rea$y !or $erivative- tra$in/. ere> e "oo into t&e pre

re ui-ite-> &ic& are nee$e$ !or t&e intro$uction o! $erivative-> an$ &o #n$ian

mar et !are-L

TA;'E .

(E (EU?#S# ES'ar/e mar etCapita"i-ation

i/& 'i ui$ity in t&eun$er"yin/

ra$e /uarantee

Stron/ epo-itory

oo$ "e/a" /uar$ian

#% # % SCE% (#*#n$ia i- one o! t&e "ar/e-t mar et capita"i-e$countrie- in -ia it& a mar et capita"i-ation o!

more t&an (-.765000 crore-.&e $ai"y avera/e tra$e$ vo"ume in #n$ian capita"

mar et to$ay i- aroun$ 7500 crore-. =&ic& mean- onan avera/e every mont& 14D o! t&e countryB-

ar et capita"i-ation /et- tra$e$. &e-e are c"ear in$icator- o! &i/& "i ui$ity in t&e un$er"yin/.

&e !ir-t c"earin/ corporation /uaranteein/ tra$e-&a- +ecome !u""y !unctiona" !rom @u"y 1996 in t&e!orm o! %ationa" Securitie- C"earin/ Corporation

;%SCC'). %SCC' i- re-pon-i+"e !or /uaranteein/ a""open po-ition- on t&e %ationa" Stoc Exc&an/e;%SE) !or &ic& it $oe- t&e c"earin/.

%ationa" Securitie- epo-itorie- 'imite$ ;%S ')&ic& -tarte$ !unctionin/ in t&e year 1997 &a-

revo"utiona"i-e$ t&e -ecurity -ett"ement in ourcountry.

#n t&e #n-titution o! SE:# ;Securitie- an$ Exc&an/e:oar$ o! #n$ia) to$ay t&e #n$ian capita" mar et

en,oy- a -tron/> in$epen$ent> an$ innovative "e/a"/uar$ian &o i- &e"pin/ t&e mar et to evo"ve to a&ea"t&ier p"ace !or tra$e practice-.

4.5 Co71a&"(o# of Ne: S'(te7 :"th E;"(t"#0 S'(te7

any peop"e an$ +ro erin #n$ia t&in t&at t&e ne -y-tem o! uture- < *ption-

an$ +annin/ o! :a$"a i- $i-a$vanta/eou- an$ intro$uce$ ear"y> +ut # !ee" t&at t&i-

41


36/84

ne -y-tem i- very u-e!u" e-pecia""y to retai" inve-tor-. #t increa-e- t&e no o!

option- inve-tor- !or inve-tment. #n !act it -&ou"$ &ave +een intro$uce$ muc&

+e!ore an$ %SE &a$ approve$ it +ut a- not active +ecau-e o! po"iticiAation in

SE:#.

&e !i/ure 3.3a 3.3$ -&o - &o a$vanta/e- o! ne -y-tem ;imp"emente$ !rom

@une 20001) vN- t&e o"$ -y-tem i.e. +e!ore @une 2001

%e Sy-tem - Exi-tin/ Sy-tem !or ar et "ayer-

0(,ure . a

Specu"ator-

Exi-tin/

Approach1) e"iver +a-e$

ra$in/> mar/intra$in/ < carry!or ar$ tran-action-.

2) :uy #n$ex uture-&o"$ ti"" expiry.

SRS0E. %e)

Per(l Pr(Be Approach Per(l Pr(Be1) :ot& pro!it < 1):uy


37/84


38/84


39/84

-+ E; ha#0e%t&aded 2(+ OTC de&"2at"2e( 7a&3et(

&e * C $erivative- mar et- &ave itne--e$ rat&er -&arp /ro t& over t&e "a-t

!e year-> &ic& &a- accompanie$ t&e mo$erniAation o! commercia" an$

inve-tment +an in/ an$ /"o+a"i-ation o! !inancia" activitie-. &e recent

$eve"opment- in in!ormation tec&no"o/y &ave contri+ute$ to a /reat extent to

t&e-e $eve"opment-. =&i"e +ot& exc&an/e tra$e$ an$ * C $erivative contract-

o!!er many +ene!it-> t&e !ormer &ave ri/i$ -tructure- compare$ to t&e "atter. #t &a-

+een i$e"y $i-cu--e$ t&at t&e &i/&"y "evera/e$ in-titution- an$ t&eir * C

$erivative po-ition- ere t&e main cau-e o! tur+u"ence in !inancia" mar etin

1998. &e-e epi-o$e- o! tur+u"ence revea"e$ t&e ri- - po-e$ to mar et -ta+i"ity

ori/inatin/ in !eature- o! * C $erivative in-trument- an$ mar et-.

&e * C $erivative- mar et- &ave t&e !o""o in/ !eature- compare$ to

exc&an/etra$e$ $erivative-L

-. &e mana/ement o! counter party ;cre$it) ri- i- $ecentra"iAe$ an$

"ocate$ it&in in$ivi$ua" in-titution->

!. &ere are no !orma" centra"iAe$ "imit- on in$ivi$ua" po-ition-> "evera/e> or

mar/inin/>

. &ere are no !orma" ru"e- !or ri- an$ +ur$en -&arin/>4. &ere are no !orma" ru"e- or mec&ani-m- !or en-urin/ mar et -ta+i"ity an$

inte/rity> an$ !or -a!e/uar$in/ t&e co""ective intere-t- o! mar et

participant-> an$

. &e * C contract- are /enera""y not re/u"ate$ +y a re/u"atory aut&ority

an$ t&e exc&an/eB- -e"! re/u"atory or/aniAation> a"t&ou/& t&ey are

a!!ecte$ in$irect"y +y nationa" "e/a" -y-tem-> +an in/ -upervi-ion an$

mar et -urvei""ance.

Some o! t&e !eature- o! * C $erivative- mar et- em+o$y ri- - to !inancia"

mar et -ta+i"ity.

45


40/84


41/84

8+ FACTORS CONTRIBUTING TO THE GROWTH OF DERIVATIVES$

actor- contri+utin/ to t&e exp"o-ive /ro t& o! $erivative- are price vo"ati"ity>

/"o+a"i-ation o! t&e mar et-> tec&no"o/ica" $eve"opment- an$ a$vance- in t&e

!inancia" t&eorie-.

A.D P%ICE O'ATI'IT: 8

price i- &at one pay- to ac uire or u-e -omet&in/ o! va"ue. &e o+,ect-

&avin/ va"ue may+e commo$itie-> "oca" currency or !orei/n currencie-. &e

concept o! price i- c"ear to a"mo-t every+o$y &en e $i-cu-- commo$itie-.

&ere i- a price to +e pai$ !or t&e purc&a-e o! !oo$ /rain> oi"> petro"> meta"> etc. t&e

price one pay- !or u-e o! a unit o! anot&er per-on- money i- ca""e$ intere-t rate. n$ t&e price one pay- in oneB- o n currency !or a unit o! anot&er currency i- ca""e$

a- an exc&an/e rate.

rice- are /enera""y $etermine$ +y mar et !orce-. #n a mar et> con-umer- &ave

J$eman$B an$ pro$ucer- or -upp"ier- &ave J-upp"yB> an$ t&e co""ective interaction o!

$eman$ an$ -upp"y in t&e mar et $etermine- t&e price. &e-e !actor- are

con-tant"y interactin/ in t&e mar et cau-in/ c&an/e- in t&e price over a -&ort

perio$ o! time. Suc& c&an/e- in t&e price are no n a- Jprice vo"ati"ityB. &i- &a-

t&ree !actor-L t&e -pee$ o! price c&an/e-> t&e !re uency o! price c&an/e- an$ t&e

ma/nitu$e o! price c&an/e-.

&e c&an/e- in $eman$ an$ -upp"y in!"uencin/ !actor- cu"minate in mar et

a$,u-tment- t&rou/& price c&an/e-. &e-e price c&an/e- expo-e in$ivi$ua"->

pro$ucin/ !irm- an$ /overnment- to -i/ni!icant ri- -. &e +rea $o n o! t&e

:(E *% =** S a/reement +rou/&t an$ en$ to t&e -ta+i"i-in/ ro"e o! !ixe$

exc&an/e rate- an$ t&e /o"$ converti+i"ity o! t&e $o""ar-. &e /"o+a"i-ation o! t&e

mar et- an$ rapi$ in$u-tria"i-ation o! many un$er$eve"ope$ countrie- +rou/&t a

ne -ca"e an$ $imen-ion to t&e mar et-. %ation- t&at ere poor -u$$en"y

+ecame a ma,or -ource o! -upp"y o! /oo$-. &e exican cri-i- in t&e -out& ea-t

47


42/84

-ian currency cri-i- o! 1990B- &a- a"-o +rou/&t t&e price vo"ati"ity !actor on t&e

-ur!ace. &e a$vent o! te"ecommunication an$ $ata proce--in/ +ou/&t

in!ormation very uic "y to t&e mar et-. #n!ormation &ic& ou"$ &ave ta en

mont&- to impact t&e mar et ear"ier can no +e o+taine$ in matter o! moment-.

Even e uity &o"$er- are expo-e$ to price ri- o! corporate -&are !"uctuate-

rapi$"y.

&e-e price vo"ati"ity ri- - pu-&e$ t&e u-e o! $erivative- "i e !uture- an$ option-

increa-in/"y a- t&e-e in-trument- can +e u-e$ a- &e$/e to protect a/ain-t

a$ver-e price c&an/e- in commo$ity> !orei/n exc&an/e> e uity -&are- an$

+on$-.

;.D G'O;A'ISATION O0 =A%FETS 8Ear"ier> mana/er- &a$ to $ea" it& $ome-tic economic concern-G &at &appene$

in ot&er part o! t&e or"$ a- mo-t"y irre"evant. %o /"o+a"i-ation &a- increa-e$

t&e -iAe o! mar et- an$ a- /reat"y en&ance$ competition .it &a- +ene!ite$

con-umer- &o cannot o+tain +etter ua"ity /oo$- at a "o er co-t. #t &a- a"-o

expo-e$ t&e mo$ern +u-ine-- to -i/ni!icant ri- - an$> in many ca-e-> "e$ to cut

pro!it mar/in-

#n #n$ian context> -out& Ea-t -ian currencie- cri-i- o! 1997 &a$ a!!ecte$ t&e

competitivene-- o! our pro$uct- vi- W vi- $epreciate$ currencie-. Export o!

certain /oo$- !rom #n$ia $ec"ine$ +ecau-e o! t&i- cri-i-. Stee" in$u-try in 1998

-u!!ere$ it- or-t -et +ac $ue to c&eap import o! -tee" !rom -out& Ea-t -ian

countrie-. Su$$en"y +"ue c&ip companie- &a$ turne$ in to re$. &e !ear o! c&ina

$eva"uin/ it- currency create$ in-ta+i"ity in #n$ian export-. &u-> it i- evi$ent t&at

/"o+a"i-ation o! in$u-tria" an$ !inancia" activitie- nece--itate- u-e o! $erivative- to

/uar$ a/ain-t !uture "o--e-. &i- !actor a"one &a- contri+ute$ to t&e /ro t& o!

$erivative- to a -i/ni!icant extent.

48


43/84

C.D TEC*NO'OGICA' A< ANCES 8

-i/ni!icant /ro t& o! $erivative in-trument- &a- +een $riven +y tec&no"o/ica"

+rea t&rou/&. $vance- in t&i- area inc"u$e t&e $eve"opment o! &i/& -pee$

proce--or-> net or -y-tem- an$ en&ance$ met&o$ o! $ata entry. C"o-e"y

re"ate$ to a$vance- in computer tec&no"o/y are a$vance- in

te"ecommunication-. #mprovement in communication- a""o !or in-tantaneou-

or"$ i$e con!erencin/> ata tran-mi--ion +y -ate""ite. t t&e -ame time t&ere

ere -i/ni!icant a$vance- in -o!t are pro/ramme- it&out &ic& computer an$

te"ecommunication a$vance- ou"$ +e meanin/"e--. &e-e !aci"itate$ t&e more

rapi$ movement o! in!ormation an$ con-e uent"y itin-tantaneou- impact on

mar et price.

"t&ou/& price -en-itivity to mar et !orce- i- +ene!icia" to t&e economy a- a&o"e re-ource- are rapi$"y re"ocate$ to more pro$uctive u-e an$ +etter ratione$

overtime t&e /reater price vo"ati"ity expo-e- pro$ucer- an$ con-umer- to /reater

price ri- . &e e!!ect o! t&i- ri- can ea-i"y $e-troy a +u-ine-- &ic& i- ot&er i-e

e"" mana/e$. erivative- can &e"p a !irm mana/e t&e price ri- in&erent in a

mar et economy. o t&e extent t&e tec&no"o/ica" $eve"opment- increa-e

vo"ati"ity> $erivative- an$ ri- mana/ement pro$uct- +ecome t&at muc& more

important.


44/84

*.+ DEVELOPMENT OF DERIVATIVES MAR/ET IN INDIA

&e !ir-t -tep to ar$- intro$uction o! $erivative- tra$in/ in #n$ia a- t&e

promu"/ation o! t&e Securitie- 'a - ; men$ment) *r$inance> 1995> &ic&

it&$re t&e pro&i+ition on option- in -ecuritie-. &e mar et !or $erivative->

&o ever> $i$ not ta e o!!> a- t&ere a- no re/u"atory !rame or to /overn tra$in/

o! $erivative-. SE:# -et up a 24 mem+er committee un$er t&e C&airman-&ip o!

r.'.C. upta on %ovem+er 18>1996 to $eve"op appropriate re/u"atory

!rame or !or $erivative- tra$in/ in #n$ia. &e committee -u+mitte$ it- report on

arc& 17> 1998 pre-cri+in/ nece--ary pre con$ition- !or intro$uction o!

$erivative- tra$in/ in #n$ia. &e committee recommen$e$ t&at $erivative- -&ou"$

+e $ec"are$ a- J-ecuritie-B -o t&at re/u"atory !rame or app"ica+"e to tra$in/ o!

J-ecuritie-B cou"$ a"-o /overn tra$in/ o! -ecuritie-. SE:# a"-o -et up a /roup in

@une 1998 un$er t&e C&airman-&ip o! ro!.@.(. arma> to recommen$ mea-ure-

!or ri- containment in $erivative- mar et in #n$ia. &e report> &ic& a-

-u+mitte$ in *cto+er 1998> or e$ out t&e operationa" $etai"- o! mar/inin/

-y-tem> met&o$o"o/y !or c&ar/in/ initia" mar/in-> +ro er net ort&> $epo-it

re uirement an$ rea" time monitorin/ re uirement-. &e Securitie- Contract

(e/u"ation ct ;SC( ) a- amen$e$ in ecem+er 1999 to inc"u$e $erivative-it&in t&e am+it o! J-ecuritie-B an$ t&e re/u"atory !rame or ere $eve"ope$ !or

/overnin/ $erivative- tra$in/. &e act a"-o ma$e it c"ear t&at $erivative- -&a"" +e

"e/a" an$ va"i$ on"y i! -uc& contract- are tra$e$ on a reco/niAe$ -toc exc&an/e>

t&u- prec"u$in/ * C $erivative-. &e /overnment a"-o re-cin$e$ in arc& 2000>

t&e t&ree $eca$e o"$ noti!ication> &ic& pro&i+ite$ !or ar$ tra$in/ in -ecuritie-.

erivative- tra$in/ commence$ in #n$ia in @une 2000 a!ter SE:# /rante$ t&e !ina"

approva" to t&i- e!!ect in ay 2001. SE:# permitte$ t&e $erivative -e/ment- o!

t o -toc exc&an/e-> %SE an$ :SE> an$ t&eir c"earin/ &ou-eNcorporation to

commence tra$in/ an$ -ett"ement in approve$ $erivative- contract-. o +e/in

it&> SE:# approve$ tra$in/ in in$ex !uture- contract- +a-e$ on S< C% %i!ty

an$ :SE 30 ;Sen-e) in$ex. &i- a- !o""o e$ +y approva" !or tra$in/ in option-

+a-e$ on t&e-e t o in$exe- an$ option- on in$ivi$ua" -ecuritie-.

50


45/84

&e tra$in/ in :SE Sen-ex option- commence$ on @une 4> 2001 an$ t&e tra$in/

in option- on in$ivi$ua" -ecuritie- commence$ in @u"y 2001. uture- contract- on

in$ivi$ua" -toc - ere "aunc&e$ in %ovem+er 2001. &e $erivative- tra$in/ on

%SE commence$ it& S< C% %i!ty #n$ex !uture- on @une 12> 2000. &e

tra$in/ in in$ex option- commence$ on @une 4> 2001 an$ tra$in/ in option- on

in$ivi$ua" -ecuritie- commence$ on @u"y 2> 2001. Sin/"e -toc !uture- ere

"aunc&e$ on %ovem+er 9> 2001. &e in$ex !uture- an$ option- contract on %SE

are +a-e$ on S< C% ra$in/ an$ -ett"ement in $erivative contract- i- $one in

accor$ance it& t&e ru"e-> +ye"a -> an$ re/u"ation- o! t&e re-pective exc&an/e-

an$ t&eir c"earin/ &ou-eNcorporation $u"y approve$ +y SE:# an$ noti!ie$ in t&e

o!!icia" /aAette. orei/n #n-titutiona" #nve-tor- ; ##-) are permitte$ to tra$e in a""Exc&an/e tra$e$ $erivative pro$uct-.

&e !o""o in/ are -ome o+-ervation- +a-e$ on t&e tra$in/ -tati-tic- provi$e$ in t&e

%SE report on t&e !uture- an$ option- ; t&e in$ex) i- &i/&. re"ate$ i--ue i- t&at +ro er- $o not earn &i/&

commi--ion- +y recommen$in/ in$ex option- to t&eir c"ient-> +ecau-e "o

vo"ati"ity "ea$- to &i/&er aitin/ time !or roun$ trip-.

51


46/84

F ut vo"ume- in t&e in$ex option- an$ e uity option- -e/ment &ave

increa-e$ -ince @anuary 2002. &e ca"" put vo"ume- in in$ex option- &ave

$ecrea-e$ !rom 2.86 in @anuary 2002 to 1.32 in @une. &e !a"" in ca"" put vo"ume-

ratio -u//e-t- t&at t&e tra$er- are increa-in/"y +ecomin/ pe--imi-tic on t&e

mar et.

F art&er mont& !uture- contract- are -ti"" not active"y tra$e$. ra$in/ in

e uity option- on mo-t -toc - !or even t&e next mont& a- non exi-tent.

F ai"y option price variation- -u//e-t t&at tra$er- u-e t&e t&e intra $ay -toc price variation- -&ou"$ not &ave a one to one impact on

t&e option premium-.

&e -pot !orei/n exc&an/e mar et remain- t&e mo-t important

-e/ment +ut t&e $erivative -e/ment &a- a"-o /ro n. #n t&e $erivative

mar et !orei/n exc&an/e - ap- account !or t&e "ar/e-t -&are o! t&etota" turnover o! $erivative- in #n$ia !o""o e$ +y !or ar$- an$

option-. Si/ni!icant mi"e-tone- in t&e $eve"opment o! $erivative-

mar et &ave +een ;i) permi--ion to +an - to un$erta e cro--

currency $erivative tran-action- -u+,ect to certain con$ition- ;1996) ;ii)

a""o in/ corporate- to un$erta e "on/ term !orei/n currency - ap-

t&at contri+ute$ to t&e $eve"opment o! t&e term currency - ap mar et

;1997) ;iii) a""o in/ $o""ar rupee option- ;2003) an$ ;iv) intro$uction o!

currency !uture- ;2008). # ou"$ "i e to emp&a-i-e t&at currency

- ap- a""o e$ companie- it& EC:- to - ap t&eir !orei/n currency

"ia+i"itie- into rupee-. o ever> -ince +an - cou"$ not carry open

po-ition- t&e ri- a- a""o e$ to +e tran-!erre$ to any ot&er re-i$ent

corporate. %orma""y -uc& ri- - -&ou"$ +e ta en +y corporate- &o

52


47/84

&ave natura" &e$/e or &ave potentia" !orei/n exc&an/e earnin/-. :ut

o!ten corporate a--ume t&e-e ri- - $ue to intere-t rate $i!!erentia"- an$

vie - on currencie-.

&i- perio$ &a- a"-o itne--e$ -evera" re"axation- in re/u"ation- re"atin/ to

!orex mar et- an$ a"-o /reater "i+era"i-ation in capita" account re/u"ation-

"ea$in/ to /reater inte/ration it& t&e /"o+a" economy.

Ca-& -ett"e$ exc&an/e tra$e$ currency !uture- &ave ma$e !orei/n

currency a -eparate a--et c"a-- t&at can +e tra$e$ it&out any

un$er"yin/ nee$ or expo-ure a n $ on a "evera/e$ +a-i- on t&e

reco/niAe$ -toc exc&an/e- it& cre$it ri- - +ein/ a--ume$ +y t&ecentra" counterparty

Since t&e commencement o! tra$in/ o! currency !uture- in a"" t&e t&ree

exc&an/e-> t&e va"ue o! t&e tra$e- &a- /one up -tea$i"y !rom (- 17> 429

crore- in *cto+er 2008 to (- 45> 803 crore- in ecem+er 2008. &e avera/e

$ai"y turnover in a"" t&e exc&an/e- &a- a"-o increa-e$ !rom (-871 crore- to

(- 2>181 crore- $urin/ t&e -ame perio$. &e turnover in t&e currency

!uture- mar et i- in "ine it& t&e internationa" -cenario> &ere # un$er-tan$

t&e -&are o! !uture- mar et ran/e- +et een 2 3 per cent.

Ta9!e -+*Fo&e;Ma&3etA t"2"t'

pri"B05 pri"B06 pri"B07 pri"B08

arB06 arB07 arB08 ecB08ota" turnover ;?S +i""ion) 4>404 6>571 12>304 9>621

#nter +an to erc&ant ratio 2.6L1 2.7L1 2.37L 1 2.66L1

SpotN ota" urnover ;D) 50.5 51.9 49.7 45.9

or ar$N ota" urnover ;D) 19.0 17.9 19.3 21.5

S apN ota" urnover ;D) 30.5 30.1 31.1 32.7

Source> %;I

53


48/84

*-+ BENEFITS OF DERIVATIVES

erivative mar et- &e"p inve-tor- in many $i!!erent ay-L

-. %ISF =ANAGE=ENT 8

uture- an$ option- contract can +e u-e$ !or a"terin/ t&e ri- o! inve-tin/ in -pot

mar et. or in-tance> con-i$er an inve-tor &o o n- an a--et. e i"" a" ay- +e

orrie$ t&at t&e price may !a"" +e!ore &e can -e"" t&e a--et. e can protect

&im-e"! +y -e""in/ a !uture- contract> or +y +uyin/ a ut option. #! t&e -pot price

!a""-> t&e -&ort &e$/er- i"" /ain in t&e !uture- mar et> a- you i"" -ee "ater. &i-

i"" &e"p o!!-et t&eir "o--e- in t&e -pot mar et. Simi"ar"y> i! t&e -pot price !a""-

+e"o t&e exerci-e price> t&e put option can a" ay- +e exerci-e$.

!. P%ICE !uture- mar et-

provi$e a "o co-t tra$in/ mec&ani-m. &u- in!ormation pertainin/ to -upp"y an$

$eman$ ea-i"y perco"ate- into -uc& mar et-. ccurate price- are e--entia" !or

en-urin/ t&e correct a""ocation o! re-ource- in a !ree mar et economy. *ption-mar et- provi$e in!ormation a+out t&e vo"ati"ity or ri- o! t&e un$er"yin/ a--et.

. OPE%ATIONA' A< ANTAGES 8

- oppo-e$ to -pot mar et-> $erivative- mar et- invo"ve "o er tran-action co-t-.

Secon$"y> t&ey o!!er /reater "i ui$ity. 'ar/e -pot tran-action- can o!ten "ea$ to

-i/ni!icant price c&an/e-. o ever> !uture- mar et- ten$ to +e more "i ui$ t&an

-pot mar et-> +ecau-e &erein you can ta e "ar/e po-ition- +y $epo-itin/

re"ative"y -ma"" mar/in-. Con-e uent"y> a "ar/e po-ition in $erivative- mar et- i-

re"ative"y ea-ier to ta e an$ &a- "e-- o! a price impact a- oppo-e$ to a

tran-action o! t&e -ame ma/nitu$e in t&e -pot mar et. ina""y> it i- ea-ier to ta e

a -&ort po-ition in $erivative- mar et- t&an it i- to -e"" -&ort in -pot mar et-.

54


49/84

4. =A%FET E00ICIENC: 8

&e avai"a+i"ity o! $erivative- ma e- mar et- more e!!icientG -pot> !uture- an$

option- mar et- are inextrica+"y "in e$. Since it i- ea-ier an$ c&eaper to tra$e in

$erivative-> it i- po--i+"e to exp"oit ar+itra/e opportunitie- uic "y an$ to eep

price- in a"i/nment. ence t&e-e mar et- &e"p to en-ure t&at price- re!"ect true

va"ue-.

. EASE O0 SPEC?'ATION 8

erivative mar et- provi$e -pecu"ator- it& a c&eaper a"ternative to en/a/in/ in

-pot tran-action-. "-o> t&e amount o! capita" re uire$ to ta e a compara+"epo-ition i- "e-- in t&i- ca-e. &i- i- important +ecau-e !aci"itation o! -pecu"ation i-

critica" !or en-urin/ !ree an$ !air mar et-. Specu"ator- a" ay- ta e ca"cu"ate$

ri- -. -pecu"ator i"" accept a "eve" o! ri- on"y i! &e i- convince$ t&at t&e

a--ociate$ expecte$ return i- commen-urate it& t&e ri- t&at &e i- ta in/.

&e $erivative mar et per!orm- a num+er o! economic !unction-. &e price- o! $erivative- conver/e it& t&e price- o! t&e un$er"yin/ at t&e

expiration o! $erivative contract. &u- $erivative- &e"p in $i-covery o!

!uture a- e"" a- current price-. n important inci$enta" +ene!it t&at !"o - !rom $erivative- tra$in/ i- t&at it

act- a- a cata"y-t !or ne entrepreneuria" activity. erivative- mar et- &e"p increa-e -avin/- an$ inve-tment in t&e "on/ run.

ran-!er o! ri- ena+"e- mar et participant- to expan$ t&eir vo"ume o!

activity.

55


50/84

- . Nat(onal Exchan,es

#n en&ancin/ t&e in-titutiona" capa+i"itie- !or !uture- tra$in/ t&e i$ea o!

-ettin/ up o! %ationa" Commo$ity Exc&an/e;-) &a- +een pur-ue$ -ince 1999.

&ree -uc& Exc&an/e-> viA> %ationa" u"ti Commo$ity Exc&an/e o! #n$ia 't$.>

;% CE)> &me$a+a$> %ationa" Commo$ity < erivative- Exc&an/e ;%C E )>

um+ai> an$ u"ti Commo$ity Exc&an/e ; C )> um+ai &ave +ecome

operationa". M%ationa" Statu-K imp"ie- t&at t&e-e exc&an/e- ou"$ +e

automatica""y permitte$ to con$uct !uture- tra$in/ in a"" commo$itie- -u+,ect to

c"earance o! +ye"a - an$ contract -peci!ication- +y t&e C. =&i"e t&e % CE>

&me$a+a$ commence$ !uture- tra$in/ in %ovem+er 2002> C an$ %C E >

um+ai commence$ operation- in *cto+erN ecem+er 2003 re-pective"y.

=CH

C ; u"ti Commo$ity Exc&an/e o! #n$ia 't$.) an in$epen$ent an$ $e

mutu"i-e$ mu"ti commo$ity exc&an/e &a- permanent reco/nition !rom

overnment o! #n$ia !or !aci"itatin/ on"ine tra$in/> c"earin/ an$ -ett"ement

operation- !or commo$ity !uture- mar et- acro-- t&e country. ey -&are&o"$er-

o! C are inancia" ec&no"o/ie- ;#n$ia) 't$.> State :an o! #n$ia> C :an >

State :an o! #n$ore> State :an o! y$era+a$> State :an o! Saura-&tra> S:#'i!e #n-urance Co. 't$.> ?nion :an o! #n$ia> :an o! #n$ia> :an o!

:aro$a> Canera :an > Corporation :an

ea$ uartere$ in um+ai> C i- "e$ +y an expert mana/ement team

it& $eep $omain no "e$/e o! t&e commo$ity !uture- mar et-. o$ay C i-

o!!erin/ -pectacu"ar /ro t& opportunitie- an$ a$vanta/e- to a "ar/e cro-- -ection

o! t&e participant- inc"u$in/ ro$ucer- N roce--or-> ra$er-> Corporate>

(e/iona" ra$in/ Canter-> #mporter-> Exporter-> Cooperative-> #n$u-try

--ociation-> amon/-t ot&er- C +ein/ nation i$e commo$ity exc&an/e>

o!!erin/ mu"tip"e commo$itie- !or tra$in/ it& i$e reac& an$ penetration an$

ro+u-t in!ra-tructure.

56


51/84

C > &avin/ a permanent reco/nition !rom t&e overnment o! #n$ia> i- an

in$epen$ent an$ $emutua"i-e$ mu"ti commo$ity Exc&an/e. C > a -tate o!

t&e art nation i$e> $i/ita" Exc&an/e> !aci"itate- on"ine tra$in/> c"earin/ an$

-ett"ement operation- !or a commo$itie- !uture- tra$in/.

N=CE

%ationa" u"ti Commo$ity Exc&an/e o! #n$ia 't$. ;% CE) a- promote$

+y Centra" =are&ou-in/ Corporation ;C=C)> %ationa" /ricu"tura" Cooperative

ar etin/ e$eration o! #n$ia ;% E )> u,arat /ro #n$u-trie- Corporation

'imite$ ; #C')> u,arat State /ricu"tura" ar etin/ :oar$ ; S :)> %ationa"

#n-titute o! /ricu"tura" ar etin/ ;%# )> an$ %eptune *ver-ea- 'imite$ ;%*').

=&i"e variou- inte/ra" a-pect- o! commo$ity economy> viA.> are&ou-in/>

cooperative-> private an$ pu+"ic -ector mar etin/ o! a/ricu"tura" commo$itie->

re-earc& an$ trainin/ ere a$e uate"y a$$re--e$ in -tructurin/ t&e Exc&an/e>

!inance a- -ti"" a vita" mi--in/ "in . un,a+ %ationa" :an ; %:) too e uity o!

t&e Exc&an/e to e-ta+"i-& t&at "in a/e. Even to$ay> % CE i- t&e on"y Exc&an/e

in #n$ia to &ave -uc& inve-tment an$ tec&nica" -upport !rom t&e commo$ity

re"evant in-titution-.

% CE !aci"itate- e"ectronic $erivative- tra$in/ t&rou/& ro+u-t an$ te-te$tra$in/ p"at!orm> erivative ra$in/ Sett"ement Sy-tem ; SS)> provi$e$ +y

C C. #t &a- ro+u-t $e"ivery mec&ani-m ma in/ it t&e mo-t -uita+"e !or t&e

participant- in t&e p&y-ica" commo$ity mar et-. #t &a- a"-o e-ta+"i-&e$ !air an$

tran-parent ru"e +a-e$ proce$ure- an$ $emon-trate$ tota" commitment to ar$-

e"iminatin/ any con!"ict- o! intere-t. #t i- t&e on"y Commo$ity Exc&an/e in t&e

or"$ to &ave receive$ #S* 9001L2000 certi!ication !rom :riti-& Stan$ar$

#n-titution- ;:S#). % CE a- t&e !ir-t commo$ity exc&an/e to provi$e tra$in/

!aci"ity t&rou/& internet> t&rou/& irtua" rivate %et or ; %).

% CE !o""o - +e-t internationa" ri- mana/ement practice-. &e

contract- are mar e$ to mar et on $ai"y +a-i-. &e -y-tem o! up!ront mar/inin/

+a-e$ on a"ue at (i- i- !o""o e$ to en-ure !inancia" -ecurity o! t&e mar et. #n

57


52/84

t&e event o! &i/& vo"ati"ity in t&e price-> -pecia" intra $ay c"earin/ an$ -ett"ement

i- &e"$. % CE a- t&e !ir-t to initiate proce-- o! $emateria"iAation an$ e"ectronic

tran-!er o! are&ou-e$ commo$ity -toc -. &e uni ue -tren/t& o! % CE i- it-

-ett"ement- via a e"ivery :ac e$ Sy-tem> an imperative in t&e commo$ity

tra$in/ +u-ine--. &e-e $e"iverie- are execute$ t&rou/& a -oun$ an$ re"ia+"e

=are&ou-e (eceipt Sy-tem> "ea$in/ to /uarantee$ c"earin/ an$ -ett"ement.

NC 1956 it& t&e (e/i-trar o! Companie->

a&ara-&tra in um+ai on pri" 23>2003. #t &a- an in$epen$ent :oar$ o!irector- an$ pro!e--iona"- not &avin/ any ve-te$ intere-t in commo$ity

mar et-. #t &a- +een "aunc&e$ to provi$e a or"$ c"a-- commo$ity

exc&an/e p"at!orm !or mar et participant- to tra$e in a i$e -pectrum o!

commo$ity $erivative- $riven +y +e-t /"o+a" practice-> pro!e--iona"i-m an$

tran-parency.

or ar$ ar et- Commi--ion re/u"ate- %C E in re-pect o! !uture-

tra$in/ in commo$itie-. :e-i$e-> %C E i- -u+,ecte$ to variou- "a - o! t&e "an$

"i e t&e Companie- ct> Stamp ct> Contract- ct> or ar$ Commi--ion

;(e/u"ation) ct an$ variou- ot&er "e/i-"ation-> &ic& impin/e on it- or in/. #t i-

"ocate$ in um+ai an$ o!!er- !aci"itie- to it- mem+erin more t&an 390 centre-

t&rou/&out #n$ia. &e reac& i"" /ra$ua""y +e expan$e$ to more centre-.

%C E current"y !aci"itate- tra$in/ o! t&irty -ix commo$itie- Ca-&e >

Ca-tor See$> C&ana> C&i""i> Co!!ee> Cotton> Cotton See$ *i"ca e> Cru$e a"m

*i"> Expe""er u-tar$ *i"> o"$> uar /um> uar See$-> ur> @eera> @ute -ac in/

+a/-> i"$ Stee" #n/ot> u"+erry reen Cocoon-> epper> (ape-ee$ u-tar$

See$ >(a @ute> (: a"mo"ein> (e!ine$ Soy *i"> (ice> (u++er> Se-ame See$->

58


53/84

Si" > Si"ver> Soy :ean> Su/ar> ur> urmeric> ?ra$ ;:"ac atpe)> =&eat> Re""o

ea-> Re""o (e$ aiAe < Re""o Soy+ean ea".

TABLE-$ THE CURRENT PROFILE OF FUTURES TRADING IN

INDIA WITH RESPECT TO THE VARIOUS EXCHANGES IN INDIA$%

59


54/84


55/84

re-ent"y !uture-B tra$in/ i- permitte$ in a"" t&e commo$itie-. ra$in/ i-

ta in/ p"ace in a+out 78 commo$itie- t&rou/& 25 Exc&an/e-N --ociation- a-

/iven in t&e ta+"e +e"o L

TA;'E 4 %e,(stere+ commo+(ty exchan,es (n In+(a

No. Exchan,e-. #n$ia epper < Spice ra$e

--ociation> oc&i ;# S )!. i,ai :eopar C&am+er- 't$.>

uAa!!arna/ar . (a,$&ani *i"- < *i"-ee$- Exc&an/e

't$.> e"&i

4. :&atin$a *m < *i" Exc&an/e 't$.>:&atin$a

. &e C&am+er o! Commerce> apur

. &e eerut /ro Commo$itie-

Exc&an/e 't$.> eerut. &e :om+ay Commo$ity Exc&an/e

't$.> um+ai&. (a, ot See$-> *i" < :u""ion

erc&ant- --ociation> (a, ot

#. &e &me$a+a$ Commo$ity

Exc&an/e> &me$a+a$-". &e Ea-t #n$ia @ute < e--ian

Exc&an/e 't$.> Ca"cutta

--. &e Ea-t #n$ia Cotton --ociation't$.> um+ai

-!. &e Spice- < *i"-ee$- Exc&an/e

't$.> San/"i.- . %ationa" :oar$ o! ra$e> #n$ore

CO==O cotton-ee$>

it- oi" < ca e> cotton

; apa-) an$ (:

pa"mo"ein.Ca-tor-ee$> cotton-ee$> it-

oi" an$ oi"ca ee--ian < Sac in/

Cotton

urmeric

Soya -ee$> Soyaoi" an$Soya mea"->(ape-ee$N u-tar$-ee$ it-

61


56/84


57/84

%efer Ta1le -

o"ume ;no. o! contract-) increa-e$ +y 42.06D to 1>698.7 "a & &i"e

turnover increa-e$ +y 24.77D to (-. 3>317 t&ou-an$ crore in @u"y

Septem+er 2008 09 over pri" @une 2008 09.

uture- ;#n$ex uture O Stoc uture) con-titute$ 67.20D o! t&e tota"

num+er o! contract- tra$e$ in t&e 695 "a & an$ tota" turnover a- (-. 3>307 t&ou-an$ crore.

%efer Ta1le

o"ume in ini %i!ty ;contract- it& minimum "ot -iAe o! (-.1 "a &) a-

44 "a & an$ tota" turnover a- (-. 37 t&ou-an$ crore.

63


58/84

%efer Ta1le 4

urin/ @u"y Septem+er> 2008> S< C% %i!ty !uture- recor$e$ &i/&e-t

avera/e $ai"y vo"ati"ity o! 2.85D in @u"y 2008.

%efer Ta1le

0&e vo"ume ;in term- o! no. o! contract- tra$e$) o! %i!ty 3uture at

S a- a percenta/e o! t&e vo"ume o! %i!ty uture at %SE a- 8.55D

$urin/ @u"y Septem+er 2008 09.

%efer Ta1le

#n$ia -tan$- 2n$ in Stoc uture-> 2n$ in #n$ex uture-> 16t& in Stoc*ption an$

4t& in #n$ex *ption- ;a- on %ovem+er 10> 2008) in =or"$ erivative-

ar et ;in term- o! vo"ume) at t&e en$ o! Septem+er 2008.

erivative contract- ere "aunc&e$ on 38 -ecuritie- at %ationa" Stoc

Exc&an/e $urin/ @u"y Septem+er 2008 09.

Ta9!e%8$ Fa t f"!e of J)!'%Se1te79e& ,==>%=? :"th &e(1e t to the

1&e2"o)( @)a&te&

P%O


59/84

In+ex Opt(onS(n,le Stock0utureStock Opt(on

Turno2er (n 0 O as

mult(ple of turno2er (ncash se,ment

0(2e most act(2e

scr(ps (n the

0 O Se,ment

act(2e scr(ps (n

the 0 O

Se,ment

Contr(1ut(on of the a1o2e f ( 2 e

to total+er(2at(2esturno2er 6L7Cl(ent6exclu+(n, 0IItra+es7Propr(etary0II

1>130.9 21.49

1>039.3 41.12

69.1 2.19

3.26 (e"iance

(e"iance etro. 't$. ata Stee" (e"iance Capita" 't$ #n!o-y- ec&. 't$

23.72

59.77

27.88

12.35

30.68 34.09

35.26 31.33

2.11 2.08

4.19

(e"iance

(e"iance Capita" 't$ (e"iance etro. 't$ State :an o! #n$ia #C#C# :an 't$

25.12

60.17

31.07

8.76

Ta9!e% $ Data fo& Sho&te& Dated a#d Lo#0e& Dated de&"2at"2eo#t&a t(

T(mePer(o+ Tra+es (n Shorter


60/84

July8Septem1er

!""&8"# 1>694.64 3>307.11 3.99 9.87

Apr8Jun !""&81>194.97 2>655.88 4.83 12.5

"#

Ta9!e%


61/84


62/84

67


63/84

Ta9!e%*=$ Sta#d"#0 of I#d"a "# Wo&!d De&"2at"2e( Ma&3et 4"# te&7( of 2o!)7e5

Septem1erPro+ucts July !""& Au,ust !""&

Stock 0uture 1 1

In+ex 0uture 2 2

Stock Opt(on 9 15

In+ex Opt(on 4 4

!""&

2

2

16

4

SourceL . or"$ exc&an/e-.or/ ;a- on %ovem+er 10> 2008)

Sal(ent po(nts for the !n+ uarter !""&8"#

&e vo"ume ;no. o! contract-) an$ open intere-t in t&e $erivative-

mar et &a- increa-e$ even &en t&e un$er"yin/ mar et i- itne--in/ a

$o n ar$ tren$. &i- in$icate- t&at t&ere are -u!!icient "on/ po-ition &o"$er-

&o anticipate va"ue propo-ition in a !a""in/ mar et. a""in/ or ri-in/ mar et-

on t&e +ac o! "o vo"ume- may +e a cau-e o! concern !rom t&e point o!

mar et inte/rity. o ever> a- o+-erve$ !rom t&e $ata> un$er t&e pre-ent

-cenario t&e !a"" in t&e mar et &a- +een accompanie$ +y &i/& vo"ume-.

#n #n$ex *ption> t&ere i- a -&arp increa-e in turnover ;97.95D) an$

vo"ume ;117.08D) $urin/ @u"y Septem+er 2008 09 over pri" @une 2008 09.

o--i+"e rea-on- !or increa-e in option- tra$in/ activity can +e attri+ute$ toincrea-e in vo"ati"ity. ar et o+-erver- +e"ieve t&at con$ition- acro-- mar et-

an$ a--et c"a--e- &ave +ecome more vo"ati"e an$ uncertain in t&e recent pa-t.

enera""y in -uc& con$ition-> many peop"e +e"ieve t&at option- act a-

Hin-uranceH a/ain-t a$ver-e price movement- &i"e o!!erin/ t&e !"exi+i"ity to

68
http://www.world-exchanges.org/http://www.world-exchanges.org/


64/84

+ene!it !rom po--i+"e !avoura+"e price movement- at t&e -ame time. not&er

rea-on &ic& can +e attri+ute$ to t&e increa-e in activity i- t&e ne $irective a- per

t&e :u$/et 2008 09 &ic& -tate- t&at S ou"$ no +e "evie$ on t&e *ption

premium in-tea$ o! t&e -tri e price.

#n #n$ex uture> +ot& turnover ;15.17D) an$ vo"ume ;30.53D) &aveincrea-e$ $urin/ @u"y Septem+er 2008 09 a- compare$ to pri" @une 2008 09.

&ere i- a $ecrea-e in turnover ;4.92D) in Sin/"e Stoc uture-

$urin/ @u"y Septem+er 2008 09 a- compare$ to pri" @une 2008 09.

Except #n$ex *ption> t&e mar et -&are o! a"" ot&er pro$uct- &a-$ecrea-e$ ;+ot& in term- o! vo"ume an$ turnover) in -econ$ uarter o! 2008

09 a- compare$ to t&e !ir-t uarter o! 2008 09.

&ere i- a $ecrea-e in turnover ;21.04D) an$ vo"ume ;17.39D) in

'on/er ate$ $erivative contract- in -econ$ uarter o! 2008 09 a- compare$ to

t&e !ir-t uarter o! 2008 09.

'on/er $ate$ $erivative- ere "aunc&e$ in arc& 2008> +ut t&e

vo"ume- &ave not pic e$ up con-e uent"y.

or -&orter $ate$ $erivative contract-> turnover increa-e$ +y 24.52D

&erea- vo"ume increa-e$ +y 4.81D in -econ$ uarter o! 2008 09 a-

compare$ to t&e !ir-t uarter o! 2008 09.

urin/ 2008 09> ini %i!ty vo"ume- increa-e$ +y 49.15D an$ turnover

increa-e$ +y 33.43D $urin/ @u"y Septem+er 2008 09 over pri" @une 2008 09.

69


65/84

*>+ B)("#e(( G&o:th "# De&"2at"2e( (e07e#t 4NSE5

TA;'E --A In+ex futures

Rear %o. o! contract-

2008 09 4116649

2007 08 156598579

2006 07 81487424

2005 06 58537886

2004 05 21635449

2003 04 171916682002 03 2126763

2001 02 1025588

0IG?%E --A Num1er of contracts per year

70


66/84

- """""""-4""""""" !""&8"#

-!""""""" !"" 8"&

-"""""""" !"" 8"

&""""""" !"" 8"""""""" !""48"

4""""""" !"" 8"4!""""""" !""!8"

" !""-8"!year

INTE%P%ETATION> rom t&e $ata an$ t&e +ar $ia/ram a+ove> t&ere i- &i/&

+u-ine-- /ro t& in t&e $erivative -e/ment in #n$ia. #n t&e year 2001 02> t&enum+er o! contract- in #n$ex uture ere 1025588 &ere a- a -i/ni!icantincrea-e o! 4116679 i- o+-erve$ in t&e year 2008 09.

Ta1le --; No of turno2ers

Rear urnover ;(-. Cr.)

2008 09 925679.96

2007 08 3820667.27

2006 07 2539574

2005 06 1513755

2004 05 772147

2003 04 554446

2002 03 43952

2001 02 21483

0IG?%E --; Turno2er (n %s. Crores

71


67/84

4""""""

""""" !""&8"#

"""""" !"" 8"&! """"" !"" 8"

!"""""" !"" 8"- """"" !""48"-"""""" !"" 8"4

""""" !""!8"

" !""-8"!year

INTE%P%ETATION>rom t&e $ata an$ a+ove +ar c&art> t&ere i- &i/& turn over in t&e $erivative

-e/ment in #n$ia. #n t&e year 2001 02 t&e turnover o! in$ex !uture a- 21483

&ere a- a &u/e increa-e o! 92567996 in t&e year 2008 09 are o+-erve$.

72


68/84


69/84

Rear

2008 092007 082006 072005 062004 052003 042002 032001 022000 01

0IG?%E -!; Turno2er (n %s. Crores

&""""""

""""""

""""""""""""

4""""""

""""""

!""""""

-""""""

"year

INTE%P%ETATION>

urnover

;(-. Crore-)1093048.267548563.23383096727916971484056130593928653351515

!""&8"#

!"" 8"&

!"" 8"

!"" 8"

!""48"

!"" 8"4

!""!8"

!""-8"!

!"""8"-

rom t&e $ata an$ +ar c&art a+ove> t&ere ere no -toc !uture- avai"a+"e in t&e

year 2000 01. &ere a- a -tea$y increa-e o! -toc !uture 51515 in t&e year

2001 02. +ut in t&e year t&ere a- a &u/e increae o! 7548563.23 in t&e year

2007 08 it& a con-i$era+"e $ec"ine o! 1093048.26 in t&e year 2008 09.

TA;'E - A IN


70/84

2004 05 32935582003 04 17324142002 03 4422412001 02 175900

2000 01

0IG?%E - A Num1er of contracts per year

"""""""

"""""""

4"""""""

"""""""!"""""""

-"""""""

"year

Interpretat(on>

!""&8"#

!"" 8"&

!"" 8"

!"" 8"

!""48"

!"" 8"4

!""!8"

!""-8"!

rom t&e $ata an$ +ar c&art a+ove> t&e no o! contract- o! in$ex option a- ni" in

t&e year 2000 2001. :ut t&ere a- a pre$ominant increa-e o! 1>75>900 in t&e

year 2001 2002. #n t&e year 2007 2008 t&ere a- a &u/e increa-e in t&e in$ex

option contract- to 55366038 an$ a $ec"ine o! 24008627 in t&e year 2008 2009.

TA;'E - ; Turno2er per year (n %s. Crores

Rear urnover ;(-. Crore-)2008 09 71340.022007 08 1362110.882006 07 791906

75
http://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2002-03.htmhttp://www.nseindia.com/content/fo/fo_busgrow2001-02.htmhttp://www.nseindia.com/content/fo/fo_busgrow2000-01.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2002-03.htmhttp://www.nseindia.com/content/fo/fo_busgrow2001-02.htmhttp://www.nseindia.com/content/fo/fo_busgrow2000-01.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htm


71/84

2005 06 3384692004 05 1219432003 04 528162002 03 9246

2001 02 37652000 01

0IG?%E - ; Turno2er per year (n %s. Crores

-4"""""

-!"""""

-""""""

&"""""

"""""

4"""""

!"""""

"year

Interpretat(on>

!""&8"#

!"" 8"&

!"" 8"

!"" 8"

!""48"

!"" 8"4

!""!8"

!""-8"!

rom t&e $ata an$ +ar c&art a+ove> t&ere a- no turnover in t&e year 2000 2001 !or

#n$ex option. #t -"o "y -tarte$ increa-in/ in t&e year 2000 2001 to 3765.:ut in t&e

year 2007 2008 t&ere a- a &u/e increa-e o! 1362110.088 an$ a -u$$en

$ec"ine to 71340.02 o+-erve$ in 2008 2009.

TA;'E -4A STOCF OPTIONS

Rear %o. o! contract-2008 09 25461752007 08 94606312006 07 52833102005 06 52407762004 05 50451122003 04 5583071

76
http://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2002-03.htmhttp://www.nseindia.com/content/fo/fo_busgrow2001-02.htmhttp://www.nseindia.com/content/fo/fo_busgrow2000-01.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2002-03.htmhttp://www.nseindia.com/content/fo/fo_busgrow2001-02.htmhttp://www.nseindia.com/content/fo/fo_busgrow2000-01.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htm


72/84

2002 03 35230622001 02 10375292000 01

0IG?%E -4A Num1er of contracts tra+e+ per year (n stock opt(on

-"""""""#""""""&""""""

""""""""""""""""""

4""""""

""""""!""""""-""""""

"

INTE%P%ETATION>

!""&8"#

!"" 8"&

!"" 8"

!"" 8"

!""48"

!"" 8"4

!""!8"

!""-8"!

year

rom t&e $ata an$ +ar c&art a+ove t&e no o! contract- o! -toc option in t&e year

2000 2001 a- ni". :ut t&ere a- a &u/e increa-e o! 1037529 o+-erve$ in t&e

year 2001 2002. #t a- 9460631 &ic& a- t&e t&e &i/&e-t in t&e year 2007

2008. :ut a /ra$ua" $ec"ine o! 2546175 in t&e year 2008 2009.

TA;'E -4; Nat(onal turno2er (n %s. Crores per year

Rear %otiona" turnover ;(-.

crore-)2008 09 58335.032007 08 359136.552006 07 1937952005 06 1802532004 05 168836
http://www.nseindia.com/content/fo/fo_busgrow2002-03.htmhttp://www.nseindia.com/content/fo/fo_busgrow2001-02.htmhttp://www.nseindia.com/content/fo/fo_busgrow2000-01.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2002-03.htmhttp://www.nseindia.com/content/fo/fo_busgrow2001-02.htmhttp://www.nseindia.com/content/fo/fo_busgrow2000-01.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htm


73/84

77


74/84

2003 04 2172072002 03 1001312001 02 251632000 01

0IG?%E -4; Nat(onal turno2er (n %s. Crores per year

4"""""

""""

"""""

! """"

!"""""

- """"

-"""""""""

"year

Interpretat(on>

!""&8"#

!"" 8"&

!"" 8"

!"" 8"

!""48"

!"" 8"4

!""!8"

!""-8"!

rom t&e c&art an$ t&e +ar $ia/ram a+ove t&e -toc option turnover in t&e year

2000 2001 a- ni". &ere a- a -"o increa-e o! 25163 in t&e year 2001 2002. :ut

a p&enomena" increa-e o! 359136.55 in t&e year 2007 2008> an$ a $ec"ine o!

58355.03 in t&e year 2008 2009.

TA;'E - A O E%A'' T%A


75/84

2002 03 16768909 4398622001 02 4196873 1019262000 01 90580 2365

0IG?%E - A A2era,e +a(ly turno2ers (n %s. Crores

""""!"""8!""-

""""

4""""

""""

!""""

-""""

"year

Interpretat(on>

!""-8!""!

!""!8!""

!"" 8!""4

!""48!""

!"" 8!""

!"" 8!""

!"" 8!""&

!""&8!""#rom t&e $ata an$ +ar c&art a+ove> t&e overa"" tra$in/ contract- in t&e year

2000 2001 a- 90580 an$ &u/e increa-e o! 119171008 in t&e year 2008 2009.rom t&e $ata an$ +ar c&art a+ove t&e overa"" tra$in/ turnover in t&e year 2000

2001 a- a- "o a- 2365 +ut a pre$ominant increa-e o! 2648403.30 o+-erve$ int&e year 2008 2009.

TA;'E - O2erall tra+e +escr(pt(on un+er NSE

In+ex0utures

: No. Turno2ee of r 6%s.a contr cr.7r acts

Stock In+ex0utures

Opt(ons

No. Turno2e No.of r 6%s. of contract cr.7

contracs ts

StockOpt(ons

Not(onal No. Not(onal Turno2e of Turno2er 6%s. contract r 6%s.

cr.7 s cr.7

Interest%ate Total0utures

No. Tu No. Tof rno of u

cont 2er contracts rract 6%s ns o

cr.7 2e

r
http://www.nseindia.com/content/fo/fo_busgrow2002-03.htmhttp://www.nseindia.com/content/fo/fo_busgrow2001-02.htmhttp://www.nseindia.com/content/fo/fo_busgrow2000-01.htmhttp://www.nseindia.com/content/fo/fo_busgrow2002-03.htmhttp://www.nseindia.com/content/fo/fo_busgrow2001-02.htmhttp://www.nseindia.com/content/fo/fo_busgrow2000-01.htm


76/84

79


77/84

6%s

cr

7

! " " & 8 " #

! " "

8 " &

! " "

8 "

! " "

8 "

! " " 4 8 "

! " "

41166469

156598579

8148742

4

58537886

21635449

17191668

925679 9

6

382066727

2539574

1513755

772147

554446

5144973 10930487 26

2035879 754856352 23

10495543830967

01

80905492791697

3

4704306 14840566

3236884 13059392

240086 571340 02546175

27 2

553660 13621109460631

38 88

251574791906 5283310

38

129351338469 5240776

16

329355 121943 50451128

173241 52816 55830714

2648

0 0 11917100 458335 03 0

0 8 03

3013090

359136 5 0 0 425013200 4

5 0 077

75735

21688357193795 0 0 63

242482

15761927180253 0 0 4

1174254

168836 0 0 77017185 6982

217207 1078 202 56886776 21 1

30

80
http://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2003-04.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2008-09.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2007-08.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2006-07.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2005-06.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo/fo_busgrow2004-05.htmhttp://www.nseindia.com/content/fo

corporate governnance of iifl

Documents

Transcript of corporate governnance of iifl