Entrepreneurship & Organization Management

Personal Variables of Perception towards Equity Derivative Markets in India

Abstract

Selvaraj N*

The stock market is a place where buyers and sellers of stocks come together, physically or virtually. Market participants can be small individuals or large fund managers who can be situated anywhere. Traders place their orders to the professionals of a stock exchange who executes these buying and selling orders. The stocks are listed and traded on stock exchanges.

In India, Traders want maximum gain with minimum risk, so is the case with derivatives. Derivatives are among the forefront of the innovations in the financial markets and aim to increase returns and reduce risk. A derivative is a financial product which has been derived from another financial product or commodity. The derivatives do not have independent existence without underlying product and market. Derivatives are contracts which are written between two parties for easily marketable assets. Derivatives are gaining importance due to increased volatility in capital and foreign currency markets. RBI finds ways for healthy development of market and takes steps to popularise the use of derivative instruments, but still awareness about the derivative instruments and its uses are quite low. Hence, it is necessary to find out the level of awareness among investing public and if found low, how to create adequate awareness to encourage the use of derivative products as hedge tools.

The concept of General Insurance may be extended to the amount invested in Indian Stock Market for which the premium may be collected from the traders. To keep the interest of the traders in mutual fund the companies will play a vital role to attract the traders to invest in mutual fund so for that companies should bring such plans which is having very low risk As per the study the traders wants safe returns on their investment and all traders know the risk in share market and which is the main reason traders avoid to invest in shares and equities or mutual fund because of the fear of losing the money. The Market should maintain a good relationship in reality and should render of quick services according to the customers, in case of necessity.