Derivative products like index futures, stock futures, index options and stock options have become important instruments of price discovery, portfolio diversification and risk hedging in stock markets all over the world in recent times.

In the last decade, many emerging and transition economies have started introducing derivative contracts. Ever since index futures were introduced by the National Stock Exchange NSE in June , there has been a lot of controversy regarding their usage. Derivatives are known to be a double edged sword, you can use it to kill enemies, kill yourself or for self-defense.

Introduction of derivative products, however, has not always been perceived in a positive light all over the world. It is, in fact, perceived as a market for speculators and concerns that it may have adverse impact on the volatility of the spot market.

Indian Government had earlier banned futures trading in commodities on the belief that they were over speculated and caused an inflationary situation. Now trading has been resumed on four banned commodities, after the inflation rate has moderated.

There is also a hope that government may soon lift the trading ban on food grains. This offers great relief for importers and exporters to hedge their positions. Earlier, an expert committee headed by Abhijit Sen was constituted to study the impact of futures trading on agricultural commodity prices.

Wheat, urad, tur and rice were among the products that were considered in the report. This paper tries to study whether the Indian stock markets show some significant change in the volatility after the introduction of derivatives trading.

This paper also tries to examine whether decline or rise in volatility can be attributed to introduction of derivatives alone or due to some other macroeconomic reasons.

Agarwal, Ravi and Shiva Kumar and Mukhtar, Wasif and Abar, Hemanth, Impact of Derivatives on Stock Market January 16, Indian Finance Summit, January Sonipat Narela Road Near Jagdishpur Village Sonipat, Haryana India. Subscribe to this fee journal for more curated articles on this topic. Global Business Issues eJournal. Derivatives Trading and Volatility - A Study of the Indian Stock Markets. By Ash Sah and G. Commodity Derivative Market and its Impact on Spot Market.

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Impact of Derivatives on Stock Market by Ravi Agarwal, Shiva Kumar , Wasif Mukhtar, Hemanth Abar :: SSRN

This page was processed by apollo7 in 0. Your Account User Home Personal Info Affiliations Subscriptions My Papers My Briefcase Sign out. Download this Paper Open PDF in Browser Share: Using the URL or DOI link below will ensure access to this page indefinitely. Jindal Global University JGU Shiva Kumar Birla Institute of Management Technology BIMTECH Wasif Mukhtar Deloitte Touche Tohmatsu India Hemanth Abar affiliation not provided to SSRN.

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Impact of Derivatives on Stock Market by Ravi Agarwal, Shiva Kumar , Wasif Mukhtar, Hemanth Abar :: SSRN

Jindal Global University JGU email Sonipat Narela Road Near Jagdishpur Village Sonipat, Haryana India HOME PAGE: Shiva Amaresan Contact Author Birla Institute of Management Technology BIMTECH email Plot No. Wasif Mukhtar Deloitte Touche Tohmatsu India email Hyderabad India. Hemanth Abar affiliation not provided to SSRN email. Download this Paper Open PDF in Browser. Related eJournals Risk Management eJournal Follow. Risk Management eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS.

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Global Business Issues eJournal Follow. Global Business Issues eJournal Subscribe to this fee journal for more curated articles on this topic FOLLOWERS. Doh at Villanova University - School of Business, Paul M. Vaaler at University of Minnesota, Twin Cities - Law School and Carlson School of Management. Recommended Papers Derivatives Trading and Volatility - A Study of the Indian Stock Markets By Ash Sah and G.

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