Derivatives Market

COMMODITY DERIVATIVE MARKET IN INDIA: ISSUES, SCOPE AND CHALLENGES Prof. (Dr.) Ashok Agrawal Deptt. Of Commerce, University of Rajasthan, Jaipur. trip: ashokuor@gmail.com Assistant Professor (Dr.) Anshul sharma S.D.College of Management, Israna, Panipat. Mail: dranshulindia2004@gmail.com Ms. Anju Katyal Lecturer, S.D.College of Management, Israna, Panipat. Mail: anjukatyal1@gmail.com ABSTRACT Organized goodness derivatives in India started as early as 1875, barely well-nigh a decade after they started in Chicago. However, many feared that derivatives fuelled inessential speculation and were detrimental to the healthy functioning of the markets for the underlying commodities. As a result, after independence, goodness options trading and cash shutdown of commodity futures were banned in 1952. A further stumble came in 1960s when, following several years of heartrending draughts that forced many farmers to default on previous contracts (and even caused some suicides); forward trading was banned in many commodities considered primary or essential.

Consequently, the commodities derivative markets dismantled and remained hibernating(a) for about four decades until the new millennium when the Government, in a complete change in policy, started actively encouraging the commodity derivatives market. Since 2002, the commodities futures market in India has experienced an unprecedented boom in terms of the number of modern exchanges, number of commodities allowed for derivatives trading as well as the value of futures trading in commodities, which cleverness cross the $ 1 Trillion mark in 2006. However, thither are several impediments to be overcome and issues to be resolved for sustainable development of the market. The Government of India is contemplating allowing the Institutional investors like contrasted Institutional Investors, Mutual funds and Banks to trade in a few selected products of commodity derivatives markets in India. This paper attempts to answer questions such as:... If you want to get a full essay, site it on our website: Orderessay

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