Derivatives market in India: A study of Wipro Limited shares

Type :

Case study

Pages :

50 pages

Format :

.doc

Published date :

03/05/2009

Category :

Business & market

Sub category :

Marketing

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Summary :

Introduction
1. Derivatives
2. Definition
3. Products
4. Participants
5. Functions
6. Types of derivatives
7. Characteristics of derivatives
8. Rationale behind the devolpment of derivatives
9. Derivatives instruments in india
10. Derivatives segment in BSE& NSE
11. Contract periods
12. Settlement
13. Margins
14. Members of futures & options segment
15. Exposure limit
16. Position limit
The Securities Contracts (Regulation) Act of 1956
1. Regulation for derivatives trading
Company profile
1. Karvy: Background
2. An overview
3. Early days
4. The Karvy credo
5. Milestones
6. Karvy as a mutual fund investment advisor
7. Achievements
8. Range of services
Karvy Stock Broking Ltd
1. Stock broking services
2. Depository participants
3. Distribution of financial products
4. Advisory services
5. Private client group
Karvy Computershare Pvt Ltd
1. Mutual fund services
2. Issue registry
3. Corporate shareholder services
Karvy Global Services Ltd
Karvy Comtrade Ltd
Karvy insurance broking Pvt Ltd
Karvy Inc
Objectives of the study
1. Basic objectives
2. Other objectives
Scope of study
Methodolgy
1. Primary data
2. Secondary data
3. Time span
4. Limitations
Analysis and interpretations
1. Futures
2. Stock index futures
3. Margin effect (mark to margin)
4. Stock features
5. Risks
6. Options
7. Volatility
8. Dividends
Options classifications
1. Call option
2. Pay for a call option buyer
3. Payoff of call option writer
4. Call option seller's pay off
5. Call option buyer's pay-off
6. Profit / loss position of call option
7. Put option
8. Pay off for a put option buyer
Options pricing
1. Effect of increase in the relevent parameter on option prices
2. Factors determining option value
3. Exercise price and share price
4. Option valuation
Difference between futurs & options
Charts of wipro call options
Conclusions and recommendations
1. Observations
2. Conclusions
3. Recommendations

Abstract

The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked very high degree of volatility. Through the use of derivative products it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuation in the underlying asset price in futures & options. The capital adequacy norms for banks in the European Economic Community demand less capital to hedge or speculate through derivatives than to carry underlying assets. derivatives are weighed lightly than the assets that to carry underlying assets. derivatives are weighed lightly than the assets that appear on bank balance sheets. The size of these off balance sheet assets, which include derivatives, is more than seven times as large as balance sheet items at some American banks causing concern to regulators.