Regulatory Issues of Equity Derivative Market in India

Derivative trading was introduced in India in the year 2000 on NSE and BSE. Since then Derivatives have been widely used in Indian stock market. Equity Derivatives have become one of integral part of financial markets. But unregulated market activities may result into undesirable consequences. So, there is a need of strict adherence of regulations given by regulatory bodies. The present study has conducted a survey through a structured questionnaire targeting 200 retail investors, 150 dealers, 50 managers of broking firms and 20 research analysts of India to know their level of understanding and satisfaction regarding regulatory issues of equity derivative market in India. The study uses ANOVA to examine the effect of demographic variables of respondents on their views. It is found that regulatory framework is required to meet the needs of ensuring market integrity and investor protection.