Derivative trading in Indian Stock Market: Investor's perceptIon with reference to udaipur

Derivative products like futures and options on Indian stock markets have become important instruments of price discovery, portfolio diversification and risk hedging in recent times. The objective of the study is to analyze the perception of investors regarding the derivatives market in India. The study was conducted on a sample of investors who are active participants in the cash and derivative segment of the NSE and BSE. The primary data for this research was collected from a sample of 140 people who are currently trading in the city of Udaipur, India. The research findings could be utilized by broking firms, investors and scholars for further analysis on investor's perception and to understand this issue critically. This paper explores the perception of investors on cash market and derivative market using data of stock and index futures and options. The result shows that the majority of investors invest in cash market.