Usage of Derivative instruments in Tripura: Investors’ Perception

Derivative attracts users to participate in the derivative market instead of underlying cash market for superior investment instrument, managing risk or for speculative trading due to inherent leverage and lower transaction cost. The derivatives have become an integral part of the stock market in India as they contribute more than 90% (93.15% in 2013–14 at NSE) of the total volume of transactions. However this instrument is not acceptable by the investors of Tripura. Here the findings of our study indicate that unwise handling of derivative instruments incurs loss in derivative transaction and due to this investors are afraid of such kind of transactions in recent times.