1Research Scholar, Faculty of Management Sciences, IBCS, Siksha ‘O’ Anusandhan (SOA) Deemed University, Bhubaneswar, Odisha, India
2Professor (Finance Management), Faculty of Management Sciences, IBCS, Siksha ‘O’ Anusandhan (SOA) Deemed University, Bhubaneswar, Odisha, India
3Associate Professor (Marketing Management), Faculty of Management Sciences, IBCS, Siksha ‘O’ Anusandhan (SOA) Deemed University, Bhubaneswar, Odisha, India
This study offers a comprehensive analysis of the challenges and issues faced in derivatives trading within the Indian capital market, accompanied by critical observations on the subject. The study commences by examining the history and evolution of derivatives in India, presenting a chronological overview of the development of the Indian derivatives market. A literature review is conducted to explore the existing body of knowledge and research on derivatives trading in India, highlighting key insights and findings. The global derivatives market in the Futures and Options (F&O) segment is also discussed, emphasizing its relevance and trends. The challenges associated with the derivatives market, including market volatility, liquidity risk, regulatory compliance, and counterparty risk, are thoroughly examined. Specific issues in the Indian derivatives market, such as price manipulation, insider trading, and regulatory gaps, are addressed. The research further explores potential strategies and recommendations for overcoming these market-related challenges and issues. In conclusion, the paper summarizes critical observations and provides key insights for market participants, regulators, and policymakers. The aim is to enhance the efficiency, stability, and integrity of the derivatives trading ecosystem in the Indian capital market.
Derivative instruments, Issues, Tax, Futures and Options (F&O), Risk, Disclosure
