Abstract

The case discusses the introduction and growth of the derivatives market in India. It describes in detail the reasons that led to the introduction of derivatives trading in India and why it faced opposition by a section of industry analysts and media. The case then describes the issues that still remain to be addressed by the regulatory authorities to accelerate the long-term growth of the derivatives market. Finally, the case mentions a few steps taken by the concerned authorities in early 2004.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Factors that can accelerate/suppress the growth of the derivatives market.

Keywords

Growth, derivatives market, India, introduction, derivatives trading, opposition, industry analysts, media, regulatory authorities, long-term growth, steps, concerned authorities, 2004