| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 12 |
NO. 1 |
PAPER 8 |
DOI : 10.5958/2321-2012.2016.00008.7 |
PRACTITIONERS’ VIEW ON THE USE OF DEBT DERIVATIVES IN INDIA AND JUDGEMENTAL BIAS
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| Ganesh R* and Naresh G**
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| * Research Scholar, Department of Commerce, Pondicherry University-Karaikal Campus |
| ** Assistant Professor, Department of Commerce, Pondicherry University-Karaikal Campus |
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| In a developing market like India, trading of debt derivatives is still at a nascent stage since the market participants have not gained enough confidence due to the stringent regulations relating to trading of these instruments. Therefore, this research intends to focus on the practitioners’ perspective on the use of debt derivatives under Indian capital market conditions. The findings of the study show that majority of practitioners use debt derivative for hedging and found limited usefulness in debt derivative. However, since many managers consider derivatives as a risky asset, their use of derivatives in India is at a low level. Findings of the study also hint at judgmental bias of practitioners against the use of derivatives. |
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