| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 4 |
NO. 1 |
PAPER 2 |
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GROWTH OF FINANCIAL DERIVATIVES IN INDIA AND ITS IMPACT ON UNDERLYING STOCK MARKET |
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| Keyur M Nayak |
| Principal i/c, R.K.Desai College of Commerce & Management, Gujarat, India |
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| This paper
investigates the growth of financial derivatives in India in terms of
number of contracts traded and turnover at NSE and its impact on
underlying stock market. Earlier studies concluded that introduction of
derivatives resulted either in reducing the volatility or no change in
the volatility, increased efficiency, increase in trading volume and
significant impact of the expiration days of stock futures and options.
This paper generalizes the results offered by the existing studies
conducted in different ways regarding the impact of financial
derivatives on the underlying stock market. The study is based on
secondary data which includes various websites, journals and research
papers published. |
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