NEED OF THE STUDY

The study has been done to know the different types of derivatives and especially the Credit Default Swaps. This study covers the Credit Default Swaps in detail, nature of CDS, use of CDS contracts, etc. Through this study I came to know about the Credit Default Swaps contracts in detail.

OBJECTIVES OF THE STUDY

To understand the concept of the Derivatives. To know different types of Financial Derivatives. To know about Credit Derivatives. To know more about Credit Default Swaps and its uses. To understand the mechanism of CDS contracts. To know about ISDA (International Swap and Derivative Association) and its various credit events. To know the settlement process of CDS contracts.

RESARCH METHODOLOGY Research is a procedure of logical and systematic application of the fundamentals of science to the general and overall questions of a study and scientific technique by which provide precise tools, specific procedures and technical, rather than philosophical means for getting and ordering the data prior to their logical analysis and manipulation. Different type of research designs is available depending upon the nature of research project, availability of able manpower and circumstances. The study about "Credit Default Swaps" is descriptive in nature. So survey method is used for the study.

RESEARCH DESIGN Non probability The non probability respondents have been researched by selecting the persons who do the trading in derivative market. Those persons who do not trade in derivative market have not been interviewed.

Exploratory and descriptive research The research is primarily both exploratory and descriptive in nature. The sources of information are both primary and secondary. The secondary data has been taken by referring to various magazines, newspapers, internal sources and internet to get the figures required for the research purposes. The objective of the exploratory research is to gain insights and ideas. The objective of the descriptive research study is typically concerned with determining the frequency with which something occurs. A well structured questionnaire was prepared for

the primary research and personal interviews were conducted to collect the responses of the target population.

SAMPLING METHODOLOGY

Sampling Procedure The small representative selected out of large population is selected at random is called sample. Well-selected sample may reflect fairly, accurately the characteristic of population. The chief aim of sampling is to make an inference about unknown parameters from a measurable sample statistics. The sample size was 30 which includes employees of Eclerx Services Limited.

Sampling Technique Initially, a rough draft was prepared a pilot study was done to check the accuracy of the Questionnaire and certain changes were done to prepare the final questionnaire to make it more judgmental.

Sampling Unit The respondents who were asked to fill out the questionnaire at Eclerx Services Limited are the sampling units. These respondents comprise of the persons dealing in derivative market.

Sample Size The sample size was restricted to only 30 respondents.

Sampling Area The area of the research was employees of Eclerx Services Limited, Airoli branch.

Time: 2 months Statistical Tools Used: Simple tools like bar graphs, tabulation, pie diagrams have been used.

SOURCES OF DATA The sources of data includes primary and secondary data sources. Primary Sources: Primary data is collected by structured questionnaire administered by sitting with guide and discussing problems. Secondary Sources: The secondary data is data, which is collected and compiled for the different purpose, which are used in research for this study. The secondary data include material collected from: Newspaper Magazine Internet Data collection instruments The various method of data gathering involves the use of appropriate recording forms. These are called 'tools' or 'instruments of data collection. Collection Instruments: 1. Observation 2. Interview guide 3. Interview schedule

Methodology Assumptions: The research was based on the following assumption: 1. The methodology used for this purpose are survey and questionable method. It is assumed that this method is more suitable for collection of data. 2. It is assumed that the respondent have sufficient knowledge to ensure questionable. 3. It is assumed that the respondent have filled right and correct option according to their view.