SYNOPSIS ON

PERCEPTION TOWARDS INVESTMENT IN DERIVATIVE

MARKET


Subject: Finance

Submitted to ISBE in partial fulfillment of the requirements for the award
of the degree of

MASTER OF BUSINESS ADMINISTRATION
Under Professor Zakriya Kaz
By
MOOSA JINAH
Roll No: FW12EA107
2012-2014








TITLE OF THE PROJECT
PERCETION TOWARDS INVEMTMENT IN DERIVATIVES
MARKET

INTRODUCTION
A derivative is a product whose value is derived from the value of one or
more underlying variables or assets in a contractual manner. The
underlying asset can be equity, forex, commodity or any other asset. In
our earlier discussion, we saw that wheat farmers may wish to sell their
harvest at a future date to eliminate the risk of change in price by that
date. Such a transaction is an example of a derivative. The price of this
derivative is driven by the spot price of wheat which is the underlying
in this case.
The Forwards Contracts (Regulation) Act, 1952, regulates the
forward/futures contracts in commodities all over India. As per this the
Forward Markets Commission (FMC) continues to have jurisdiction over
commodity futures contracts. However when a derivative trading in
securities was introduced in 2001, the term security in the Securities
Contracts (Regulation) Act, 1956 (SCRA), was amended to include
derivative contracts in securities. Consequently, regulation of derivatives
came under the purview of Securities Exchange Board of India (SEBI).
We thus have separate regulatory authorities for securities and
commodity derivative markets.
Derivatives are securities under the SCRA and hence the regulatory
framework under the SCRA governs the trading of derivatives.

REVIEW OF LITRATURE
(This one Im not sure it should be here in the synopsis and I need some
help to write the literature review)

NEED FOR THE STUDY
The study has been done to know the different types of derivatives and
also to know the derivative market in India. This study also covers the
recent developments in the derivative market taking into account the
trading in past years. Through this study I came to know the trading done
in derivatives and their use in the stock markets.

OBJECTIVES
1. . To study investors attitude towards stock market investment.
2. To study the investors preferences towards Derivative Market.
3. To study the factors influencing for Derivative Investment.
4. To suggest the improvement of services in Derivative Trading

SCOPE OF THE STUDY
The corporate Exposure & Learning Research on A study of
Perception towards Derivative Market, helps to know the attitude,
awareness, preferences of the investors. Based on this information
stock brokers can carry out further research on specific problems. The
researchers suggestion through this report may be helpful for
stockbrokers to improve their services in stock broking & particularly
in derivative market. The services like counseling, fundamental
analysis, technical analysis can be improved to attract new investors.
This study helps to give value added services & maintain healthy
investor relationship.

METHODOLOGY
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.
SAMPLIMG
To carry out this study questionnaire will be given to individuals in the
Bangalore city. Those will be my sampling units and the study will be
restricted to 30 respondents.
DATA COLLECTION
Both Primary Data and Secondary Data were used for the study.
Primary Data:
Primary data were collected through questionnaires. The selection of
respondents is made on the basis of simple random method of sampling.
The questionnaires are prepared in a structural manner. Also information
was collected from a personal interview with clients.
Secondary Data:
The Secondary data for study has been collected from
Various sources:
Books
Journals
Magazines
Internet sources

PLAN OF ANALYSIS
The data collection, which will be used in this project, will be analyzed
with the help of questionnaires, tables, percentage, charts and graphs.