A Study on Financial Derivatives (Futures and Options) with Special Preference to Indian Derivatives Market

Abstract This paper investigates the growth and function of financial derivatives, particularly futures and options, within the Indian capital markets. Derivatives serve as tools for hedging, speculation, and efficient portfolio management. With the introduction of derivatives in India in the early 2000s, their usage and significance have risen sharply. This study focuses on turnover and contract growth patterns on NSE and BSE, comparing these trends to global benchmarks. Findings indicate that India's derivatives market, though relatively young, has evolved into one of the most dynamic globally. The paper also highlights regulatory frameworks, trading practices, and key market instruments.