synopsis on derivat

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Appendix 1

Registration for Dissertation Work

1. Name of the student : NARESHA. A.

2. Name of the guide : Prof. SMITA GAIKWAD

3. Proposed research area : FINANCE

4. Proposed research topic : AN ANALYTICAL STUDY OF

DERIVATIVES IN CURRENCYFUTURES WITH REFERENCE

TONSE AT UNICON.

5. Write a brief note on topic

Derivative is a product whose value is derived from the value of an underlying

asset in a contractual manner. The underlying asset can be equity, forex,

commodity or any other asset. The following three broad categories of

participants in the derivatives market.Hedgers,Speculators,Arbitrageurs. Types

of Derivative The following are the various types of derivatives. They are

Forwards, Futures, A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price.Options,

Leaps, Baskets, Swaps.Interest rate swaps Currency swaps.

A contract is that which derives its value from the prices or index of price

underlying securities.The Future segment of NSE provides trading facilities for

the following derivative segment:Index Based Futures,Individual Stock Futures.

Student signature

Approved or disapproved if it is disapproved,the reason for

revision………..

Guide’s signature with date

Research co-ordinator’s signature with date



SYNOPSIS

On

‘AN ANALYTICAL STUDY OF DERIVATIVES

IN CURRENCY FUTURES’

WITH REFERENCE TO

NSE AT UNICON .

Submitted in partial fulfilment of the requirement of theBangalore University for the award of degree of

Master of business administration

Submitted by

NARESHA. A

Reg no.11KXCMA034

Under the guidance of

Prof. SMITA GAIKWAD

Surana college PG centre

Kengeri satellite town

Bangalore -560060.2011-2012



TITLE: AN ANALYTICAL STUDY OF DERIVATIVES IN

CURRENCY FUTURESWITH REFERENCE TO NSE AT

UNICON.

BACK GROUND

A Derivative is a financial instrument that derives its value from an

underlying asset. Derivative is an financial contract whose price/value is

dependent upon price of one or more basic underlying asset, these contracts are

legally binding agreements made on trading screens of stock exchanges to buy

or sell an asset in the future. The most commonly used derivatives contracts arefutures, which we shall discuss in detail later.

The main objective of the study is to analysethe derivatives market in India and

to analyse the operations of futures. Analysis is to evaluate the profit/loss

position futures. Derivate market is an innovation to cash market.

Approximately its daily turnover reaches to the equal stage of cash market

NATURE OF PROBLEM

The present study on futures is very much appreciable on the grounds that it

gives deep insights about thefuture market. It would be essential for the perfect

way of trading infutures. An investor can choose the fight underlying or

portfolio for investment which is risk free. The study would explain the various

ways to minimize the losses and maximize the profits. The study would help the

investors how their profit/loss is reckoned. The study would assist in

understanding the Future segments. The study assists in knowing the different

factors that cause for the fluctuations in the Future market.



OBJECTIVES OF THE STUDY;

1. To study the various trends in derivatives market.

2. To study the role of derivatives in India financial market.

3. To study in detail the role of futures.

4. To find out profit/loss position of the Future writer and future holder by

using marked to market technique.

METHODLOGY OF THE STUDY:

The data had been collected through primary and secondary source. Primary

data collect through Unicon staff,stock brokers and Internet, Newspapers

respectively.

Primary data:

The data had been collected through Unicon staff, Project guide and Stock

brokers. Primary data will be collected through interviews and discussions with

finance and accounts manager .

Secondary data:

The data had been collected through Journals, Newspapers, and Internet.

Secondary data will be collected from financial statements, annual reports, journals, newspapers, magazines & the information available on internet.

DATA ANANLYSIS:

Analysis is based on by using Marked to market technique.Data is represented

by using tables, graphs, and charts are wherever necessary. Usage of statisticaltools and techniques is also undertaken.



LIMITATIONS OF THE STUDY:

1. The study does not take any Nifty Index Futures and International

Markets into the consideration.

2. This is a study conducted within a short period of time ie only 45 days,

hence time is a constraint.

3. During this limited period of studythe study may not be in detailed orfull-

fledged and utilitarian one in all aspects.

CHAPTER SCHEME;

Chapter 1- Introduction:

This chapter includes information of the Derivatives market and various typesand about BSE &NSE &also about the Unicon securities and theoretical

background of research topic.

Chapter 2-Literature review:

Derivative is a product whose value is derived from the value of an underlying

asset in a contractual manner. The underlying asset can be equity, forex,

commodity or any other asset.Securities Contracts (Regulation) Act, 1956

(SC(R).



Chapter 3- Research design:

This chapter provides a plan of the study which includes statement of the

problem, need for study review of the Derivatives are risk management

instruments, which derive their value from an underlying asset. The underlying

asset can be bullion, index, share, bonds, currency, interest etc. Banks,

securities firms, companies and investors to hedge risks, to gain access to

cheaper money and to make profit, use derivatives. Derivatives are likely to

grow even at a faster rate in future.

Chapter 4-Data analysis and interpretation:

This chapter provides an analysis of the data with required interpretation, tables,

graphs, and charts are used wherever necessary.By using method Marked to

market technique. Chapter 5- Findings, conclusion and Recommendations:

This chapter provides major findings, conclusion and offer recommendations

based on the findings.

DURATION OF THE PROJECT:

This project done for the period from 5 weeks to 8 weeks.

synopsis on derivat

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