N. Subrahmanya Rupesh, LLM, Acharya Nagarjuna University
ABSTRACT
The National Stock Exchange was ranked best in the world for trading individual futures stocks in 2007. Since then, there has been a significant increase in stock futures trading in India. Futures and options instruments have emerged not only for trading purposes, but also to reduce the risk associated with stock price fluctuations. Monthly, bimonthly, and quarterly contracts for index, stock, and option futures expire on the last Thursday of each month. With the introduction of weekly option contracts on the National Stock Exchange for the Bank Nifty and the Nifty Index Option, the potential for studying futures and options has increased. In any economic context, longer-dated options are likely to be more sensitive to the risk of intertemporal change, whereas shorter-dated options are substantially less risk sensitive. The above points highlight the significance of researching the effects of maturity date on futures and options. As a result, the current study aims to provide a thorough assessment of the literature on this subject.
The current paper is divided into three sections. To begin, it intends to present Futures Market. Second, it makes an attempt to elaborate about the Options Market. Thirdly, I have tried to bring out the Issues and Challenges in the Future and Options markets, where I tried my level best to brief it up. Later I have discussed the Indian Scenario with the help of few case laws and in a very elaborative way, and also about the financial arrangements that exercise the control with the help of a case law. Toward the end, efforts were made based on the research to reach a relevant conclusion that may be useful to academics as well as investors, as well as to leave room for future research.
Keywords: Future Markets, Options Market, Over the Counter, SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, SEBI, Chicago Board of Trade.
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