After Effects of Global Financial Crisis on Indian Derivatives Market

This project tries to analyze the impact of global financial crisis on the financial derivatives market in India. It is found that the global financial crisis of 2008 has structurally altered the composition of financial derivatives market in India. The predominance of single stock futures as a derivative product has now been replaced by the predominance of Index option as a favorite derivative product in India. The speculative nature of single stock futures has been the prime reason for the dominance of this derivative product in the pre-crisis period. However, the cautious risk-aversion on the part of the investor has now been the reason for the dominance of Index options in this post-crisis period. Such domination of derivative products is not a healthy sign for the derivatives market in India