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VOL. 12, ISSUE 11 (2025)
An empirical study on investor attitude and perception towards Indian equity derivatives market
Authors
Dr. Kondamudi Hanumantha Rao
Abstract
Derivates are the financial instruments whose
value will be derived from other underlying assets. Derivatives are commonly
used by the investors to mitigate risks in the market, speculate, hedge and
arbitrage. These can be traded through exchanges or ‘over-the-counter’. The
FINRA regulates the parties in derivative contracts and the NFA oversees the
derivative markets and parties to derivative contracts. The present study is
about investors’ demographic characteristics and investment attitude about
equity derivative markets. The sample investors for the present study are 250
consisting employees, business people, others includes self-employed. Questionnaire
has been distributed through Google form. Tools like Chi-square and
Komglorov-Smirnov One-Sample Test, Priority Rank Scale with Weightage and
Garret Value Ranking have been applied. Age, education and annual income along
with risk awareness shall have impact on the risk tolerance and satisfaction
levels. It has been found that investors were satisfied with the returns on
their investments in derivatives. Many of the investors were prepared to take
atleast moderate risk for investment. The high prioritised objective of
investment was wealth creation and tax savings, the least. Investors perceive
that Indian derivate market growth is at a moderate rate. Investors were still
lacking correct information due to unfair practices and price manipulations in
the market. Though there is a facility of hedging risks, volatility always
prevails in the derivative market. Investors should be aware about the
strategies while investing in derivatives. Mediators should be loyal because it
is the hard earnings of the investors been invested. Retail investors are to be
educated and be provided correct and valid information to overcome risks beyond
expectations and amplify their returns. Exchanges should the entire time, cog
up to assist the retail investors and take inflexible actions against
fraudulent mediators.
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Pages:83-90
How to cite this article:
Dr. Kondamudi Hanumantha Rao "An empirical study on investor attitude and perception towards Indian equity derivatives market". International Journal of Multidisciplinary Research and Development, Vol 12, Issue 11, 2025, Pages 83-90
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