| Title | Derivatives as an instrument for management of Market and Credit Risk |
| Publication Type | Journal |
| Year of Publication | 2014 |
| Authors | Nagaraj, H |
| Keywords | Instruments, Markets and Participants, Securities, What, Why and Who use derivatives. |
| Abstract | India is witnessing a wave of Derivatives in Indian Financial Sector as a innovative instrument. Derivatives have been associated with a number of high profile corporate events which have been reasons for breakdown of global financial market. To some critics derivatives have played an important role in the near collapses or bankruptcies of baring banks, But if “properly” handled it can bring substantial economic benefits. The present paper is an attempt to investigate, how the derivatives as a instrument help economic agents to improve their management of market and credit risk. The empirical result obtained indicate what is the main challenge to policymaker and how he can ensure that derivatives are being traded properly and how it can be prudently supervised, and designing regulation and rules that aims to prevent the excessive risk taking of participants, as well to keep track with financial innovative aspects.
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