A

SUMMER INTERNSHIP PROJECT REPORT

ON
“A STUDY ON INVESTORS PERCEPTION TOWARDS
THE DERIVATIVE MARKETS”
AT
ZERODHA
Submitted to
Institute code 807
SAL INSTITUTE OF MANAGEMENT
UNDER THE GUIDENCE OF
Prof. bindiya chhaya baxi
In partial fulfilment of the Requirement of the award of the
degree of
Master of business administration (MBA)
Offered by-
Gujarat technological university
Ahmadabad
Prepared by-
Jimit raval
[208070592074]

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 STUDENT’S DECLARATION:

I hereby declare that the Summer Internship Project Report titled “A STUDY ON INVESTORS
PERCEPTION TOWARDS THE DERIVATIVE MARKETS”
. Is a result of my own work and my indebtedness to other work publications, references, if any,
have been duly acknowledged If I am Found guilty of copying from any other report or
published information and Showing as my original work, or extending plagiarism limit, I
understand that I Shall be liable and punishable by the university, which may include ‘Fail’ in
Examination or any other punishment that university may decide.

Enrolment no. Name Signature

208070592074 Jimit raval

PLACE :   
AHMEDABAD                                                                      Date:

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3|Page
 Date: / /2021

“This is to Certify that this Summer Internship Project Report Title

“……………………………………………………………………………………………………
…… …………….” is the Bonafede work
of____________________________ (____________), who has
carried out his / her project under my supervision. I also certify
further, that to the best of my knowledge the work reported
herein does not form part of any other project report or
dissertation based on which a degree or award was conferred on
an earlier occasion on this or any other candidate.

I have also checked the plagiarism extent of this report which is ……… % and it is below the
prescribed limit of 30%. The separate plagiarism report in the form of html /pdf file is
enclosed with this.

Rating of Project Report [A/B/C/D/E]: ______

(A=Excellent; B=Good; C=Average; D=Poor; E=Worst)

(By Faculty Guide)

Signature of the Faculty Guide/s

Prof. bindiya chhaya baxi

(Assistant Professor)

Signature

CERTIFICATE OF EXAMINER
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 This is to certify that project work embodied in this report entitled
“A STUDY ON INVESTORS PERCEPTION TOWARDS THE DERIVATIVE
MARKETS”

with special reference of

Zerodha brokerage ltd.

Jimit raval
(208070592074)

OF SAL INSTITIUTE OF MANAGENT (807)

Comment of external examiner

This report is for the partial fulfilment of the requirement of the award of the degree of Master of
Business Administration offered by Gujarat Technological University

. --------------------------

(Examiner’s Sign)

Name of Examiner:

External Examiner’s Institute Name:

External Examiner’s Institute Code

ACKNOWLEDGEMENT

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“It is not possible to prepare a project report without the assistance
&encouragement of other people. This one is certainly no exception. “On the very
outset of this report, I would like to extend my sincere & heartfelt obligation
towards all the personages who have helped me in this Endeavour. Without their
active guidance, help, cooperation & encouragement, I would not have made
headway in the project.

I am extremely thankful and pay my gratitude to Our Director DR. VIRAL BHATT
for arranging the Summer Training in good schedule.
I also extend my gratitude to my Project Guide my faculty guide Prof. bindiya
chhaya baxi for her valuable guidance and support on completion of this project
in it’s presently.

I extend my gratitude to SAL INSTITUTE OF MANAGEMENT for giving me this

opportunity.
I also acknowledge with a deep sense of reverence, my gratitude towards my
parents and member of my family,
who have always supported me morally as well as economically
At last but not least gratitude goes to all of our friends who directly or indirectly
helped me to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude .

Index
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 No. Topic
1 Introduction

2 Company overview

3 Literature review

4 Research methodology

5 DATA ANALYSIS & INTERPRETATION

6 FINDINGS & SUGGESTIONS & CONCLUSION

7 LEARNING OF SIP

8 BIBLOGRAPHY

9 QUESTIONNAIR

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 Introduction

1.1 what is stock market?

The stock market refers the combination of different markets and exchanges at where
the Dailey buying, selling and issues of shares of publicly held companied will take place.

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 This kind of financial activities are conducted through institutionalized normal
exchanges or over-the-counter [OTC] marketplaces which are operated under a fixed set
of rules and regulations. In stock market there can be numbers of stock treading venues
In a country or a region who allows exchanges or transactions in stocks and other
exchanges.

While both terms stock market and stock exchange are used similarly, the stock
exchange is generally a subset of the stock market. If someone says that he is
trading in the stock market, it means that he is buying and selling shares and
equities are on one or another stock exchanges which are the part of the overall
stock market.

As it is called a stock exchange or equity market and it is also known for trading of
stocks or equities or also other financial securities like exchange traded funds
[ETF] or corporate bonds and derivatives based on stocks, commodities,
currencies, and bonds which all are also traded in the stock markets.

1.2 what is derivative market?

The word derivative represents to a type of financial contract which value is

depended on an underlying asset, group of assets and benchmark. A

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 derivative is platform between two or more traders who can trade on an
exchange or over-the-counter (OTC). These deals can be used to trade
whatever number of assets and carry with their own risks. Prices of
derivatives comes from fluctuations in the fundamental asset. These all-
financial securities are particularly used to operate fix markets and can be
traded to hedge against risk.

A derivative is a complicated type of financial security that is key platform

between two or more traders. Traders use derivatives to access the
particular markets and trade particular assets. The most frequent underlying
assets of derivatives are stocks, bonds, commodities, currencies, interest
rates, and market indexes. Contract prices are depended on fluctuations in
the prices of the underlying asset.

1.3 financial service industry overview

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 The financial service industry covers large range of firms
and Institution which deals with cash balance, as well as
industries providing cash management, lending, investing.
insuring and securities supplying and trading services. the
subsequent Institution are one of the parts of financial
industry

Securities
traders

Insurance Investment
companies bankers

Financial
Service
Industry

Credit card
issuers Financial
planners

Banks

1.4 financial industry history

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 The vital events that have formed the Morden financial industries

• The Great Depression (1929)

The Great Depression arise within the United States with the Wall Street strike in October
1929. the impact of period of time unfolds across the world, specially within the big
industries. Capital Require regulation, Financial Industry oversights and also the insurance
of deposit accounts awoke of this critical Period.

• Black Monday (1987)

On October 19, the stock markets across the world witnessed a big crash. This was biggest
crash in the securities market past performance. The decline begins in Hong Kong,
spreaded to Europe and also the United States. Analysts hold responsible computer
trading systems for magnifying the losses.

● Asian Financial Crisis (1990s)

The Asian Financial strikes was set of by the collapse of Thai baht as the government of
Thailand decided to float the national currency of Thailand. The country had a huge
foreign debt at that point of time. Heading it to the way of bankruptcy. The crisis
spreaded across the whole of Southeast Asia and has led to many ongoing market
countries to lower debts and create foreign currency reserves.

● Stock Market Downturn (2002)

Stock exchanges around the global are witnessed compelling collapse in March 2002. It
was allocated to the bursting of the 'Dot-com Bubble', which saw major Internet
industries are being bankrupt.

● Sub-prime Crisis (2007)

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 Credit markets have suffered major collapse due to high scale default on loans. It heads to
the Financial Crisis of 2008-2009 and which resulted in the fire-sale, bankruptcy
acquisition and government bailouts of finance companies such as Lehman Brothers. Bear
Stearns, AIG, Fannic Mae. Merrill Lynch, Freddie Mac, Wachovia, Northern Rock. Lloyds
TSB. HBOS. RBS and the whole banking system of Iceland. The global economy can expect
reduction of growth rates and tighter rules and regulations as a impact of this crisis.

1.5 major players

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 As per the Global 2000 (annual report by Forbes), from the world’s top 10 companies
seven of the companies belongs to the financial industry. Which included Bank of
America, Citigroup ,HSBC Holdings or JPMorgan Chase. This all companied combined
revenues in 2007 were worth $645 billion which are less then 2006 high of $785 billion.

In 2006 As per the Fortune 500 rankings, financial services are generated $257 billion in
profits which are the total of a third of total Fortune of 500 profits. In 2008, fortune 500
lost a $213 billion, a total swing of $470 billion. Big players on the list, like Citigroup and
Bank of America, is now only be alive today wich are thanks to the government money.
The finance industry is an industry which itself supports other industries.

1.6 Indian capital market

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 1.6.1 Introduction of stock exchange
Stock exchanges are associated organized marketplace for buying and selling for
Mercantilism Company and alternative securities. In stock exchanges securities area units are
trade out as per SEBI's rules and regulations undergo the government of Bharat. SEBI's provides
a flexible Structure or platform for trading in particular securities. Such securities holds shares
and debentures which are issued by public firms that area unit perfectly listed at the stock
market, and debentures and bonds issued by government, public companies and municipal.
stock market is also play a important role as indicators, reflective the performance of the
country's economic state of health. it's exposed to a high rate of volatility. costs fluctuate within
the minutes and area unit explained by the demand and provide of stocks at a given particular
time.
brokers are the persons trades securities on place of individuals and institutions in exchange of
some commission. In recent time a Foreign institutional investor (FII) is investing in Indian stock
market on very large scale. A Liberal economic policies which are created by Government which
helped to attract many foreign institutional investors towards large scale. after US India hosts,
the huge number of the listed companies. The world wide investors now treat India as
preferred location for their investment. Stock market are now also appears to the middle class
Indians. Most of the Indians which are working in different countries invest their money in
Indian stock market.

1.6.2 Definition of stock exchange:

Stock Exchange is an organised market for purchase and sale of industrial and
financial Securities.

Or
It is a place where shares of pubic listed companies are selling securities and investor
are buying securities.

1.6.3 meaning

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 Stock market exchanges is one importent constituent of securities market, capital
market is merged organized marketplace for the purchase and sale of the money and economic
security. it's acceptable place wherever trading in securities is conducted in well systematic
manner for an example, as per rules of SEBI. Which performs different functions and offers
helpful services to traders and borrowing corporations. it's associate investment negotiator and
facilitates economic and industrial development of a rustic. The stock exchange are divided
into two parts

● Primary market
● Secondary market

1.6.3.1 primary market

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 Stock market

Primary market

Secondary
market
IPO BOND

Derivative Currency Commodity

Equity market
market market market

Primary market is that the place at wherever the shares are offered or issued for the primary
time. So once an organization is obtaining listed for the primary time at the stock market and
provision shares. this method is commenced at the starting or first market. It means the
method of Initial Public providing (IPO) and after that the debentures are controlled at the first
stock exchange.

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Primary market is collaborated degree intermittent and sole market wherever the initial listed
shares area unit listed 1st time, ever-changing hands from the listed companies to the investors.
It represents to the procedure through that the businesses, the issuers of stocks, acquire capital
by offering their stocks to traders World Health Organization provide the capital. In other
words, primary market is that a part of the capital markets which deals with the issuing of
current securities.
Public sector, companies or government establishments will get capital through the sale of a
Bond certificates or replacement stock. within the case of a replacement issuing, this sale is
known as an initial public providing (IPO).

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1.6.3.2 secondary market

The secondary market is the stock exchange at where the existing stocks are traded by the
retail investors with the help of the brokers. the secondary market controls the worth of the
stocks. Usually , we tend to once we after we discuss investment or trade at the stock exchange
we mean trade at the secondary stock exchange. The secondary market is the place at where
public can invest or trade in stocks to get the advantages of the stock exchange investments.

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 1.7 Main Exchange of Indian Equity and Commodity Market

1.7.1 BSE(Bombay Stock Exchange)

● BSE was established in 1875.

● The beginning of Indian stock trading starts with the 318 person taking membership in Stock
Brokers Association and Native Share, which is also known by name as Bombay Stock Exchange
(BSE).
● BSE Asia's first & the Fastest Stock Exchange in world with the speed of 6 micro seconds and
one of India's leading exchange groups. Over the past 141 years.
● The bourse was established as "The Native Share & Stock Brokers' Association" in 1875
● BSE has facilitated the growth of the Indian corporate sector by providing it an efficient
capital – raising platform.

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●BSE provides an efficient and transparent market for trading in equity, currencies, derivatives,
mutual funds, debt instruments.
● BSE is also the 1st listed stock exchange of India.
● BSE is also the platform for Treading is small-and-medium enterprises (SME).
● BSE provides a lots of other services to the capital market traders which are including risk
management , clearing, settlement, market data services and education.
● BSE is the second in the world and first exchange in the India to obtain an ISO 9001:2000
certification.
● BSE is also the second in the world and the first exchange in the country to receive
Information Security Management System Standard BS 77992-2002 certification for its On-Line
Trading System (BOLT).
● BSE has a world wide reach with customers around the global and a nation-wide presence.
● BSE's popular equity index - the S&P BSE SENSEX - is country’s most widely tracked stock
market benchmark index.
●BSE also offers depository services through its Central Depository Services Ltd. (CDSL) arm.

1.7.2 NSE (National Stock Exchange):

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 ● NSE was established in 1992.
● NSE was given the recognition of stock exchange in April, 1993.
● NSE is the leading stock exchange in India.
● NSE is also the fourth largest stock exchange in the world by equity trading
volume in 2015.

● NSE started operations in 1994

● since 1995 NSE ranked as a largest stock exchange of Indian in terms of total and
daily turnover of equity shares. Which is based on annual reports of SEBI.

● NSE introduced capital market segment in November 1994 as a trading platform

for derivatives trading and equity or internet trading in 2000.

●NSE has a fully-integrated business model connecting our exchange trading,

listing, services, clearing and settlement services, indices, market data feeds.

● NSE also oversees compliance by clearing and trading members and listed
companies with the rules and regulations of the exchange.

●NSE is a middleman in insurance and technology the reliability and performance of

its systems through a culture of innovation and investment in technology .

1.7.3 Multi Commodity Exchange (MCX)

● Multi Commodity Exchange of India limited is a new order exchange with mandate
for setting up a online multi-commodity marketplace, nationwide, providing unlimited growth
opportunities to commodities market traders.
● Multi Commodity Exchange , an independent and a de-mutualized exchange since
inception, is all set up to introduces a state of the art, online digital exchange for commodities
futures trading in the country and has accordingly initiated some steps to transfer this vision
into real life.

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 1.7.4 National commodities and Derivatives Exchange
(NCDEX):

● NCDEX has started working on 15th December 2003.

● NCDEX provides facilities to their clearing and trading member at different 130
centres for contract.
● speculators, hedgers and arbitrageurs are the main participants of commodity
market.
● NCDEX is one of the national commodity exchange, which is constructed based on
the present national institute the exchange has been established with the coloration of leading
institutes like NABARD, LIC, NSI etc...

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 1.8 Current trend in Stock Exchange

 IPO
initial public offering (IPO) provides investors the chance to invest early
in companies shares and gain higher investment return in a short time period.

 Online trading
Now the time everyone wants everything at their fingertips for the
treading in various investment market with well structured facilities.

 Equity and Derivatives

For the long term returns a one should invest in to the stocks. or take the
high risk of entering the derivatives segment for lucrative returns.

 Depository services
for online shares trading we are registered as a depository participant
with CDSL to the best online trading experience of demat account holders as a
reputed depository participant.

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 1.8 porter five forces model

Intensity of
Existing
Rivalry

Bargaining Threat of Bargaining

Power of New Power of
Suppliers Competitors
Customers

Threat of
Substitutes

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  Threats of New Entrants
New entering generation in Financial Services comes with innovation, new ways by
doing things and put pressure on Discover Financial Services through lower
evaluation strategies. providing new price propositions and reducing expenses to
the purchasers. Innovation of Financial Services should manage of these challenges
and create effective barriers to safeguard its competitive edge.

 Bargaining Power of Suppliers

Most of all the companies in to the financial service industry collect their raw
material from the various suppliers. Suppliers who are in dominant position will
reduce the margins and Discover Financial Services will earn within the market.
Powerful suppliers in to the financial industries use their negotiation power to
Get the higher prices from the different firms in financial service industries.

 Bargaining Power of Buyers

Buyers are usually demanding a lots. they require to shop for the simplest offerings
obtainable by paying the minimum value as possible. This put the pressure on
finding Financial Services profitability profitableness within the long term time. The
smaller and powerful the client base is of founded Financial Services the moreover
the bargaining power of the buyers and better their capacity to seek higher
discounts and offers.

 Threats of Substitute Products or Services

When a brand new service or product meets a particular customer wants in
particular ways. Companies profitability suffers. For an example services like Google
Drive and drop box are substitute to storage hardware drives. The threat of a
substitute product or service is more if it offers a value proposition that is uniquely
different from recent offerings of the company.

 Rivalry among the Existing Competitors

If the rivalry among the existing players in an industry is higher then it will lower
down prices and lower the overall profitability of the company. Find out Financial
Services operates in a very competitive Credit Services industry. This competition
does take toll on the whole long term profitability of the industry.

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 Company overview

Zerodha broking ltd.

Slogan:

The discount brokerage

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 2.1 Introduction to Zerodha

Zerodha have started their operations on 15th august, 2010. Zerodha’s disruptive
and special Price models or in-house technology have helped them to became
India’s number one stock broker in terms of active retail clients.

In Zerodha there are more than 6+ million clients who places millions of orders
everyday with the help of their powerful echo system of investment platforms.
Zerodha is contributing over the 15% of all the endian retail trading volume.

Zerodha also run so many popular community initiatives and online education to
courage retail investors and traders.

 Zerodha includes:
• Equity
• commodity
• future & options
• mutual funds
• sip’s

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2.2 Mission and vision of Zerodha broking.

 Mission
The main mission of Zerodha is to break all the barriers faced by an Indian investors
and traders for trading In terms of cost, Technology and support.

 Vision

Zerodha is firmly committed to working Towards their vision of creating a

brokerage-free world for the benefit of most Important stake holders
when it is comes to the financial

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2.3 organizational hierarchy

Founder

Nithin Kamath

Director Director Director

Nikhil Kamath Seema patil Shrikant pandit

General
manager

Vise president

Assistant vise
president

Branch
manager

Area sales
manager

Sales manager

Team leader

Business develop
management

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2.4 swot analysis

Strength

Threats SWOT Weaknesses

Opportunities

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Swot analysis

 Strength
• Zerodha is the largest stock broker by active clients.
• Zerodha is the one of the safest, reliable and trustworthy stock broker.
• Zerodha offers the most advanced trading tools.
• Zerodha is suitable for all the kinds of investors whether it is active or passive
or beginner it is suitable for all.

 Weakness
• slow account opening process.
• Zerodha covers only Indian market.

 Opportunities
• all kind of trading services like mutual fund’s SIP, commodity, futures &
option, etc.
• Technologically Zerodha is 1st brokerage firm.

 Threats
• companies like Upstox, 5paisa, Angel broking are the biggest competitor of
Zerodha.
• Taxes and duties kind of government regulations.
• SEBI guideline changes.
• Local brokers who are with lower brokerages.

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2.5 STP Analysis

Segment - Brokerage.

Target - All stock market, mutual fund, Equity, etc. Investors in India.
Positioning - India’s number one stock broker company in terms of active
clients.

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 2.6 Major competitors
• Upstox
• Angel broking
• Icicidirect
• Groww
• 5 paisa
• Hdfc securities
• Kotak securities
• Sharekhan
• Motilal oswal
• Axis direct
And many more......

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2.7 Product’s of Zerodha

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2.8 Brokerage structure of Zerodha.

Segment Brokerage fees

Equity delivery 0 rs.

Equity intraday 20 rs. Or 0.03% which
ever is lower.
Equity futures 20 rs. Or 0.03% which
ever is lower.
Equity options 20 rs.

Currency futures 20 rs. Or 0.03% which

ever is lower.
Currency options 20 rs. Or 0.03% which
ever is lower.
Commodity futures 20 rs. Or 0.03% which
ever is lower.
Commodity options 20 rs. Or 0.03% which
ever is lower.

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 2.9 Reason why you should choose Zerodha.
• Zerodha is providing Rs 0 Equity delivery and direct mutual funds.
• Zerodha has no upfront fee or turnover commitment.
• Zerodha has lowest brokerage in compare to other brokerage firms.
• Zerodha is India’s number one brokerage firm in terms of active clients.
• Zerodha has highest success ratio in both fundamental and technical calls.
• Zerodha having highest customer satisfaction ratio.
• Zerodha provides all trading facilities Equity, options, mutual funds, etc.
And many more reasons to choose Zerodha.

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 Literature
Review

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• According to research of Dr. Babaraju. K Bhatt (2014)

“investor's perception towards derivatives as an Investment Avenue.” Dr.

Babaraju have chosen the convenience method of sampling to collect the data
from the respondents. Dr. Babaraju have selected 100 samples. They have
selected retail investors as a sample.
The result of Dr. Babaraju’s study indicates that investors are considering
many factors like guidelines of financial advisor, risk management, Broker hedging
fund, Even their own knowledge about the financial product and the volatility in
to the security markets to take the investment decision in to the derivative
markets.

• According to research of Mr. Venkatesha. R and Dr. Hiriyappa.

(2011)

“ study on investor perception on derivative market. ” The past of derivatives is

not a new thing for the developed countries but it can be new for the developing
countries. This paper has studied the customers perception towards the
investment in NSE and BSE derivative markets. The data have been collected
through the questionnaire. 150 samples have selected for the study.

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• According to the research of Y. Nagaraju (2014)

“investors' perception towards derivative instruments and market” in this study

Y. Nagaraju have concluded that before making any kind of investment the
investor should determining the factors of risk And should take effective
measurements For taking decision regarding investment in any financial
instrument.

• According to the research of D.V.Gakhar (2016)

“ study on Impact on Volatility and Investor Perception” In this study D.V Gakhar
find out that investors Investment decision, investors awareness and investors
risk taking abilities In to the derivative instruments play an important role in the
development of the derivative market’s trading activity.

• According to the research of Gopal Krishna U M (2019)

“ Investors investment behaviour and risk taking ability on various investment

avenue” the study of Gopal Krishna explores the capacity of risk behind the any
financial instruments in to the capital market.

• According to the research of Indu gautam and PC kavidayal (2016)

“ Perception of Market Participants towards Derivative Trading” in this study they

have focused in the some of the past data of the volatility in to the derivative
market and effect of that on investors. This study also indicates that the investor
more focuses on the past data and past performance of the financial market.

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 • According to the research of K. Sarathkumar and Dr. SP.
Dhandhayuthapani (2016)

“ Indian derivative market with reference to investor's Attitude” In this study they
investigates the attitude of investors for the investment in to the derivative
market. They have tried to Analyse and identify the key factors that affect the
investors to invest in to the derivative market.

• According to the research of Mrs. E.V.P.A.S Pallavi and Dr.T.Kama

Raju (2014)

“ Empirical analysis on perception of retail investor towards Derivative market.” In

this research they have concluded that The Indian derivative market is the witness
of the tremendous growth in India. The institutional and retail investors have
played an important role in the development of derivative trading in to the India.
Retail investors are the main participant of derivative market their contribution is
52% higher than the institutional investors.

• According to the research of S. T. P. Raghavan and Aravind Sigh

Tamar ( 2017 )

“ an Empirical Analysis on Perception of Retail Investors Towards Derivatives

Market” This research indicates that the derivative market has played an
important role in development of the country. The objective of their study is
derivative market prospects and problems and identified the solution of all of
that.

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• According to the research of Sandeep S., Surendra Y.S. (2008).

“ Trading of derivatives in Indian stock market a study through brokers

perception.” In their research study implemented a survey of brokers in the
recently introduced derivatives markets in India to find out the broker‘s involment
of market activity and their perception of the costs of derivative Trading.

• According to the research of Das, B., & Mohanty, S (2008).

“ .Mutual Fund vs. Life Insurance: Behavioural Analysis of Retail Investors.” In this
study they have found that Different investment places are do not provide the
same level of satisfactions.

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 Research
Methodology

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  Statement of problem
• less awareness about the derivative market in India.
• People mind set about derivative market that it is very risky.

 Objectives
• to study the investors perception towards investment in to the derivative
market.
• To aware the citizens of India about derivative market.
• To find out different type of financial derivative.
• To find out the participants of the derivative market.

 Limitations
Due to limited time period only 100 sample of respondents were observed.

 Types of Research Design:

Descriptive research Design will be used in the currunt study. Descriptive

study is a fact-finding investigation with adequate interpretation. It is the
simplest type of research and is more convenience. specifically designed to
gather descriptive information and provides information for formulating more
sophisticated studies.

 Sampling method:

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 . Convenience method of sampling will be used to collect the data from the
respondents.

 Sampling unit:

Investor from Ahmedabad city who invest in Stock market.

 Sampling size:

100 respondents will be collected

 Data collection method:

. Data collected through questionnaire

 Tools:

. SPSS Software used for analyse data

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 DATA
ANALYSIS

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 1. FREQUENCY ANALYSIS
GENDER

Frequency Percent Valid Percent Cumulative Percent

Valid Female 42 40.8 40.8 40.8

Male 59 57.3 57.3 98.1

Others 2 1.9 1.9 100.0

Total 103 100.0 100.0

Understanding:

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. From the Above the outcomes we can infer that the individuals who are putting resources into
financial exchange 70% of them are guys and just 30% are Females who are effectively
partaking in the Derivative market.

Age

Frequency Percent Valid Percent Cumulative Percent

Valid 18 to 25 85 82.5 82.5 82.5

26 to 35 13 12.6 12.6 95.1

36 to 50 4 3.9 3.9 99.0

Above 50 1 1.0 1.0 100.0

Total 103 100.0 100.0

Understanding:

Subsequent to aggregating the information on time of financial backer who bargain in

Derivative market. It found that greater part of financial backer go under youthful age gathering

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and middle age Group. Since youthful and Middle age bunch hazard taking limit high was Here
according to Survey technique the Group of 18 to 25 age is 53%, 25 to 40 age is 31%, 40 to 50
age is 12%, while over 50 age is 4% are putting resources into Derivative market.

Educational qualification

Cumulative
Frequency Percent Valid Percent Percent

Valid Graduate 51 49.5 49.5 49.5

Other 2 1.9 1.9 51.5

Post graduate 27 26.2 26.2 77.7

Professional Degree holder 2 1.9 1.9 79.6

Under Graduate 21 20.4 20.4 100.0

Total 103 100.0 100.0

Understanding:

49 | P a g e
  From this diagram it is very evident that the majority of the financial backer are taught
(generally Graduate and Post alumni), since they are knowing methodologies and
advantages of Derivative market.
 According to the study technique there are under graduate individuals are 14%, graduate
individuals are half, Post alumni individuals are 32%. Proficient degree holder 3%.
furthermore, other

Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid Business 16 15.5 15.5 15.5

Homemaker 1 1.0 1.0 16.5

Others 7 6.8 6.8 23.3

Profession 12 11.7 11.7 35.0

Student 67 65.0 65.0 100.0

Total 103 100.0 100.0

Understanding:

This shows that enormous piece of populace who are in help are putting more in Derivative
market with the end goal of High return. Since in the Service area their pay is restricted so that
for the high procuring they are putting resources into Derivative market. Then, at that point,
after populace of financial specialist are putting resources into additional in Stock market. The

50 | P a g e
populace who are in Profession and Other they are less putting resources into Derivative
Market.

Yearly income

Cumulative
Frequency Percent Valid Percent Percent

Valid 200000 to 500000 25 24.3 24.3 24.3

500000 to 1000000 8 7.8 7.8 32.0

Above 1000000 5 4.9 4.9 36.9

Upto 200000 65 63.1 63.1 100.0

Total 103 100.0 100.0

Understanding:

 It can obviously evaluate that greater part of respondents under study are in the Middle
Class Group i.e., who acquire Up to 200000 and 200000 to 500000 yearly pay for High
procuring.

51 | P a g e
  While center privileged individuals are less putting resources into Stock market.
According to the information we can say that individuals who are in working class they
are attempt to procure benefit structure the Derivative market.

Your Investment Objective

Cumulative
Frequency Percent Valid Percent Percent

Valid Future welfare 27 26.2 26.2 26.2

High return 42 40.8 40.8 67.0

Other 15 14.6 14.6 81.6

Retirement plan. 7 6.8 6.8 88.3

Tax benefit 12 11.7 11.7 100.0

Total 103 100.0 100.0

Understanding:
 As per the above given table the main objective for any person to invest in to the
derivative market is to get higher return as there is high rate of return and with compare

52 | P a g e
 to that the rate of return is also high so every individual is investing for high rate of
return.

Investment Portion of your income in stock market

Cumulative
Frequency Percent Valid Percent Percent

Valid 11% to 15% 20 19.4 19.4 19.4

16% to 20% 2 1.9 1.9 21.4

5% to 10% 40 38.8 38.8 60.2

Above 20% 4 3.9 3.9 64.1

Less than 5% 37 35.9 35.9 100.0

Total 103 100.0 100.0

Understanding:

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• Majority of the respondent are invest 5% to 10% of their income because of majority Middle
level respondent are investing. So them saving portion is low so that majority of respondent are
investing 5% to 10% of their income in Stock market.

Risk taking capacity

Cumulative
Frequency Percent Valid Percent Percent

Valid High 20 19.4 19.4 19.4

Low 25 24.3 24.3 43.7

Medium 58 56.3 56.3 100.0

Total 103 100.0 100.0

Understanding:

According to this information for the most part respondents hazard taking limit is low in light of
the fact that for the most part Middle level respondents are contribute. while not many
individuals are having High danger taking limit

54 | P a g e
According to this information 55% respondent danger taking limit is medium, while 31%
respondent danger taking limit is Low and 14% respondent danger taking limit is high

From where you get your investment advices

Cumulative
Frequency Percent Valid Percent Percent

Valid Family 25 24.3 24.3 24.3

Financial advisor 30 29.1 29.1 53.4

Friends 18 17.5 17.5 70.9

Other 13 12.6 12.6 83.5

Social media 17 16.5 16.5 100.0

Total 103 100.0 100.0

55 | P a g e
 Understanding

According to the overview generally Respondent are accept Investment counsel from the
Advisor, and barely any Respondent are taking Advice from Family and Other. There are 40%
respondent take Advice from the Advisor. 25% respondent take Advice from the Friends. !8%
Respondent from the Other, and 17% respondent from the Family.

Do you have any idea about Derivative markets

Cumulative
Frequency Percent Valid Percent Percent

Valid No 39 37.9 37.9 37.9

Yes 64 62.1 62.1 100.0

Total 103 100.0 100.0

Understanding:

56 | P a g e
  The above findings describes that there are 62 out of 100 peoples are aware about the
derivative market that what derivative markets are stands for

If yes, how do you come to know about Derivative Market

Cumulative
Frequency Percent Valid Percent Percent

Valid Family 15 14.6 14.6 14.6

Financial advisor 15 14.6 14.6 29.1

Friends 21 20.4 20.4 49.5

Others 28 27.2 27.2 76.7

Social media 24 23.3 23.3 100.0

Total 103 100.0 100.0

57 | P a g e
Understanding:
 The graph shows that usually all factors are responsible for spreading awareness about
the derivative markets but he main factor which affected most to the spread of
derivative markets knowledge is social media.

Which of the following Derivative instrument do you dealing

Cumulative
Frequency Percent Valid Percent Percent

Valid Stock future 51 49.5 49.5 49.5

Stock future, Stock index future 2 1.9 1.9 51.5

Stock future, Stock index future,

Stock options, Stock index 2 1.9 1.9 53.4
options

Stock future, Stock index options 1 1.0 1.0 54.4

Stock future, Stock options 6 5.8 5.8 60.2

Stock future, Stock options,

1 1.0 1.0 61.2
Stock index options

Stock index future 10 9.7 9.7 70.9

Stock index future, Stock index

2 1.9 1.9 72.8
options

Stock index future, Stock options 1 1.0 1.0 73.8

Stock index future, Stock

1 1.0 1.0 74.8
options, Stock index options

Stock index options 6 5.8 5.8 80.6

Stock options 20 19.4 19.4 100.0

Total 103 100.0 100.0

58 | P a g e
Understanding:

The above graph shows that there is most number of investors are interested in to investment
in to the stock future and stock options as this are the one of the famous derivative index to
invest in.

59 | P a g e
 You participate in Derivative market as

Cumulative
Frequency Percent Valid Percent Percent

Valid Arbitrator 15 14.6 14.6 14.6

Hedger 8 7.8 7.8 22.3

Other 39 37.9 37.9 60.2

Speculator 41 39.8 39.8 100.0

Total 103 100.0 100.0

Understanding:

 The chart or analysis clearly shows that there are most of the number of investors
participate in to the derivative markets as a speculators as this is riskiest or more return
giving instrument.


60 | P a g e
 1. DESCRIPTIVE ANALYSIS

Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

Give your views on some

terminology in derivative market
104 1 5 2.01 1.019
[Is derivative market future
oriented?]

Give your views on some

terminology in derivative market
104 1 4 2.21 .867
[Is Derivative Market useful to
earn profit rapidly]

Give your views on some

terminology in derivative market
[Derivative Market is More risky 104 1 5 2.31 1.053
as compared to the cash
market ]

Give your views on some

terminology in derivative market
[Purchasing High amount of lot 104 1 5 2.52 1.052
to paying low margin]

Give your views on some

terminology in derivative market
[Ownership is not transfered in 104 1 5 2.32 .938
derivative market.]

Give your views on some

terminology in derivative market
[Transaction cost is low in 104 1 5 2.50 .975
derivative market as compared
to cash market.]

Valid N (listwise) 104

61 | P a g e
  Respondents Strongly Agree with Derivative market is Future Oriented and More
hazardous.

 Respondents are concur with Derivative market helpful to acquire benefit quickly
Respondent additionally concur with Derivative market is Useful to limit misfortune and
move

 hazard one individual to someone else

Respondent are additionally concur with in the Derivative market exchange cost is low:

62 | P a g e
 2. CROSSTABS

1 Investment Portion of your income in stock market * AGE Crosstabulation

AGE

18-25 26-35 36-50 ABOVE 50 Total

Investment Portion of your 46 11 4 1 62

income in stock market LESS THAN 5% 16 0 0 0 16

5% TO 10% 11 4 0 0 15

11% TO 15% 7 1 0 0 8

16% TO 20% 0 1 0 0 1

ABOVE 20% 0 2 0 0 2
Total 80 19 4 1 104

63 | P a g e
  The above cross tabs analysis shows that there is every investor usually invest 5%– 10%
of their income in to the derivative markets from that the age group 18-25 is has more
investors in compare to others and there are very less investors in the age group of 36-
50 or above.

64 | P a g e
 Risk taking capacity * GENDER Crosstabulation
Count

GENDER

MALE FEMALE OTHERS Total

Risk taking capacity 36 24 2 62

LOW 3 9 0 12

MEDIUM 17 6 0 23

HIGH 5 2 0 7
Total 61 41 2 104

65 | P a g e
  From above analysis we clearly understand that there are more males in compare to the
females in the investment activities also the females are low or moderate risk takers or
the males are high risk takers in compare to females.

66 | P a g e
 FINDING

67 | P a g e
  There are not many female are contributing Derivative market so the financier bourses
ought to likewise zero in on Females who are working Independently and Can Invest on
the lookout so they can likewise go through similarly with guys.

 The financial backers are stressed over the an excess of instability of securities
exchange and different misbehaviors on the lookout so they should stop such practices
to win the trust of Investor The financial backers are absence of information so
financier houses ought to give enough

 information if to contribute. They ought to pride the financial backer in the correct
manner not to procure financier or commission from that they should accentuation on
commercial to impact more people as financial backers are more impacted through
their companions and family members.

 . They Should attempt to know the reasons that why they are not putting resources into
person

68 | P a g e
 SUGGESTION

69 | P a g e
  There are not many female are contributing Derivative market so the financier bourses
ought to likewise zero in on Females who are working Independently and Can Invest on
the lookout so they can likewise go through similarly with guys.

 The financial backers are stressed over the an excess of instability of securities
exchange and different misbehaviors on the lookout so they should stop such practices
to win the trust of Investor The financial backers are absence of information so
financier houses ought to give enough

 information if to contribute. They ought to guide the financial backer in the correct
manner not to procure financier or commission from that they should accentuation on
commercial to impact more people as financial backers are more impacted through
their companions and family members.

 They Should attempt to know the reasons that why they are not putting resources into
person

 They should try to know the reason that why they are not investing on
individual basis.

70 | P a g e
 CONCLUSION

71 | P a g e
According to the involvement with working in industry found that generally
individuals are dread in putting resources into Stock market. Generally individuals are
recollecting misrepresentation those are accumulate in Derivative market. so that
individuals are less intrigued to putting resources into Stock market. In the wake of
going through the investigation of financial backer insight for putting resources into
Derivative market. in this review subordinates market generally youngsters and
instructed individuals are contributing. since they know about subsidiary market and
they are having information and high-hazard limit. So that organization needs to make
some Awareness to the Female and Older People.

In the review, it was discovered that Derivatives are utilized as limit hazard in
development of market and acquiring more benefit. In the review, discovered that
Mostly individuals are not having an information in regards to Derivative market and
they are completely relies upon Advisor. Generally individuals are happy with current
execution of Derivative market.

BIBILOGRAPHY
72 | P a g e
https://images.app.goo.gl/zexK5w1X2rsciKqU6

https://www.investopedia.com/terms/s/stockmarket.asp

https://www.investopedia.com/terms/d/derivative.asp

https://www.google.com/search?q=BSE&client=ms-android-samsung-ga-
rev1&prmd=nbixv&sxsrf=AOaemvKVW0PJzoZWSWOanJNUhh1982lDlA:163134160
3593&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjc56eGpfbyAhUIdCsKHXQGA
4oQ_AUoA3oECAMQAw&biw=412&bih=778&dpr=2.63#imgrc=K1qv87k-_vTCYM

https://www.google.com/search?
q=NSE&tbm=isch&ved=2ahUKEwjoqu7NrvbyAhVRcH0KHUZuASsQ2-

https://www.google.com/search?
q=zerodha+&tbm=isch&ved=2ahUKEwjg3cPjm4DzAhX-5XMBHel0AeoQ2-
cCegQIABAC&oq=zerodha+&gs_lcp=ChJtb2JpbGUtZ3dzLXdpei1pbWcQAzIHCCM
Q7wMQJzIFCAAQgAQyBQgAEIAEMgUIABCABDIFCAAQgAQ6BQgAEM0CUN8
OWIsdYN4gaABwAHgAgAHfDYgB0iCSAQkwLjYuNi44LTGYAQCgAQHAAQE&s
client=mobile-gws-wiz-
img&ei=mIBBYeCxBv7Lz7sP6emF0A4&bih=778&biw=412&client=ms-android-
samsung-ga-rev1&prmd=nvix#imgrc=UklJXJnJ0k5RkM

https://zerodha.com/about/

https://www.chittorgarh.com/stockbroker/zerodha/18/

http://www.economywatch.com/world-industries/financial-services.html

https://www.tradebulls.in/about-us

https://www.tradchulls.in/products-and-services

https://www.investopedia.com/terms/d/derivative.asp

73 | P a g e
https://www.investopedia.com/exam-guide/cfa-level-1/derivatives/options-calls-puts.asp
http://www.lexvidhi.com/article-details/regulatory-framework-of-derivatives-markets-in

https://rmoneyindia.com/research-blog-beginners/learn-participants-derivatives-market

hedgers-arbitragers-speculators/ https://blog.ipleaders.in/types-of-derivatives-and-
derivative-market/

https://www.bis.org/ifc/publ/ifcb35a.pdf

https://www.investopedia.com/ask/answers/070815/what-are-main-risks-associated-
trading

derivatives.asp https://www.scribd.com/doc/122426275/Perception-of-Investors-
Towards-Derivative

Market-With-Special-Reference-to-Indore-District-837935667
https://www.slideshare.net/100002294081225/research-project-report-on-investors

https://www.acmeintellects.org/images/AIRMSST/Jul2017/7-7-17.pdf

http://www.iosrjournals.org/iosr-jbm/papers/AETM'15_MBA/2/15-MBA-143.pdf
https://www.academia
http://ipublisher.in/File_upload/89839 70178214.pdf

74 | P a g e
QUESTIONNAIRE

1. Name 

2. Gender 

Male
Female
Others
75 | P a g e
3. Age 
18 to 25
26 to 35
36 to 50
Above 50

4. Educational qualification 

Under Graduate
Graduate
Post graduate
Professional Degree holder
Other

5. Occupation 

Business
Profession
Student
Homemaker
Others

6. Yearly income 
Upto 200000
200000 to 500000
500000 to 1000000
Above 1000000

76 | P a g e
7. Your Investment Objective? 

High return
Future welfare
Retirement plan.
Tax benefit
Other
8. Investment Portion of your income in stock market? 

Less than 5%
5% to 10%
11% to 15%
16% to 20%
Above 20%

9. Risk taking capacity 

Low
Medium
High

10. From where you get your investment advices? 

Friends
Family
Financial advisor
Social media
Other

11. Do you have any idea about Derivative markets? *

Yes
No
77 | P a g e
12. If yes, how do you come to know about Derivative Market? 
Friends
Family
Social media
Financial advisor
Others

13. Which of the following Derivative instrument do you deal in? 

Stock future
Stock index future
Stock options
Stock index options

14. You participate in Derivative market as? 

Hedger
Speculator
Arbitrator
Other

15. Give your views on some terminology in derivative market *

Strongly Agree (SA), Agree (A), Neutral (N), Disagree (D), Strongly Disagree (SD)

SA A N D SD
Is derivative
market future
oriented?

Is Derivative
Market
useful to earn

78 | P a g e
 profit rapidly

Derivative Market
is More risky as
compared to the
cash market

Purchasing High
amount of lot to
paying low margin

Ownership is not
transferred in
derivative market

Transaction cost is low

in derivative market as
compared to cash market..

16. Are you satisfied with the Current performance of the

derivative market? 
Yes
No

17. suggestion or feedback on Derivative market

79 | P a g e