A PROJECT REPORT ON INVESTORS PERCEPTION TOWARDS INVESTMENT IN DERIVATIVE MARKET AT GEOJIT BNP PARIBAS BY B.

PAVAN TEJA (226011672013)

A project report submitted in partial fulfillment for the award of the degree

MASTER OF BUSINESS ADMINISTRATION (FINANCE) By OSMANIA UNIVERSITY, HYDEARABAD-500007. 2011-2013

A PROJECT REPORT ON INVESTORS PERCEPTION TOWARDS INVESTMENT IN DERIVATIVE MARKET AT GEOJIT BNP PARIBAS

BY

B. PAVAN TEJA (226011672013)

TKR INSTITUTE OF MANAGEMENT AND SCIENCE Affiliated to OSMANIA UNIVERSITY

(2011-2013)

CERTIFICATION This is to certify that the project on A STUDY ON INVESTORS PERCEPTION TOWARDS INVESTMENT IN DERIVATIVE MARKET submitted by Mr. B. PAVAN TEJA bearing roll no. 226011672013 is examined by and adjudged as a partial requirement for the degree of MASTER OF BUSINESS ADMINISTRATION in TKR INSTITUTE OF MANAGEMENT AND SCIENCE affiliated to OSMANIA UNIVERSITY, Hyderabad is a bonafide of work done.

Name of the Guide T. S. Archana Associate Professor TKR Institute of Management & Science

Signature of the Guide

DECLARATION

I hereby declare that this project report entitled a study on INVESTORS PERCEPTION TOWARDS INVESTMENT IN DERIVATIVE MARKET submitted by me to the Department of Business Management, Osmania University, Hyderabad, is a bonafide work undertaken by me and it is not been submitted to any other University or Institution for the award of any Degree/ Diploma/ Certificate or published any time before.

Name of the Student B. PavanTeja Plot No. 39B Ampro Colony, Saroor Nagar. Hyderabad-35. (B. PAVAN TEJA)

ABSTRACT
A project titled A STUDY ON INVESTORS PERCEPTION TOWARDS INVESTMENT IN DERIVATIVE MARKET describes about how the clients select the medium of (online trading) while involving in trading activities particularly in stock market and what the factor determines the medium and what are the things they expect from stock exchange. It is important that people need to understand the dynamism and the compulsion of financial market. Whether it is share market or any other market. Now-a-days investor goes on with the sentiment of the market without knowing of how investments are marketed. Moreover the same investor usually does not have the knowledge about the trading types and other features. This study gives the knowledge regarding which investment options are mainly selected by different investors, which gives the result that mostly online trading is preferred by the investors in stock market. The main research carried on of how investors invest in stock markets, what are the factors they keep in mind while investing in stock markets and which firm they prefer the most. A sample size around 50 investors from Hyderabad city is taken to complete the project.While derivatives are interesting to use, it can be like a fire in the hands of a child when a novice investor who does not understand the intricacies involved decides to make use of it. It is a very quick way to make some quick bucks in a short time and also a quicker way to lose a lot of money within the same time frame.On the whole, derivatives are a great investment vehicle if regulated and traded properly. Hedgers can control their risk with the use of a small amount of money down. Investors or speculators have the ability to participate in a wide variety of investments through the use of derivatives that wouldnt otherwise be feasible. Those who use derivatives properly often benefit and those who dont will often create problems for themselves and others.

ACKNOWLEDGEMENT

I would like to express my sincere thanks to management from GEOJIT BNP PARIBAS for the permission to undertake the project in their organization. At the outset, I would like to express my deepest gratitude to Mr. P. VENKAT REDDY, my guide for her excellent guidance and encouragement during the course of the project work in the organization. I would like to express my gratitude to Dr. J. VARAPRASAD REDDY, Principal, and to Mr. J. P. SENTHIL KUMAR, HOD, Department of MBA, TKR INSTITUTE OF MANAGEMENT AND SCIENCE, for his guidance to carry out the project successfully. My sincere thanks to my Internal guide Mrs. T. S. ARCHANA Associate Professor, Department of MBA, TKR INSTITUTE OF MANAGEMENT AND SCIENCE, for her dedicated guidance, suggestions and continuous encouragement to carry out the project successfully.

(B. PAVAN TEJA)

CONTENTS
List of figures List of tables CHAPTERS 1 INTRODUCTION 2 Objectives Scope Need Methodology Limitations 8-37 i ii PAGES 1-7

LITERATURE REVIEW Definition History Investments Indian Market

COMPANY PROFILE Introduction Evolution Management Milestones

38-44

4 5 6 7

DATA ANALYSIS & INTERPRETATION SUMMARY & CONCLUSIONS BIBLIOGRAPHY ANNEXURE

45-57 58-29 60 61-63

List of Figures:
FIGURE Figure-1: Types of Derivatives Market Figure-2: Types of Derivatives Figure-3: 1.3a Comparison of New System with Existing System Figure-4: 1.3b Arbitrageurs Figure-5: 1.3c Hedgers Figure-6: 1.3d Small Investors PAGES 11 12 28 29 30 31

List of Tables:
TABLE PAGES 15 20 37

Table-1:DISTINCTION BETWEEN FUTURES AND FORWARDS CONTRACTS Table-2: Chronology of instruments Table-3: Forex Market Activity

ii