DERIVATIVE ACCOUNTING PRACTICES IN INDIA

“DERIVATIVE ACCOUNTING PRACTICES IN INDIA”

Mr. Rohan Tulshiram Nandire

Student of Master of Management Studies,

Alamuri Ratanamala Institute of Engineering And Technology,

Mumbai University,

rohannandire@gmail.com

Prof. Shital Shah, Assistant Professor,

Master of Management Studies

Alamuri Ratanamala Institute of Engineering And Technology,

Mumbai University,

Dr.Ashwini Kshirsagar Professor / HOD,

Master of Management Studies

Alamuri Ratanamala Institute of Engineering And Technology,

Mumbai University

ABSTRACT:-

The emergence of the market for derivative products, most basically forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking–in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. The emergence of the market for derivative products, most basically forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking–in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices.

KEYWORDS –

Derivatievs, Option, Put, Call, Shares, Value, Price.