A PROJECT REPORT ON

Study, Analysis and Evaluation Currency Derivative Practices Imparted by Anand Rathi
SUBMITTED TO MAHATMA PHULE INSTITUTE OF MANAGEMENT (MPIM)

BY MANWENDRA SINGH MBA-II IN PARTIAL FULFILLMENT OF MASTERS OF BUSINESS ADMINISTRATION (MBA) 2011-13 UNIVERSITY OF PUNE PUNE

DECLARATION

I, Mr. Manwendra Singh hereby declare that this project report is the record of authentic and genuine work carried out by me during the period from 08 May 2012 to 9 July 2012. The result and conclusion may vary according to different methodologies. The above work has not been submitted to any other University or Institute for the award of any degree / diploma etc.

PLACE: DATE: SINGH)

(MANWENDRA

MBA-II

PREFACE
This project has been prepared in partial fulfillment of the requirement for the Subject: STUDY, ANALYSIS AND EVALUATION OF CURRENCY DERIVATIVE PRACTICES IMPARTED BY ANAND RATHI for MBA Program (2011-2013). For preparing the report I have visited various corporate offices in Pune who are broking firms. The report was completed in the suggested duration of 45 days in the month of May to July 2012 to avail the necessary information. The blend of learning and knowledge has been acquired during my practical studies at the company is presented in this report. The rationale behind visiting the corporate companies and preparing the project is basically to study the Whole stock market Broking firms and currency derivative market. The project report starts with the basic introduction. The information presented in this Project Report is obtained from sources like Company Personnel, Company Websites, Other Websites, Company Reports, NCFM Modules and many other Journals.

ACKNOWLEDMENT

It would had not been possible to write this Summer Training Project without the help and support of the kind people around me, to only some of whom it is possible to give particular mention here. It was indeed an opportunity for me to visit ANAND RATHI, Pune and prepare a project report on the same during the program MBA. During my visit to the company I learnt many interesting things about the company, along with the aspects of Financial Derivative as a whole. Above all I would like to thank my college Director Prof.A.S.Sarkar for her excellent provided enthusiasm and encouragement in each and every student of Mahatma Phule Institute of Management to take the initiative to do SIP for the year 2011-2013. Also special thanks to my parents, sister and my close relatives for giving me their equivocal support throughout, as always, for which my mere expressions of thanks likewise does not suffice. My grateful thanks also go to my Project Guide Prof. S.B.Khalate, from the faculty of Mahatma Phule Institute of Management. Also thanks and regards to Prof.S.Jadhav, Head of Placement Department for giving me an opportunity to practice in the organization. Last but not the least my sincere thanks to the Branch Manager of ANAND RATHI (Pune), K.S.Kulkarni who helped me out in every aspect to make me a complete professional man to work in any organization.

INDEX
CHAPTER NO 1 2 3 SUBJECTS COVERED EXECUTIVE SUMMARY COMPANY PROFILE THEORETICAL BACKGROUND
Introduction of Financial Derivatives Introduction to Currency Derivatives Types of Financial Derivatives Derivatives Introduction in India History of currency derivatives Utility of currency derivatives Introduction to Currency Derivatives Introduction to Currency Future

PAGE NO 1 2-09 10-34

Brief overview of the foreign overview market 4 RESEARCH METHODOLOGY

Objective of the Study Scope of Research Type of Research Source of Data collection Limitations

35-37

DATA ANALYSIS & INTERPRETATION

Interest Rate Parity Principle

38-57

Product Definitions of currency future Currency futures payoffs Pricing Futures and Cost of Carry model Hedging with currency futures Current Currency Derivatives Market Overview Contract Specifications Competitors of Anand Rathi

6 7 8

Currency Movement Impact FINDINGS AND SUGGESTIONS CONCLUSION BIBLIOGRAPHY

58-59 60 61