Summer Training Report

On
Financial Derivatives
Submitted To

PUNJAB TECHNICAL UNIVERSITY JALANDHAR

In the partial fulfillment of Requirements for the award of Degree of
Masters in Business Administration
Submitted By
Jyotsna (Roll No:1522509)
Under the Guidance Of
Mrs.Ruchi Jain
Department of Management

INNOCENT HEARTS GROUP OF INSTITUTIONS, JALANDHAR 201617

ABSTRACT
The emergence of the market for derivatives products, most notably 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. Derivatives are
risk management instruments, which derive their value from an underlying asset. The
following are three broad categories of participants in the derivatives market Hedgers,
Speculators and Arbitragers. Prices in an organized derivatives market reflect the perception
of market participants about the future and lead the price of underlying to the perceived
future level. In recent times the Derivative markets have gained importance in terms of their
vital role in the economy. The increasing investments in stocks (domestic as well as overseas)
have attracted my interest in this area. Numerous studies on the effects of futures and options
listing on the underlying cash market volatility have been done in the developed markets. The
derivative market is newly started in India and it is not known by every investor, so SEBI has
to take steps to create awareness among the investors about the derivative segment. In cash
market the profit/loss of the investor depends on the market price of the underlying asset.
The investor may incur huge profit or he may incur huge loss. But in derivatives segment the
investor enjoys huge profits with limited downside. Derivatives are mostly used for hedging
purpose. In order to increase the derivatives market in India, SEBI should revise some of
their regulations like contract size, participation of FII in the derivatives market. In a nutshell
the study throws a light on the derivatives market

ACKNOWLEDGEMENT

Surpassing milestones towards a mission sometimes give us such degree of jubilance that
we tend to forget the precious help extended by people to whom the success of mission is
solely dedicated.
Concentration, dedication, hard work & application are essential but not the only
factor to achieve the desired goal. It must be supplemented by guidance, assistance &
cooperation of people to make it a success. Every complete successful assignment is the
result of many hands joined together and we must thank all of them.
My summer training at the Jalandhar was an ardent, unforgettable and fruitful
experience. I was overwhelmed with the friendly and cooperative attitude, the enlightened
advice and information extended to me by everyone.
I express my deep sentiments of gratitude to revered guide Mr.VARUN NAYYAR
(Training Head in ITRONIX SOLUTION, JALANDHAR) for their keen and personal
interest, guidance and moral support throughout the entire period of this project work without
which it would not have been possible to accomplish this work.
I hereby also thank Mr. SHAILESH TRIPATHI (Director),Innocent Hearts Group Of
Insitution, Loharran for giving us this opportunity to work on the summer internship project
that will enhance our knowledge and competences to meet such task in future.
I feel lucky to have worked under the able and competent guidance of my project
guide Ms. RUCHI JAIN (Lect. in Dept. of Mgt.) who gave me the best possible guidance to
complete my project in the best possible way. I am also thankful to all the respondents who
spent their precious time despite their busy schedule.
At last but not the least, my warmest thanks to my parents and all my friends as their
motivation proved to be of great help in the completion of this project.

JYOTSNA

DECLARATION

I hereby declare that the project done by me is true to my knowledge .The Project duration
was of one and half months (01/06/16 to 15/07/16).The information collected by me is
authentic and is done through data analysis and interpretation and I have a thorough
knowledge of the project.
I further declare that this project report has not been submitted to any other university or
Institute for the award of any Degree or Diploma

Place: JALANDHAR
Date:

JYOTSNA