SCRA act 1956 defines ‘derivatives ‘ as, A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. A contract which derives its value from the prices, or index of prices, of underlying securities.
•Physical commodities: Coffee, Crude oil, Wheat etc.
•Financial assets: Currencies, Stocks, Bonds, etc.
•Financial Prices: Interest rates, stock indices
voucher valued Rs.500/- such gift voucher is considered to be a derivative whose value is
determined by the value of the underlying asset i.e books.
The various derivative products are as follows
Futures, forward contracts, forward rate agreements, SWAPs
Curreny Options, index options, commodity options etc.
Swaptions, Options on futures.
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