Summer Internship Project Report

On
Study on Derivatives as an Investment opportunity
Completed At
Cargill India Pvt. Ltd.

By
Kunal Khetarpal
FIB1823 PGDM-IB (2018-20)
Under Joint Supervision of
Miss Shabnam and Mrs. Megha Jain

Presented in Partial Fulfillment of the Requirements of

Post Graduate Diploma in Management

3, Institutional Area, Rohini, Sector 5,

New Delhi – 110085 India

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 Cargill India Pvt. Ltd.
14th Floor, Bld. 9A, DLF Cyber-city,
Phase 3, Gurgaon, Haryana - 122002

CERTIFICATE

Certified that the summer internship project report on “Study on Derivatives

as an Investment opportunity” is the bonafide work of “Kunal Khetarpal,
Roll No: FIB1823”, pursuing PGDM-IB, Batch (2018-20) of Jagan Institute
of Management Studies, 3, Institutional Area, Rohini, Sector 5, New Delhi -
110085. The work has been done under my supervision during 07/05/2019 –
07/07/2019.

Date:
Megha Jain
SUPERVISOR
Deputy Manager
Origination & Treasury

2
 CERTIFICATE

This is to certify that the summer internship project report on “Study on

Derivatives as an Investment opportunity” is a bonafide work of “Kunal
Khetarpal, Roll No: FIB1823”, pursuing PGDM-IB, Batch (2018-20) of
Jagan Institute of Management Studies, 3, Institutional Area, Sec-5, Rohini,
New Delhi – 110085. The report was prepared under my supervision during
07/05/2019 – 07/07/2019.

Date:
Miss Shabnam
Faculty Guide
JIMS, Rohini, Sector 5, New Delhi - 85

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 STUDENT’S DECLARATION

I declare that the Report on “Study on Derivatives as an Investment

opportunity” is an original work done by me in accordance with the
guidelines prescribed by the Dean’s office for preparation of Summer
Internship Project Report and the work has not been submitted anywhere else
for review.

I understand that if the content of the work is found to be plagiarized at any

time of its evaluation, my report can be rejected and disciplinary action may
be initiated against me.

Kunal Khetarpal
FIB1823
PGDM-IB (2018-20)

Acknowledgement
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The satisfaction and euphoria that accompany the successful completion of the
project would be incomplete without the mention of the people who make it
possible.

I would like to take the opportunity to thank and express my deep sense of
gratitude to my corporate mentor Mrs. Megha Jain and my faculty mentor Ms.
Shabnam. I am greatly indebted to both of them for providing their valuable
guidance at all stages of the study, their advice, constructive suggestions, positive
and supportive attitude and continuous encouragement, without which it would
have not been possible to complete the project.

I would also like to thank Mr. Sanjeev Dhawan who in spite of busy schedule has
co-operated with me continuously and indeed, his valuable contribution and
guidance have been certainly indispensable for my project work.

I owe my wholehearted thanks and appreciation to the entire staff of the company
for their cooperation and assistance during the course of my project.

I hope that I can build upon the experience and knowledge that I have gained and
make a valuable contribution towards the industry in coming future.

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 List of Figures

S.N. Particulars Page No.

1. Share across asset market 18

2. Trading strategies of respondents across asset market 18
3. Driving factors of asset markets as perceived by respondents 19
4. Significance of factors leading to restrain in currency 20
derivatives trading
5. Importance given to boosting factors of currency derivative trading 21

List of Tables
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S.N. Particulars Page No.

1. Case Processing Summary 23

2. Asset Market * Driving Factor cross- tabulation 23
3. Chi – square test result 24

Table of Contents

Page No.
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 Certificate (from the organization) 2
Certificate (from the faculty mentor) 3
Author’s Declaration 4
Acknowledgement 5
List of Figures 6
List of Tables 7

Executive Summary 9

Chapter1: Overview
1.1 Introduction 10
1.2 Overview of the company 11
Chapter 2: Research Methodology
2.1 Objectives and scope 12
2.2 Research design 12
2.3 Sources of data collection 12
2.4 Sampling Design 14
2.4 Limitations of the study 14
Chapter 3: Conceptual Background 14
Chapter 4: Data Analysis and Findings 17
Chapter 5: Discussion and Conclusion 25
Chapter 6: Recommendations 26
Bibliography 27
Annexure 27

Executive Summary

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The currency derivatives market is the largest asset market in the world, which is larger than the
equity markets and the commodity markets. However, the Indian scenario is different than this.
Currency derivatives market seems to be smaller than the equity markets and the commodity
markets in India.
In this research project we aim to find the reasons as to why Currency derivative market has not
been able to pick up its momentum in India. We have found people’s perspective, thoughts and
the reasons that why they are investing in different asset markets. We tried to explore what are
the constraints for them while investing in these markets, especially the currency derivatives
market. Through this research we also try to recommend some steps that can be taken to boost
the growth of currency derivative markets in India. In this regard we asked the respondents to
rate the steps so that we can know how effective each one would be.

Chapter 1: Overview

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1.1 Introduction
Derivative trading in India commenced in June 2001 when SEBI approved trading in Index
futures contracts based on S&P CNX Nifty and BSE-30 (Sensex) index and the trading in
options on individual securities started in July 2001. Futures contracts on individual stocks were
started in November 2001.
RBI on April 20, 2007 issued guidelines for the usage of foreign currency forwards, swaps and
options in the OTC market.
In August 2008, RBI and SEBI approved selected exchanges to offer currency trading and issued
guidelines for the same. Over the past year average daily volumes in currency futures have been
increasing rapidly as compared to the equity market.
Recently the United Stock Exchange of India allowed trading in currency derivatives. The
exchange went live at 9 a.m. with trading in four currency pairs allowed by SEBI, involving the
U.S. dollar, the INR, Japan's yen, the British pound and the euro.
The exchange estimated that the 9.9 million contracts that were traded on the first day, worth
roughly $10 billion, witnessed 52 percent share of the market for currency derivatives in India.
The exchange is backed by 21 Indian public sector banks, including Allahabad Bank, Andhra
Bank, Bank of Baroda, Bank of India, Bank of Maharashtra, Canara Bank, Central Bank of
India, Corporation Bank, Dena Bank, IDBI Bank, Indian Bank, Indian Overseas Bank, Oriental
Bank of Commerce (OBC) , Punjab and Sind Bank, Punjab National Bank, State Bank of
India(SBI), Syndicate Bank, UCO Bank, Union Bank of India, United Bank of India and Vijaya
Bank.
In addition to public sector banks, five private sector banks also have equity participation in
USE; Axis Bank, Federal Bank, HDFC Bank, ICICI Bank and J&K Bank.
Other investors are Jaypee Capital, MMTC and Indian Potash as well as the Bombay Stock
Exchange.

1.2 Overview of the company

Cargill provides food, agriculture, financial and industrial products and services to
the world. Together with farmers, customers, governments and communities, it helps
people thrive by applying our insights and over 150 years of experience.
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It consist of 155,000 employees in 70 countries/regions who are committed to
feeding the world in a responsible way, reducing environmental impact and
improving the communities where we live and work.

In addition to serving customers, Cargill handles its own trade finance and risk mitigation needs.
It also optimize the company’s physical trade flows to create trade finance-generated liquidity in
emerging markets for customers. In carrying out these activities, Cargill is also involved in the
proprietary trading of financial products, foreign exchange, credit and money markets.

Chapter 2: Research Methodology

2.1 Objectives and scope

This Research Project has been taken up to find out the awareness of Currency Derivatives
trading in India. The objectives of the study are as follows:

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•To know the percentage of existing traders of currency derivatives or are interested in it
•To find the factors influencing the retail investors for investing in each asset market.
•To understand the reasons why trading in currency derivatives is less popular amongst Indian
retail investors
•To know the factors that would be helpful to boost currency derivative trading in India.

2.2 Research design

Exploratory research has been adopted here to find out the idea behind the currency derivative
trading pattern & its sensitive influencers.

2.3 Sources of data collection

The major sources of data collection is Primary Data.

Primary Data has been collected with a structured questionnaire by conducting an online survey
amongst the people.
Some of the secondary information was collected by the company’s website and the data of
company’s customers.
This has helped in obtaining the nature of various products and understanding the features that
have been included in each of these products.

Primary Data
Convenience sampling was used which is based on the availability and willingness of the
respondents.

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The questionnaires were made in the google forms to be filled online from finance industry
experts and the people who are into trading or the ones willing to get into trading or otherwise
having good knowledge about financial markets.

Initially we began with a focus group of 5 financial service professionals extended to 50

participants. We have got completed surveys from different respondents in all aspects.

Secondary Data

 Couple of research papers have also been referred (Anuradha Guru – Forex Derivative
trends, Tulsi Lingareddy – Present state of Forex in India) to collect secondary data
insights from the market data

 News video clipping broadcasted on CNBC TV18, on February 14, 2011 on the topic of
Currency Options was also been referred to observe the future possibilities of currency
market in India

Variables chosen for study

 A nominal scale chosen to observe the major factors influencing the investors to invest in
the different asset markets

 A likert scale labelled from Very Insignificant to Very Significant is chosen to understand
the importance alloted to various factors causing restraints for investors from trading in
currency derivatives, so that we will be able to understand the root causes and the market
awareness levels of respondents

 •An interval scale is used as a tool to determine the level of significance alloted to
various reforms that would increase the participation of different investors in currency
derivatives

2.4 Sampling design

Test unit: 25 years and above

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Area: Delhi
Sample Technique: Questionnaire

2.5 Limitations of the study are as follows:

 The behaviour of the respondents while approaching them to fill the questionnaire was
unpredictable.
 The research was conducted with limited scope and sample.
 Smaller sample does not always give better results. Sample may not be true
representative of the entire population.
 There may be some discrepancy due to bias-ness of respondent.

Chapter 3: Conceptual Background

Financial Markets
Financial Market is the market where financial securities like stocks, bonds, commodities like
valuable metals and Foreign Exchange are exchanged at efficient market prices.

Equity Markets
These markets are where shares are issued and traded, either through exchanges or over-the-
counter (OTC) markets.

This can further be split into two main sectors:

1. Primary market
2. Secondary market.

The primary market is where new issues are first offered. Any subsequent trading takes place in
the secondary market.

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Commodity markets
In these markets raw or primary products are exchanged. These raw commodities are traded on
regulated commodities exchanges, in which they are bought and sold in standardized contracts.

Foreign Exchange markets

“Foreign Exchange” refers to money denominated in the currency of another nation or a group
of nations. Any person who exchanges money denominated in his own nation’s currency for
money denominated in another nation’s currency acquires foreign exchange.

The exchange rate is a price - the number of units of one nation’s currency that must be
surrendered in order to acquire one unit of another nation’s currency.

The foreign exchange market or forex market as it is often called is the market in which
currencies are traded. Currency Trading is the world’s largest market consisting of transactions of
almost trillions in daily volume and as investors learn more and become more interested, the
market continues to grow rapidly. In addition to being the largest market in the world, it is also
the most liquid, differentiating it from the other market.

Financial Derivatives
Derivative is a product whose value is derived from the value of one or more basic variables,
called underlying. The underlying asset can be equity, index, foreign exchange (forex),
commodity or any other asset.

Derivative products initially emerged as hedging devices against fluctuations in commodity

prices and commodity-linked derivatives remained the sole form of such products for almost
three hundred years. The financial derivatives came into spotlight in post-1970 period due to
growing instability in the financial markets. However, since their emergence, these products have
become very popular and by 1990s, they accounted for about two-thirds of total transactions in
derivative products.

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Types of Derivatives
 Over-the-counter (OTC) derivatives: Contracts that are traded (and privately
negotiated) between two parties directly, without going through an exchange or other
intermediaries. Products such as swaps, forward rate agreements, and exotic options are
the ones traded in this way.

 Exchange-traded derivative contracts (ETD): Those derivative instruments that are

traded by specialized derivative exchanges or other exchanges. A derivatives exchange is
a market where standardized contracts defined by the exchange are traded by individuals.

Currency Derivatives
Currency futures were first created in 1972 at the Chicago Mercantile Exchange (CME).
Currently, CME offers 41 individual FX futures and 31 options contracts on 19 currencies, all of
this trades electronically on the exchange’s CME Globex platform. It is a largest FX trading
regulated marketplace. The various uses of currency derivatives are:

 Hedging: It is the process of locking in the foreign exchange rate today so that the value
of inflow in INR terms is safeguarded. For instance: Entity A is expecting a remittance
for US$ 1000 on 31st March 10. It can remove the currency exchange fluctuation risk by
selling one USD/INR August contract today.

 Speculation: If a trader estimates on the direction of the market, that is, he expects the
value of rupee to appreciate or depreciate, he can sell or buy a USD/INR contract and
earn a profit if the market moves in the expected direction.

 Arbitrage: Arbitrage is the way of taking benefit of difference in price of the same or
similar product between two or more markets. If the same or similar product is traded in
say two different markets, any entity which has reach of both the markets will be able to
identify price differentials, if any and earn profit of the same.

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 Chapter 4: Data Analysis and Findings

Following are the results from the survey results:

Percentage of respondents who have thought of currency derivatives trading as an
investment option:
28% of the respondents have actually thought of currency derivatives as an investment
opportunity or profession. 63% haven’t yet thought of it, but might invest after conducting
sufficient research. 9% haven’t ever heard about currency derivatives as an asset market
Thus if they can acquire the right and sufficient knowledge the percentage of investors in the
currency derivatives segment will rise exponentially.

Percentage of respondents into different asset markets:

75% of the respondents trade in equity. 16% in commodity market and only 9% in the currency
derivatives.
Thus we witnessed that trading in currency derivatives is not very popular in India yet.

Percentage of respondents with expertise in different asset market:

20% of the respondents feel that they don’t have any expertise in equity market. 38% feel they
are just beginners in equity markets and around the same proportion feel they have intermediate
knowledge about the same. Only about 3.5% feel they have expertise in equity trading.
54% of the respondents feel they don’t have any expertise in commodity market.33% feel they
are just beginners in commodity markets and only 13% feel they have intermediate knowledge
about the same. None of the respondents feel they are experts in commodity market.
62% of the respondents feel they don’t have expertise in currency derivatives market. 34% feel
they are just the beginners in currency derivatives markets and only 2.5% feel they have
intermediate knowledge about the same. A mere 1.5% feel they have expertise in currency
derivatives trading.

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Thus we witnessed that the lack of knowledge is the most dominant in case of currency
derivatives
Division of `. 1000 among equity, commodity and currency derivative market:
When asked to divide a sum of Rs1000 and
allocate the same to the given 3 asset markets,
the respondents allocated 62.5% to equity (refer
to Figure.1), 21.65% to commodity market and
a remaining 15.8% to currency derivatives
market.
Figure 1: Share of `.1000 across asset markets

Thus we witnessed that a higher proportion of the allocated amount is invested in equity,
followed by commodity and the least in invested in currency derivatives.

Percentage of respondents with each trading strategy in different asset markets:

29.3% of the
respondents trade in the
Equity market for the
purpose of hedging.
(Refer to Figure.2)
64.5% are speculators
and invest from
speculation perspective,
Figure 2: Trading strategies of respondents across asset markets only 6% try to
earn profit by means of arbitrage.

31.8% of the respondents trade in the commodity market for the purpose of hedging. 50.6% are
speculators and invest from speculation perspective and 17.6% try to earn profit by means of
arbitrage.

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39.5% feel they might trade in currency derivatives for the purpose of hedging, 42% will be
speculators and just about 18.5% would try to earn profit through the process of arbitrage.
Thus we witnessed that a higher number of our respondents would trade in currency derivatives
for the purpose of hedging as compared to the equity market and the commodity market.

Percentage of respondents with their driving attributes for trading in different asset
markets: (refer to figure.3)

36.6% feel that Returns

is the only driving
attribute for them for
trading in the equity

Figure 3: Driving factors of asset markets as perceived by the respondents

market, while according to 22.5% volatility in the equity market is what drives them for
investment. 27.7% think portfolio diversification is the driving factor while 9.4% concludes that
hedging gives the edge to the equity market. 3.75% of respondents were of the opinion that they
would trade in the equity market to get arbitrage opportunities.
24.4% respondents feel that Returns is the driving attribute for trading in the commodity market,
while according to 24.4% volatility in the commodity market is what drives them for investment.
24.4% think portfolio diversification is the driving factor while 18.3% were of the opinion that
hedging gives the edge to the commodity market. 8.5% say they would trade in the commodity
market to get benefit from arbitrage opportunities.

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23.2% respondents feel that ‘Returns’ is the driving attribute for trading in currency derivatives,
while according to 23.5% volatility in currency derivatives is what drives them for investment.

17.5% think portfolio diversification is the driving factor while 20.65% were of the opinion that
hedging gives the edge to currency derivatives. 14.8% say they would trade in currency
derivatives to get benefited from arbitrage opportunities.

Thus we witnessed that the driving attribute for the currency market sees a high jump in hedging
when compared to the equity market and the commodity market.
Percentage of respondents with reasons for the lack of interest in currency derivatives:
Looking upon the various reasons (refer to Figure.4) that could influence Indian investors for
lesser investment towards currency derivatives trading, about 70% of the respondents concludes
that the lack of self-knowledge is a significant factor for them, whereas just 14% find it
completely irrelevant.
Figure 4: The significance of factors leading to restrain in currency derivatives trading

Considering the less popularity for currency derivatives among the peers as an attribute, around
65% of the sample population find it to be a significant one, whereas just 14% have voted against
it being a significant reason.

17% of the respondents were of the opinion that the lack of government initiatives is a very
significant factor, whereas just 6% concludes that it is highly insignificant that government
policy can influence the fate of currency derivatives market in India.

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Thus we witnessed that lack of self -knowledge is the main factor for the lack of interest
among the Indian investors in the currency derivatives market.

Percentage of respondents with the steps they think are most significant to promote
currency derivatives market in India: (refer to Figure.5)

Figure 5: The importance given to boosting factors of currency derivatives trading

34% and 37% of the respondents feel that improving investor knowledge through media
broadcasts can respectively be a significant and very significant factor for boosting
currency derivatives trading in India.

About 43% of the respondents were of the opinion that Opportunity to trade in non-US
currency futures can boost the currency derivatives market in India, whereas just 20%
feel that it would be an insignificant factor. 36% choose the mid- way.

Relaxation of regulatory framework by SEBI gets well with 41% of the respondents,
whereas 34% remain neutral for this factor. Only a minority would like to disagree with
this .

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Thus we witnessed that steps to improve investor knowledge through media broadcast can go a
long way to promote currency derivatives trading in India.

Relationship between annual income and preference of asset market:

It is also witnessed that with the increase in the annual salary of the respondents they start
deviating their investments from equity towards commodity and currency derivatives market.

Crosstabulation: Feeling about the Market * Driving Factor where survey is done.
 Note that 51% respondents were of the opinion thet the returns act as driving factor for
Equity
 However, Only 17% were in favour of arbitrage.

Are these differences between region and response likely to be due to chance?

Chi-Square is being performed as an independence test to validate the data collected

Calculation of Chi Square:

Where: O = Observed frequencies, and E = Expected frequencies

 The SPSS output in Table.1 shows the number of responses received for the respective
question in the survey

Table 1: Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Asset Market * Driving 524 100.0% 0 .0% 524 100.0%
Factor

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Table 2: Asset Market * Driving Factor Cross-tabulation

Table.2 below shows the difference between expected and observed values for each driving factor across
various asset markets

Driving Factor
Portfolio
Market Diversificati Arbitrag
Return Volatality on Hedging e Total
Asset Currencie Count 36 37 26 33 23 155
Market s % within Asset 23.2% 23.9% 16.8% 21.3% 14.8% 100.0%
Market
Commodit Count 39 39 39 30 15 162
y % within Asset 24.1% 24.1% 24.1% 18.5% 9.3% 100.0%
Market
Equity Count 78 41 59 21 8 207
% within Asset 37.7% 19.8% 28.5% 10.1% 3.9% 100.0%
Market
Total Count 153 117 124 84 46 524
% within Asset 29.2% 22.3% 23.7% 16.0% 8.8% 100.0%
Market

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Table 3: Chi-Square test results

Asymp. Sig.
Value df (2-sided)
a
Pearson Chi-Square 34.590 8 .000
Likelihood Ratio 35.431 8 .000
Linear-by-Linear 18.521 1 .000
Association
N of Valid Cases 524
a. 0 cells (.0%) have expected count less than 5. The
minimum expected count is 13.61.

Interpretation of chi-square
 The magnitude of the chi-square value should be judged against a table of values of the chi-
square distribution:
 One must enter the given table using the appropriate degrees of freedom: calculated
according to the size of the table:
 X2 degrees of freedom = df
o = (rows - 1) (columns - 1)
o = (3 - 1) (5 - 1)
o = 2 x 4 = 8.
 Given the same degrees of freedom, the greater the chi-square value, the more "significant" it
is.
 Since the significance value is 0.000, at the 95% confidence interval, it can be stated that:
 A chi-square as large as 34.5 (from Table.3) for 8 degrees of freedom would be estimated by
chance fewer than 1 time in 1000
 The mentioned driving factors are significantly dependent on the basis of chosen asset
markets to invest

Findings :
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  Only 9% of investors are already into this trading, while 63% are interested in trading
after performing research
 Hedging is considered as a major driving factor for investing in currency markets (21%)
as compared to Equity(10%) & Commodity(18%)
 70% of the respondents were of opinion that improving investor’s self-knowledge will
increase the retail participation in Currency derivatives
 68% feel that relaxation in the norms of SEBI in terms of lot size and percentage margins
will spurt a rise in currency derivatives trading

Chapter 5: Discussion and Conclusion

 After going through the research, the conclusion made by me is that the people are
partially aware about the currency derivative as trading option but are more reluctant
towards equity and commodity market for trading and investment.
 Also, we found that returns is the significant attribute for the investors investing in equity
market and arbitrage if the factor that influence the investors for trading in Currency
markets.
 Respondents keen interest while investing is towards hedging in each market.
 Lack of self-knowledge and govt. initiative are the significant reasons for less popularity
of currency market among potential and existing investors.

To conclude it is seen that, currency market is less popular among the investors as they are not
open to bear the risk of currency fluctuations, also lack of govt. initiatives and self-knowledge
restrain the existing investors and potential investors to trade in currency markets.
Key Learnings:

The main Key Learnings from the Internship were:

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  Basic knowledge about the derivatives and how to use them to reduce currency
fluctuation risk.
 Before the internship, I was unaware about futures, forwards , swaps etc. So, I got to
know about these types of derivatives used.
 Also I get to know about the reconciliation of export with collection received and
issuance of BRC related to exports
 I was told a brief about the practical aspect of derivatives trading.
 I came to know the corporate culture and environment. How to deal with clients,
teamwork, formal e-mail communication.

Chapter 6: Recommendations

• Government should undertake certain steps to increase liquidity in the market by introducing
various cross-currency pairs as well as more products and by opening doors for other players like
foreign institutional investors to trade in this market

• Efforts have to be made to change the perception of currency derivatives as an insuring

instrument to reduce risk rather just as a speculative trading product

• Improving investor knowledge with the help of web portals, learning documents and media
broadcasts

Bibliography

 Derivatives in India by Asani Sarkar:

www.ny.frb.org/research/economists/sarkar/derivatives_in_india.pdf

 Foreign exchange derivative markets in India by Invest India Economic Foundation:

www.iief.com/Research/CHAP10.PDF

 Betting of the money game – article in Business Today

Jan.31,2011:http://businesstoday.intoday.in/bt/story/12653/1/high-leverage-currency-
derivatives-can-benefit-you.html
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  Currency Derivatives Segment – NSE India:
http://www.nse-india.com/content/circulars/cd13462.pdf

Annexure

Questionnaire used for the survey:

Currency Derivatives trading in India
Kindly spare a few minutes to fill this form, be a part of real customer perception survey and
support us to gain subtle insights about Currency Derivatives trading's popularity quotient among
Indian retail investors.
1. * Did you ever think of currency derivatives trading as an investment option or profession?

Yes
No, but planning to invest after performing research
Never, What's Currency Derivatives?
2. In which asset markets do you trade?
(Choose all that apply, skip if you do not trade)

Equity Commodity Currency Derivatives

3. * Rate your expertise in the asset markets:

(Choose one level for each market)
Zero Beginner Intermediate Expert
Commodity
Currency Derivatives
Equity
4. Given Rs.1000, how would you allocate the money among these investment options?
(Cummulative allocation should add up to Rs.1000)
* Shares

* Currencies

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* Commodities

4.
5. What kind of trader best describes you? *
(Choose the most preferred one for each market, skip if you do not trade)
Hedger Speculator Arbitrager
Currency Derivatives
Equity
Commodity
6. Choose top 3 among the following driving attributes for each asset market: *
(Fill for only those markets in which you trade)
Returns Market volatility Portfolio diversification Hedging Arbitrage
Currency Derivatives
Commodity
Equity
7. * Why do think Indian retail investors are less inclined towards Currency Derivatives trading?
Very Very
Insignificant Neutral Significant
Insignificant Significant
Not enough Self-
Knowledge
Less popular among
peers
Lack of govt. initiatives

8. * How effective would be the following factors to boost Currency Derivatives trading in
India?
(1-Star: Least effective, 5-Star: Highly effective)

Improving investor knowledge through media broadcasts

Opportunity to trade in non-US currency futures 

Relaxation of regulatory framework by SEBI 

Name

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* Age

Below 25
25 - 30
30 - 35
Above 35
* Present City of living

If Others, please mention your city here:

* Profession

* Average annual income

Rs.0 - Rs. 2.5 lac

Rs. 2.5 lac - Rs. 5 lac
Rs. 5 lac - Rs. 8 lac
Rs. 8 lac - Rs. 11 lac
Rs. 11 lac & above
* Which brokerage service providers do you use?
(Mention each name on a separate line)

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