scholarly journals Decisive Scrutiny of Regulatory Framework for Derivatives Products in Indian Stock Market with Special Reference to Single Stock Futures

2020 ◽  
Vol 8 (1) ◽  
pp. 44-50
Author(s):  
Rajani Bhat ◽  
V N Suresh
Keyword(s):  
Risk Management ◽  
Special Reference ◽  
Global Financial Crisis ◽  
Regulatory Framework ◽  
Management Tool ◽  
Market Participants ◽  
The Government ◽  
Derivatives Markets ◽  
Single Stock Futures ◽  
Derivative Products

The ability of the derivatives market to function as a risk management tool for risk avoiders has resulted in the popularity of the derivative products and, therefore, volatile underlying assets have recorded high trading volumes in the derivative market. A cautious approach was employed by market regulators and the government in the introduction of derivative products, and concerns about extreme market movements and manipulations are addressed as and when such events are detected. Derivatives markets are expected to bring in increased investments to the economic sector in the long run by boosting the confidence of market participants and catering to their risk management needs. Because derivatives markets are expected to provide investors higher overall returns, they are expected to foster the saving habit of market participants and bring about economic growth. Handling innovative products in the market calls for a very secure, dynamic, and sustainable framework of regulatory authorities. When the history of Indian derivative markets is considered, it is seen that The regulatory framework for the derivative trading is as effective as, during the post-global financial crisis period, the recovery of the Indian markets was commendable. The present study undertakes an analysis of the regulatory framework for the derivatives market in the Indian scenario with special reference to single stock futures.

scholarly journals Significance and Key Challenges in Conducting Stress Testing for Islamic Commercial Banks

2015 ◽  
Vol 1 (2) ◽  
pp. 085 ◽  
Author(s):  
Jamshaid Anwar Chattha
Keyword(s):  
Risk Management ◽  
Commercial Banks ◽  
Financial Stability ◽  
Stress Testing ◽  
Global Financial Crisis ◽  
Balance Sheet ◽  
Management Tool ◽  
Stress Tests ◽  
Management Tools ◽  
Simple Task

With the current cross-border growth in Islamic finance, Islamic commercial banks (ICBs) are looking forward to being perceived as an industry in the process of becoming mature. This would require the establishment of some basic infrastructure, including sophisticated risk management tools that enhance the soundness and resilience of the ICBS. This paper focuses on the latter that is the role and significance of stress testing as a risk management tool. The stress testing has become part of the regulatory and supervisory authorities within the financial stability analysis. The global financial crisis (2008) has placed the spotlight squarely on stress tests. Though, ICBs operate within the similar financial environment, and their balance sheet composition, however, calls for different treatment in stress testing. Apart from the specificities of ICBs, there are key issues and challenges that should be given due considerations in developing an appropriate stress testing regime. This paper explores key specificities and challenges. The paper argues that in the beginning, conducting the stress testing may not appear a simple task for the ICBs. However, a proper consideration to the challenges identified in the paper would certainly tend to improve the overall effectiveness and credibility of the stress testing programmes.

Farm Debt Waiver in India

2019 ◽  
pp. 243-260
Author(s):  
Sushma Nayak ◽  
Shrabana Mukherjee
Keyword(s):  
Risk Management ◽  
Moral Hazard ◽  
Debt Crisis ◽  
Management Tool ◽  
Process Learning ◽  
The Government ◽  
Farm Debt ◽  
Credit Culture

Farm debt waivers have been introduced in India, from time to time, to provide relief to the indebted farmers. The chapter focuses on the viability of farm debt waiver in India—whether it serves as an ephemeral palliative (a temporary reassuring measure) or an enduring risk management tool (a permanent remedy to build resilience against a longstanding debt crisis)—for farmers by employing situation, actor, process, learning, action, performance (SAP-LAP) framework. Loan waivers occasionally appear as a quick fix to alleviate farmers' misery. They trigger moral hazard as the farmers make no attempts to repay the loans themselves with the expectation that an imminent waiver from the government would clear their debts, thus ruining the credit culture of the country. From a policy viewpoint, it is imperative to make agriculture sustainable by lessening inefficiencies, augmenting income, moderating costs, and affording protection through premeditated and well-defined insurance schemes.

Blockchains and Risk Management Infrastructure of the Derivatives Industry

Cryptoassets ◽  
2019 ◽  
pp. 203-218
Author(s):  
Petal P. Walker
Keyword(s):  
Risk Management ◽  
Market Participants ◽  
Increase Risk ◽  
Reduce Risk ◽  
Derivatives Markets

This chapter explores vectors necessary for tackling the integration issues posed by blockchain technologies in derivatives markets. It begins with an overview of a typical derivatives transaction and a discussion of the basic regulatory infrastructure designed to address the risks of the derivatives markets today, including its registration regime. Next the chapter provides an overview as to how blockchain could be applied in the derivatives markets. In a third step, it explores the ways in which a blockchain-based derivatives market could possibly reduce risk, followed by an overview of some of the risk concerns about blockchain raised by market participants and how they may be addressed. The chapter concludes by considering an issue that has escaped considerable attention—how the application of today's risk-based registration regime on tomorrow's blockchain market may actually increase risk.

Overcoming Stereotypes

2008 ◽  
pp. 110-120 ◽  
Author(s):  
A. Yakovlev
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Pragmatic Approach ◽  
Economic Problems ◽  
Conventional View ◽  
The Government ◽  
High Uncertainty

Using the data of SU-HSU enterprises surveys and internal statistics of KPMG company the paper provides a non-conventional view on three economic problems which have recently been in the center of expert discussions in Russia: competitiveness of firms, corruption in the government and level of taxation. The paper argues the necessity of pragmatic approach to economic phenomena, especially under conditions of high uncertainty caused by the increasing global financial crisis.

E-Government : an exploratory study of online government procurement

2008 ◽  
Vol 5 (2) ◽  
pp. 15
Author(s):  
Maniam Kaliannan
Keyword(s):  
Public Sector ◽  
Empirical Investigation ◽  
Government Procurement ◽  
Management Tool ◽  
Government Service ◽  
The Public ◽  
Organizational Perspective ◽  
Effective Manner ◽  
The Government ◽  
Government Level

The quest to improve the government service delivery is becoming an important agenda for most governments. The introduction oflCT in the public sector especially E-Government initiatives opens up a new chapter in the government administration throughout the world. Governments have deployed ICT to serve their citizens in an efficient and effective manner. This paper presents an empirical investigation of Malaysian government's e-Procurement initiative (locally known as e-Perolehan). The aim of the paper is to examine factors that influence the current and future use of the system within the supplier community. These factors are grouped in three perspectives, (i) organizational perspective; (ii) technological perspective; and (Hi) environmental perspective. The general consensus amongst both the buyer and seller communities is that e-procurement will become an important management tool to enhance the performance of supply chain especially in the public sector. However, before this occurs, the findings suggest that several issues must be addressed by the relevant authorities in light of the three perspectives as mentioned above, to improve the procurement process at the federal government level.

Parameter framework - a risk management tool to improve the safety of tailings facilities

2007 ◽  
Vol 15 (2) ◽  
pp. 223-233 ◽  
Author(s):  
J. Engels ◽  
D. Dixon-Hardy ◽  
C. McDonald ◽  
K. Kreft-Burman
Keyword(s):  
Risk Management ◽  
Management Tool

MENGELOLA RESIKO DENGAN PRODUK DERIVATIF

2008 ◽  
Author(s):  
Dandes Rifa
Keyword(s):  
Risk Management ◽  
Value At Risk ◽  
Foreign Currency ◽  
Balance Sheet ◽  
Cash Flows ◽  
Market Risks ◽  
Hedging Strategies ◽  
Operational Hedging ◽  
Potential Risks ◽  
Derivative Products

The main objective of risk management is to minimize the potential for losses (risk) arising from unexpected changes in currency rates, credit, commodities and equities. One of the risks faced by companies is market risk (value at risk). This article aims to explain that risk management can be one of them by using derivative products. Derivative transactions is very useful for business people who want to hedge (hedging) against a commodity, which always experience price changes from time to time. There are three strategies that can be used to hedge the balance sheet hedging strategy, operational hedging strategies and contractual hedging strategies. Staregi contractual hedging is a form of protection that is done by forming a contractual hedging instruments in order to provide greater flexibility to managers in managing the potential risks faced by foreign currency. Most of these contractual hedging instrument in the form of derivative products. The management can enhance shareholder value by controlling risk. -Party investors and other interested parties hope that the financial manager is able to identify and manage market risks to be faced. If the value of the firm equals the present value of future cash flows, then risk management can be justified. 

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