Convergence of Stock Futures Markets – An Analytical Study of Indian Stock Markets
Rajeesh Viswanathan1, Jintu George2, D Lazar3, Jahira Parveen4
1Dr. Rajeesh Viswanathan, Assistant Professor, Department of International Business, School of Management, Pondicherry University, Pondicherry (Tamil Nadu), India.
2Jintu George, Research Scholar, Department of International Business, School of Management, Pondicherry University, Pondicherry (Tamil Nadu), India.
3Dr. D Lazar, Professor, Department of Commerce, School of Management, Pondicherry University, Pondicherry (Tamil Nadu), India.
4Dr. Jahira Parveen, Faculty of Management, SRM Institute of Technology, Chennai (Tamil Nadu), India.
Manuscript received on 04 July 2019 | Revised Manuscript received on 14 August 2019 | Manuscript Published on 27 August 2019 | PP: 337-342 | Volume-8 Issue-2S4 July 2019 | Retrieval Number: B10640782S419/2019©BEIESP | DOI: 10.35940/ijrte.B1064.0782S419
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Trading on stock futures was introduced in India on 9 th November 2001. Initially the contracts are settled in cash and in 2010 July 15 the SEBI allowed the exchanges to choose the physical settlement system for futures trading in stocks, with an aim to put the Indian futures and settlement system at par with other developed markets. So the stocks can be settled either through the cash or physical delivery. The study aims to investigate the price convergence between the spot and the futures prices and its effect on cash settled and the physical delivery in single stock futures. The study finds that there is an efficient convergence of both the market under the Physical delivery and its persistence throughout the contract period while compared with the cash settled single stock futures.
Keywords: Markets Physical Stock Analytical.
Scope of the Article: Marketing and Social Sciences