Real Estate Futures and Derivative Markets in India

Scope and Challenges

  • Atul Gupta Hindu college, University of Delhi
  • Ranvir Singh Sirohi Hindu College
  • Dhananjai Negi Hindu College
  • Sabhya Verma Hindu College
Keywords: Hedging, Bid-Ask Spread, Ring-Fencing, Collateral Debt Obligation (CDO’s), Securitization, Residential Mortgage-backed securities (RMBS), Subprime, Spot market, Total Return Swap, Negative amortization, Interest rate risk, SVR

Abstract

In this paper, we try to explain how Real Estate Futures and the Derivatives market would be important for our Indian Economy. We aim to come up with the scope of Real Estate Futures and Derivative Markets in India and also take into consideration the challenges that this would face in the Indian Markets. To come up with these things we conducted a literature review, in which we went through Research Papers written before the commencement of this market regarding the basics of Real Estate futures and derivatives market in other countries as well as papers that were written after the market was implemented. The Real Estate Futures and Derivatives market will also provide liquidity to investors who want to diversify their portfolio and even to those who want to hedge their losses. Liquidity being an important factor in any futures and derivatives market, it is important to have investors who possess the right information and knowledge as to how the market functions. The Indian Real Estate Market was examined and the advantages of Real Estate Futures and Derivatives markets outweigh the challenges. 

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Author Biographies

Atul Gupta, Hindu college, University of Delhi

Assistant Professor, Commerce Dept,Hindu College, University of Delhi, Delhi

Ranvir Singh Sirohi, Hindu College

Student, Commerce Deptt, Hindu College

Dhananjai Negi, Hindu College

Student, Commerce Deptt, Hindu College

Sabhya Verma, Hindu College

Student, Commerce Deptt, Hindu College

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Published
2021-06-30
How to Cite
Gupta, A., Sirohi, R. S., Negi, D., & Verma, S. (2021). Real Estate Futures and Derivative Markets in India: Scope and Challenges. INTERNATIONAL JOURNAL OF ECONOMICS, BUSINESS AND HUMAN BEHAVIOUR, 2(2), 11-21. Retrieved from https://ijebhb.com/index.php/ijebhb/article/view/34
Section
Original Research Article