The development of derivatives markets in many countries has contributed quite significantly to their growth. This book attempts to provide an indian perspective, both in terms of the macroeconomics aspects, as well as the specifics of derivatives, including futures trading. Written by a world bank economist who has made an insightful study of derivatives, the book would be a valuable reference on the subject. It covers: a comprehensive theoretical and empirical treatment of the nature, functions, benefits and problems of forward and futures markets, with specific reference to indiaan analysis of carry forward trading (modified badla) in the indian stock market an introduction to options, swaps, and other derivatives to provide a working knowledge of their nature and usesan analysis of market structure and the regulatory framework for derivatives an overview of accounting and tax treatment of derivativesmanagement of derivative risksfuture evolution of derivatives in india and abroadglossary of specialised terms. The book is meant for market participants, economists, accountants, financial analysts, financial journalists, policy makers, and students of finance. It covers all facets of derivatives-what they are, why they exist, how they work, as well as what good (and what harm) they can do.