Wednesday, March 07, 2018

Options in Securities issued to Foreign Investors - A Legal Option

Options in Securities issued to Foreign Investors - A Legal Option

Options vis-à-vis Derivative Contract

In the year 1999, for inducing more for investment in the Indian market, derivatives have been included within the meaning of term securities.[13]By the same amendment, derivatives have been defined as securities or contracts which derive its value from other securities or price indexes etc.[14] So, derivative contracts are the ones which derive their value from the underlying assets.

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