¹Prof. (Dr.) Rinalini Pathak Kakati,²Suman Sarmah

^1,2Department Of Business Administration, Gauhati University, Jalukbari, Guwahati - 781014

In this study, we examine the determinants of a successful derivative futures contract and explore whether an exhaustive checklist of criteria such as the one proposed by the Securities and Exchange Board of India (SEBI) guarantees the success of a commodity contract. This study has important implications for contract design and new product launches. More market-orientated risk management mechanisms such as hedging via derivatives could allow farmers and producers to manage their risk and efficiently discover true prices. The government's vision to develop a progressive and sustainable commodities market in India is facing a fundamental issue: What makes a futures contract successful? This study attempts to analyse this question. Academics and policymakers have long deliberated on the conditions that make a contract successful. This study revisits those conditions in the context of Indian agricultural futures contracts and assesses the dispositions made by the SEBI’s long list of criteria as well as insights from prior studies about the determinants of a successful contract. Tea satisfies almost all the criteria with either first or second rank among the three compared products. Therefore, we can conclude that Tea has the necessary and potential characteristics for introduction in the Commodity Derivative Market of India and progress forward as a successful commodity.

Derivative Futures Contract, Successful Contract, SEBI

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VOLUME 06 ISSUE 06 JUNE 2023

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