Feasibility of introducing real estate derivatives in India

Abstract

The project gives a brief introduction to the real estate derivatives and their requirements. It attempts to analyze the real estate derivatives trading in other markets bringing out the advantages and disadvantages of such these derivatives. The study also involves analysis of various real estate indices active in India and other parts of the world. The advantages and disadvantages of these indices are analyzed. Finally the study identifies the structure of simple property derivatives best suited for India given the current market and regulatory conditions. The three products identified are: Total return Swap; Index Return Swap and Sensex Return Swap