Legal Framework for Regulation of Financial Instruments With Special Emphasis to Financial Derivatives

Abstract

Financial sector has emerged as a major global force during the past century. With the advent of globalisation, most financial markets across the world have started accommodating a combination of local and global players. Finance as an industry has grown by crowd-sourcing i.e., from contribution from a number of small / retail investors, who form a cross section of the society. As in any industry, there were cycles of financial losses and gains and many investors suffered losses. When financial transactions led to large scale losses to public, the governments were forced to intervene and take legislative and executive measures to restore public faith in the monetary system. This thesis examines whether such regulatory measures have proved fruitful, and whether there is any further scope for improvement. newline