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Beginners in Derivatives

CA Nikita (Chartered Accountant) (4158 Points)

29 August 2007

Anybody new to derivatives can put their doubts here...

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12 Replies

(Guest)

doubts about?

VishwanathSR (Service) (91 Points)
Replied 30 August 2007

Send me details to my id: vishwanath.sr @ gmail.com

Yash Arya (Profession) (128 Points)
Replied 30 August 2007

Hy Nikita, can you share how derivative works? I understand equity market and am investing since last 3 years and earning handsome returns. Can you please guide me for derivatives and if possible for Commodity market as well. Thanx Yash Arya aryash11 @ yahoo.com

(Guest)

Kindly clarify how the loss on derivatives transactions should be treated - as a business loss or a short term capital loss or either of these two or any other? Pl. specify relevant sections with interpretation. Also clarify about profit on derivatives transactions.

Shashwat Shekhar (Assistant Manager) (3528 Points)
Replied 04 September 2007

What are the job opp in this sector?How to approach to Companies?

SAIRAM (Chartered Accountant) (88 Points)
Replied 04 September 2007

Hi Kelkar, if derivitives are used for hedging purpose then there are not treated under business income provided the hedging is done for shares which are treated as investment and are assessed under capital gains. Else it is treated a business income(speculative). I have no idea of any section or interpretition.I read this in the budget notes.Pls let me know if any one have a contrary view

Shikhak (CA Business) (30 Points)
Replied 06 September 2007

Hi, I wud like to know how profit/loss on transactions entered in the commodities market are to be accounted for?Whether they shud be treated as busimess income/loss or as speculative income/loss as no securities transaction tax is charged on such transactions?

SAIRAM (Chartered Accountant) (88 Points)
Replied 14 September 2007

Any transactions which are entered and settled without actual delivery of underlying asset then they amount to speculation and are assessed under speculative business.

There are many transaction where commodities are actual delivered.In these case it is assessed under normal business income.

In case of stock derivatives, even if no actual delivery is done and the position is taken for hedging purpose then it is assessed under normal business income and not as speculative income

Prakash Popat (3134 Points)
Replied 20 September 2007

Very Very deep subjects,like SAP/ERP..................one has to put lot of efforts and practice for the platform where world brain meet at one place,and watchdog instead of doing umpiring jobs,try to find fat fish,mutton curry to eat and barks as per instructions of their master to other players.Take it lightly dear Watchdog.