ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Reforming the Risky Financial System

Other People's Money: The Real Business of Finance by John Kay; New York: Public Affairs, 2015; pp 352, $27.99 (hardcover).

Indian Exchange Traded Funds

This paper seeks to model the long-run relationship between Indian exchange traded funds or ETFs and their underlying indices. The findings indicate that the relationship fails to fully explain the price dynamics of Indian ETFs. In other words, Indian ETFs serve as an imperfect hedge for investors who have exposure to respective underlying indices.

Sagging Agricultural Commodity Exchanges

Commodity derivatives have a crucial role to play in managing price risk especially in agriculture dominated economies. However, as long as prices of many commodities are restrained to a certain extent by government intervention in production, supply and distribution, forward and futures markets for hedging price risk in those commodities have only limited practical relevance. A review of the nature of institutional and policy level constraints facing this segment calls for more focused and pragmatic approach from the government, the regulator and the exchanges for making the agricultural futures market a vibrant segment for risk management.
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