This document is a project report submitted by Latha Sethy for her post graduation diploma in business management. The report focuses on studying financial derivatives, specifically with reference to India Infoline in Visakhapatnam, India. The report includes chapters on the industry and company profile, theoretical framework of derivatives, analysis and interpretation of data, findings, conclusions, and suggestions. Primary and secondary data collection methods are discussed. The objectives are to understand derivatives concepts and trading, analyze India's derivatives market performance since 2001, and gauge investor perception of derivatives investing.