APPENDIX - I INVESTORS PERCEPTION TOWARDS DERIVATIVES WITH REFERENCE TO FUTURE AND OPTIONS AT TANJORE DISTRICT QUESTIONNAIRE. 2. Gender : Male Female

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1 II APPENDIX - I INVESTORS PERCEPTION TOWARDS DERIVATIVES WITH REFERENCE TO FUTURE AND OPTIONS AT TANJORE DISTRICT A. GENERAL INFORMATION 1. Name of the Investor : QUESTIONNAIRE 2. Gender : Male Female 3. Age : Up to > Educational Qualification : Up to Secondary Degree Post Graduate Professional 5. Occupation : Self Employed Govt./Private Employee Others 6. Area of Domicile : Rural Semi-Urban Urban 7. Marital Status : Married Unmarried 8. Monthly Income of Family : Up to Rs Rs > Rs What is your Total Annual Investment? < Rs Rs Above Rs the following investments in the order of your preference: Fixed Deposit Mutual Fund Equity (Share) Market Commodity Market Financial Derivative (Future / Option) Market Insurance Real Estate Gold

2 III 11. Give you opinion about the Level of Risk Associated with Following Investments (Tick the appropriate box) [1 = Very Low (VL), 2 = Low (L), 3 = Moderate (M), 4 = High (H), 5 = Very High (VH)] Investment Options VL L M H VH 1 Fixed Deposit 2 Mutual Fund 3 Equity (Share) Market 4 Commodity Market 5 Financial Derivative (Future / Option) Market 6 Insurance 7 Real Estate 8 Gold 12. What type of Investor you are? Medium Term (1-5 years) Long Term (> 5 Years) 13. How long have you been associated with Capital Market? < 1 Year 1 2 Years 3 5 Years > 5 Years 14. How long have you been investing (trading) in Derivative Market? < 1 Year 1 2 Years >2 Years 15. Give your level of Awareness about following Derivative products (Tick appropriate box) [1 = Very Low (VL), 2 = Low (L), 3 = Moderate (M), 4 = High (H), 5 = Very High (VH)] Derivative Products VL L M H VH 1 Equity (Stock) Futures 2 Equity (Stock) Options 3 Index Futures 4 Index Options 5 Commodity Derivatives 6 Forward Market 7 Swaps

3 IV 16. What attracts you to invest in Derivative market? ( the Factor) Factor 1 Low Risk 2 Low Investment 3 High Return 4 High Liquidity 5 Speculation 17. What percentage of your total investment is invested in Derivative market? < 50% 51-75% > 75% 18. What is the frequency of Trading in Derivative market Financial Derivatives? Daily Weekly Monthly Occasionally 19. What Method of Analysis you undertaken for Investments in Derivative Market? (more than one can be chosen) Method Tick 1 Fundamental Analysis 2 Technical Analysis 3 Fundamental and Technical Analysis 4 Experts Advice 5 All the above 20. Which is the best source to get advice for investment in Derivative market? Give your rank in the order of preference Source 1 Newspapers 2 Television 3 Friends & Relatives 4 Stock Brokers 5 Magazines meant for capital market 21. What technique do you use to manage the risks in Derivative market Technique 1 Avoidance 2 Exit with minimum loss 3 Diversification 4 Average Down 5 Ignore the risk 6 Hedging 7 Invest with the trend in the market

4 V 22. What are the advantages of Derivative market? ( the Factor) 1 Transferability of Risk 2 Low Investment 3 High Return 4 High Liquidity 5 Price Discovery Factor 23. What are the disadvantages of Derivative market? ( the Factor) 1 Volatile 2 Returns not assured 3 Risky 4 Complexity 5 Standardized contracts 6 High contract size (lot size) Factor 24. the advantages of investing in F&O Segment: 1 Certainty of performance 2 High liquidity 3 Low margin deposit 4 Transparency in pricing Advantages 25. the limitations of F&O Segment: Limitations 1 Obligatory nature 2 The holder is exposed to risk 3 Stock price variation 4 Margin deposit 5 High contract size 6 Lack of flexibility 7 Highly Standardized

5 VI 26. What extent do your objectives match with the investment in F & Os (Tick appropriate box) [1 = Not at all (N), 2 = Little Extent (LE), 3 = Some Extent (SE), 4 = Moderate Extent (ME), 5 = Large Extent (LE)] Derivative Products N LE SE ME LE 1 Speculation 2 Arbitrage 3 Hedging 4 Risk Management 27. How frequently you invest in the following derivative products [1 = Never (N), 2 = Rarely (R), 3 = Sometimes (S), 4 = Often (O), 5 = Very Often (VO)] Derivative Products N R S O VO 1 Equity Futures (on Individual stocks) 2 Equity Options (on Individual stocks) 3 Stock Index Futures 4 Stock Index Options 28. Give your level of Agreement with various characteristics (Status) of Derivative/ Financial Derivative Market [1 = Strongly Disagree (SD), 2 = Disagree (D), 3 = Neither Disagree nor Agree (N), 4 = Agree (A), 5 = Strongly Agree (SA)] Services SD D N A SA 1 Derivatives are new, complex and high-tech financial products 2 Derivatives are purely speculative and highly leveraged instruments 3 Only big institutions / investors have a purpose for using derivatives 4 Financial derivatives are simply the latest risk management fashion 5 Only risk seeking organizations / investors should use derivatives 6 The risks associated with financial derivatives are new and unknown 7 Derivatives trading is an unsafe and risky 8 Derivatives trading increasing systematic risk Because of the risk associated with derivatives, regulators 9 should ban their use 10 Derivative market is less speculative than equity market 11 Brokerage fee is very low 12 Volatility in derivative market is less than equity market

6 VII 29. Level of satisfaction with various aspects associated with trading / investments in Derivative Market [1 = Highly Dissatisfied (HD), 2 = Dissatisfied (D), 3 = Neutral (N), 4= Satisfied (S), 5 = Highly Satisfied (HS)] Services HD D N S HS 1 Return earned 2 Level of Risk 3 Diversification of investments 4 Liquidity aspects 5 Information provided by the brokers 6 Investors protection measures 7 Guidance of the experts (through media) 8 Settlement of the contracts 9 Size of the contract 10 Role of Stock Exchange 11 Role of the brokers 12 Role of SEBI 30. Give your suggestions, if any, for improving the operation of Derivative / Financial Derivative market Thank you for your kind cooperation