The derivatives are playing an important role in the economy of our country.. The first derivatives as futures contracts were introduced in the Yodoya rice market in Osaka, Japan around 1960. The commodity derivatives market has been functioning in India since nineteenth century with organized trading in cotton. Exchange traded financial derivatives were introduced in India in 2000 at two major stock exchanges. NSE and BSE. There are various derivative instruments like index futures. Stock futures, index option, stock options, interact rate futures, currency option, currently traded in these exchanges. This paper investigates the perception of the investors in NSE and BSE derivatives markets. The study focus on investors perception. The data were collected from 150respondents via a questionnaire survey