"Whatever broad-based the participation of retail investor in the futures market may be, entry of institutional investors only will raise volumes in the market. Futures are basically an institutional product," Menachem Brenner of Stern School of Business of New York University said here on Friday.

International experience, as represented in US, Japanese, Korean and Taiwanese futures markets, shows that the markets experience `deep discounts' in the initial days of tradings, he said at an investor education lecture organised by Securities and Exchange Board of India (Sebi) and others. "You will experience a similar trend, and this will result mostly because of local influences such as volatility of the underlying market and lack of experience with derivatives trading," he added.

Regulatory restrictions, particularly curtailing shortselling and stock credit limitations, have also hindered growth of this market in many countries, he said, and advised Sebi not to resort to such restrictions on the market.