Consider the following statements:
I. India accounts for a very large portion of all equity option contracts traded globally, thus exhibiting a great boom.
II. India’s stock market has grown rapidly in the recent past, even overtaking Hong Kong’s at some point of time.
III. There is no regulatory body either to warn small investors about the risks of options trading or to act on unregistered financial advisors in this regard.
Which of the statements given above are correct?
- A.I and II only
- B.II and III only
- C.I and III only
- D.I, II and III
▶ Answer & Explanation
Correct answer: A. I and II only
India's equity derivatives market, particularly options, has seen significant growth in volumes, contributing substantially to global trading. The Indian stock market has indeed experienced rapid expansion, with market capitalization briefly surpassing Hong Kong's. The Securities and Exchange Board of India (SEBI) actively regulates market participants and intermediaries, including those involved in advisory services, and issues warnings regarding the risks associated with derivative trading to protect investors.
Source: UPSC gs1 2025