QUESTION

GS

Medium

Economy

Prelims 2025

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 the 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?

Select an option to attempt

Explanation

India has seen a massive rise in equity options trading and stock market capitalization, but investor protection is actively overseen by SEBI.

Statement I: Correct India leads globally in equity options trading volume, reflecting a major boom in the derivatives market.

Statement II: Correct In early 2024, India's stock market temporarily overtook Hong Kong’s, becoming the 4th largest by market cap.

Statement III: Incorrect India has a regulatory body—SEBI—which issues warnings and acts against unregistered advisors.

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