Consider the following statements I India accounts for a very large portion of all equity option con...........

Indian Economy (CDS) Financial System

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?

This questions was previously asked in

UPSC CSE 2025 (General Studies-1)

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I and II only

II and III only

I and III only

I, II and III

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Explanation:

- Statement I: India is indeed a major player in the global equity options market. The growth of options trading in India has been substantial, placing it among the top countries for such trading volumes.

- Statement II: The Indian stock market has shown rapid growth recently. It has indeed become one of the world's largest markets by overtaking markets like Hong Kong temporarily in terms of certain metrics.

- Statement III: India does have a regulatory body, the Securities and Exchange Board of India (SEBI). SEBI is responsible for regulating the securities market and protecting investors, which includes measures to warn investors about risks and overseeing financial advisors.

Option 1: I and II only – Correct