Economy2025
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?
Explanation
The correct option is "I and II only" because both statements highlight India's significant growth in equity options trading and its stock market, reflecting its increasing relevance in the global financial landscape. Statement I underscores India's substantial share in global equity option contracts, indicating market momentum, while Statement II notes the rapid expansion of India's stock market, at times surpassing established markets like Hong Kong's. However, Statement III is incorrect as it overlooks the presence of regulatory bodies like the Securities and Exchange Board of India (SEBI), which actively oversees market practices and aims to protect investors, including warning them about the risks associated with options trading.