Q38.
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?
Answer
A
Explanation
I is correct: India has emerged as a dominant in the global equity options market. In the first of 2024, over 84% of all equity options traded were on Indian exchanges, a significant increase just 15% a decade earlier. Direct II is correct: In January 2024, the combined of shares listed on Indian exchanges reached trillion, surpassing Hong Kong's $4.29 trillion, India the world's fourth-largest stock market. III is not correct: India has an active body, the Securities and Exchange Board of (SEBI), which oversees the securities market. SEBI taken several measures to protect investors, issuing warnings to unregistered investment and implementing regulations to curb trading in derivatives