UPSC Previous Year Question | Prelims GS | 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?

  1. I and II only
  2. II and III only
  3. I and III only
  4. I, II and III

Answer

Correct Answer

I and II only

Explanation

India has, in recent years, accounted for a very large share of global equity options trading volume, and Indian markets briefly overtook Hong Kong in market capitalization. However, SEBI does actively regulate and issue investor-protection warnings on options trading and takes action against unregistered advisors, so Statement III is incorrect.

Topics: economy, sebi, stock market