Indian Stock Market & Options Trading
Question
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?
Options
I and II only
II and III only
I and III only
I, II and III
Explanation
Statements I and II are correct. Statement III is incorrect.
India has seen a massive surge in derivatives trading, and its market capitalization recently overtook Hong Kong's. However, SEBI actively regulates the market, frequently issuing risk disclosures regarding F&O trading and penalizing unregistered finfluencers.
Answer: (a).
Question details
Year
2025
Paper
GS Paper 1
Question
Q8
Subject
Economy
Sub-topic
Financial Markets & Instruments
Type
Statement-based
Difficulty
Hard
Nature
Current-affairs-linked
Source hint
SEBI Equity Derivatives F&O Risk Disclosures 2024
Same sub-topic — other years
Financial Markets & Instruments has appeared in multiple papers:
See all questions on Financial Markets & Instruments
Browse every tagged question across all years