Q. 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?
Exp) Option a is the correct answer.
Statement I is correct: As per NSE data and BIS reports, India has become a major hub for equity derivatives, especially options.In 2023, India accounted for a significant share of global equity option volumes — more than 80% of global equity index option trades happened on Indian exchanges like NSE.
Statement II is correct:In January 2024, India’s stock market briefly overtook Hong Kong’s to become the fourth largest in the world in terms of market capitalization.
Statement III is incorrect: The Securities and Exchange Board of India (SEBI) is the statutory regulatory authority responsible for overseeing the securities market in India. It plays a vital role in regulating stock market operations, safeguarding investor interests, taking action against unregistered financial advisors, and issuing guidelines related to derivatives trading. For instance SEBI has actively cracked down on unregistered financial advisors and regularly releases circulars to caution small investors about the risks involved in trading
Source:
https://www.economist.com/finance-and-economics/2024/05/02/hedge-funds-make-billions-as-indias-options-market-goes-ballistic
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