by Q. Consider the following statements:
UPSC Civil Services Examination (Prelims) 2025 – General Studies Paper I
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 small investors about the risks of options trading or to act on unregistered financial advisors in this regard.
Which one of the following is correct in respect of the above statements?
(a) I and II only
(b) II and III only
(c) I and III only
(d) I, II and III
Answer: (a) I and II only
Explanation:
- Statement I is correct: According to global trading data, India contributes a major share of equity derivatives trading, especially in options.
- Statement II is correct: India has recently surpassed Hong Kong in terms of stock market capitalization and activity.
- Statement III is incorrect: India has a regulatory authority, SEBI (Securities and Exchange Board of India), which actively warns and regulates trading, including taking action against unregistered advisors.
