Correct Option
Statement 1 is correct.
- India has become a global leader in equity options trading.
- In the first quarter of 2024, Indian exchanges accounted for over 84% of all equity options contracts traded worldwide. This marks a substantial increase from approximately 15% a decade prior, reflecting an unprecedented boom in derivatives market activity.
Statement 2 is correct.
- India's stock market has grown rapidly in the recent past.
- In January 2024, India's stock market capitalization reached $4.33 trillion, surpassing Hong Kong's $4.29 trillion. This positioned India as the world's fourth-largest stock market by market capitalization.
- This surge was driven by factors such as strong domestic investor participation, robust corporate earnings, and foreign portfolio inflows.
Incorrect Options
Statement 3 is incorrect.
- The Securities and Exchange Board of India (SEBI) serves as the regulatory authority for India's securities markets.
- SEBI actively monitors and regulates market activities, including options trading. It issues warnings to small investors about the risks of derivative products.
- Additionally, SEBI takes action against unregistered financial advisors, ensuring investor protection and market integrity.