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UPSC 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?
(a)I and II only
(b)II and III only
(c)I and III only
(d)I, II and III
Attempt This Question
Not attemptedCorrect Answer: (a) I and II only
Data from the Futures Industry Association show that trades on NSE and BSE together accounted for about 80 % of worldwide equity-index options volume, so Statement I is correct. India’s total market capitalisation briefly surpassed Hong Kong’s in January 2024, validating Statement II. The Securities and Exchange Board of India (SEBI) issues risk-disclosure circulars on F&O trading and regularly cracks down on unregistered advisers, so a regulator does exist; Statement III is therefore wrong. Hence only I and II are correct. ([moneycontrol.com](https://www.moneycontrol.com/news/business/markets/amid-regulatory-concerns-india-corners-81-of-global-fo-volume-12752882.html?utm_source=openai))
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Frequently Asked Questions
What is the correct answer to this UPSC 2025 Indian Economy question?▼
The correct answer is option (a): I and II only. Watch the detailed video explanation in our Sherlocking Prelims course on UnlockIAS.
Which year was this Financial Markets & Capital Markets question asked in UPSC Prelims?▼
This question was asked in UPSC CSE Prelims 2025, GS Paper 1, as Question 8. It falls under Indian Economy > Financial Markets & Capital Markets.
What is the difficulty level of this UPSC question?▼
This question is rated "moderate". It requires sound conceptual understanding of the topic.
How many UPSC Prelims questions have been asked from Financial Markets & Capital Markets?▼
UPSC has asked 39 questions from Financial Markets & Capital Markets (under Indian Economy) across multiple years. Visit the topic page to see the full list and year-wise trends.