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?
Explanation:
Statement I: India's equity options market, particularly in terms of contract volume, has grown significantly to become one of the largest in the world. So, Statement I is correct. Statement II: The Indian stock market has experienced rapid growth in recent years, with its market capitalization surpassing that of Hong Kong at various times, making it one of the largest global markets. So, Statement II is correct. Statement III: The Securities and Exchange Board of India (SEBI) is the regulatory body responsible for protecting investors in the Indian securities market. It regularly issues advisories and warnings regarding the risks associated with derivatives trading (including options) and takes action against unregistered financial advisors to safeguard investor interests. So, Statement III is incorrect. Therefore, statements I and II are correct.