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?

States NSE is India's largest exchange, offers a trading platform for derivatives (including equity derivatives) and has nationwide electronic volume.

A student could combine this with external global exchange volumes (e.g., top exchanges' derivatives volumes) to estimate India's share by comparing NSE derivatives volumes to global totals.

Notes that India has leading stock exchanges and specifies settlement cycle (T+2), implying operational maturity and standardized trading infrastructure that supports high contract volumes.

Use knowledge that mature, high-liquidity exchanges tend to generate larger option contract volumes; compare India's exchange infrastructure and typical volumes with other mature markets to judge plausibility.

Says India's percentage share in global trade is 'on the lower side', indicating India is a relatively smaller share of some global economic aggregates.

A student could use the idea that India often holds a smaller share of global economic activity to hypothesize a modest percentage share of global option contracts unless domestic derivatives activity is disproportionately large.

Provides concrete percentages of India's exports to major partners, demonstrating how India’s share metrics are presented and evaluated in international contexts.

Apply the practice of expressing national contributions as percentage shares of global or bilateral totals to compute India's share of global option contracts once volumes are obtained externally.

Shows breakdowns and percentage shares for commodity groups in exports, exemplifying use of percentage-share tables for national economic aggregates.

Students can follow the same method—obtain India's annual traded option contract count (from NSE reports) and divide by total global annual traded contracts to produce the requested percentage.

Defines SENSEX as a free-float market-capitalisation weighted index and gives the formula linking total weighted market capitalisation to the index.

A student can use this to understand that comparisons of market capitalisation require clarifying whether free-float or full market cap is used, and then obtain comparable market-cap series for India and Hong Kong to compare over time.

Gives concrete size bands (e.g., mid cap defined by market capitalisation ranges in rupees), illustrating that the texts treat market-cap thresholds as an explicit measurable quantity.

A student could convert such rupee thresholds and aggregate company caps to estimate overall market-cap scale, or use analogous banding to interpret published market-cap totals for India vs Hong Kong.

Describes financial-sector reforms (1992) that opened capital markets to portfolio investments and access to international capital, a structural factor that can drive growth in India's market capitalisation.

A student can combine this with timelines of capital-market liberalisation and subsequent GDP/market-cap growth to identify periods when India's market cap might have accelerated relative to Hong Kong's.

Notes that foreign institutional investors can buy/sell Indian securities (subject to registration/PIS), indicating channels for large cross-border inflows that affect market capitalisation.

A student could examine FII inflow records and major inflow years, correlate them with rises in India's market cap, and compare those years with Hong Kong's market-cap trajectory.

Explains liberalisation of foreign exchange and increased participation of foreign institutional investors after 1991–1999 reforms — contextual drivers of equity-market growth.

A student can use these policy-change dates as anchors and then consult time-series market-cap data (converted to a common currency) to check whether and when India overtook Hong Kong.

This snippet states that secondary markets are regulated by SEBI, implying SEBI has authority over market activities where derivatives/options trade.

A student could check SEBI's role on investor protection (e.g., 'investor education' or 'alerts' pages) or search SEBI advisories for warnings on options trading.

It notes the Forward Markets Commission (FMC) — former regulator of commodity futures — was merged with SEBI, indicating SEBI now covers derivative/commodity markets previously under FMC.

One could infer SEBI may have absorbed FMC's investor-protection activities and then look for SEBI notices or circulars relating to futures/options risk warnings.

Depositories and their participants are regulated by SEBI, showing SEBI's broad supervisory remit over intermediaries that service retail investors.

A student could extend this to expect SEBI to issue guidance or warnings aimed at retail clients serviced by these intermediaries, then search intermediary circulars or SEBI advisories.

Defines several market entities and explicitly states that certain investment vehicles (AIFs) are regulated by SEBI, reinforcing SEBI's regulatory scope across diverse financial products.

Using this pattern, a student might reasonably look for SEBI-issued investor alerts across product types, including option-related communications.

States that depositories and their agents (DPs) are regulated by SEBI, showing SEBI's role regulating market intermediaries.

A student could extend this by checking SEBI's wider remit over securities market intermediaries to see if 'financial advisors' for derivatives/options fall under its registration/enforcement rules.

Says foreign institutional investors must register with SEBI to operate in Indian capital markets, illustrating a pattern that market participants/advisors often require SEBI registration.

Use this pattern to investigate whether advisory services related to securities/options similarly require SEBI registration and whether non‑registration triggers enforcement.

Describes the Financial Stability and Development Council (FSDC) as coordinating inter‑regulatory matters across financial sector regulators.

A student could infer that issues spanning securities advice (options) and consumer protection could be coordinated among regulators (e.g., SEBI, RBI) via FSDC and check which regulator has primary authority.

Defines 'regulatory forbearance' (tolerance or not enforcing rules), highlighting that even where a regulator exists, enforcement may vary.

Combine this with knowledge of any regulator's mandate to assess not only legal authority but likelihood/practicality of action against unregistered advisors.

Summarizes the Supreme Court striking down an RBI circular banning crypto services, demonstrating that regulatory actions can be legally contested and that regulators' enforcement tools have legal limits.

A student could apply this precedent to anticipate legal constraints on enforcement against unregistered advisors and look up relevant case law or limits on regulator directives.