Explanation : 

Statement I: India accounts for a very large portion of all equity option contracts traded globally, thus exhibiting a great boom.

This statement is correct. Indian exchanges accounted for approximately 78% of the 108 billion equity options contracts traded worldwide in 2023. In the first quarter of 2024, over 84% of all equity options traded globally were on Indian exchanges. India has rapidly transformed from a minor participant to the world’s largest equity derivatives market in just five years.

Statement II: India’s stock market has grown rapidly in the recent past, even overtaking Hong Kong’s at some point of time.

This statement is correct. India’s stock market overtook Hong Kong’s in January 2024, becoming the fourth-largest equity market globally by market capitalization. The combined value of shares listed on Indian exchanges reached $4.33 trillion, surpassing Hong Kong’s $4.29 trillion.

Statement 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.

This statement is incorrect. The Securities and Exchange Board of India (SEBI) is the regulatory authority for financial markets in India. SEBI has actively warned investors about the risks of options trading, highlighting that a significant majority of investors lose money in this segment. SEBI has also introduced new regulations to address these risks, such as increased margins and stricter position limits for options trading. Regarding unregistered financial advisors, SEBI prohibits entities from associating with them and has directed registered entities to terminate contracts with such advisors. SEBI also takes action against unregistered advisors, including issuing warnings and directing refunds for illegal advisory services.

Conclusion: Only statements I and II are correct. Statement III is incorrect.