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    Question

    Which of the following statements is/are correct

    regarding Derivatives in India? 1)┬а┬а┬а Derivatives are financial instruments that derive their value from an underlying asset. 2)┬а┬а┬а Securities and Exchange Board of India (SEBI) regulates the trading of Derivatives in India. 3)┬а┬а┬а The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures in 2000.
    A 1 only Correct Answer Incorrect Answer
    B 2 and 3 only Correct Answer Incorrect Answer
    C 1 and 3 only Correct Answer Incorrect Answer
    D 1 and 2 only Correct Answer Incorrect Answer
    E 1, 2 and 3 Correct Answer Incorrect Answer

    Solution

    Statement 1 is correct as Derivatives are financial instruments that derive their value from an underlying asset. Statement 2 is also correct as SEBI regulates the trading of Derivatives in India, with a view to maintaining transparency, fairness and efficiency in the market. ┬а The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures on June 12, 2000

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