MUMBAI (Reuters) - Any unchecked explosion of retail trading could trigger challenges for investor sentiment and markets, India's finance minister said on Tuesday.

"Any unchecked explosion in retail trading of futures and options can create future challenges, not just for the markets, but for investor sentiment and household finances," Nirmala Sitharaman said at an event in Mumbai.

(Reporting by Jayshree P Upadhyay in Mumbai; Editing by YP Rajesh)