Sebi’s consultation papers on F&O suggest seven proposals to tame retail speculation in derivatives, potentially reducing market volumes and earnings of domestic stock exchanges. The measures may also impact discount brokers and hurt retail participation in F&O. Some experts warn that implementing all proposals at once could lead to a significant erosion of volumes. However, others believe that reducing F&O volumes can bring down volatility and create a more stable market for retail investors. The measures aim to promote long-term market stability and protect investors from excessive speculation. The changes are expected to promote a healthier trading environment and support sustainable growth in the derivatives market.