SEBI has proposed seven measures to control retail speculation in derivatives, which could reduce market volumes by 30-40% and earnings of domestic stock exchanges by 15-30%. Implementation of all proposals at once may lead to a significant erosion of volumes. Measures aim to reduce volatility, lower option prices, and promote a healthier trading environment. Critics warn of reduced retail participation and potentially shifting towards futures trading. Steps aim to balance stability and flexibility in trading strategies. Sebi’s measures are seen as necessary for long-term market stability and protecting investors from excessive speculation.