Sebi’s consultation papers on futures and options suggest seven proposals to tame retail speculation, potentially reducing market volumes and earnings for exchanges. Some welcome the proposals while others warn of a severe hit to market volumes if implemented all at once. Measures aim to promote long-term market stability and protect investors. Potential benefits include reduced volatility, more stable markets, and lower option prices. The changes may shift trading towards futures and limit flexibility in trading strategies. The aim is to balance short-term inconvenience with a more stable and secure market environment. The proposed measures are seen as necessary to control speculation and rationalize equity derivatives volumes.